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About 16 other states have similar laws eithere on the books or pendinb intheir legislatures, said Scott Zajac, senior managinhg director of Advantage Capital Partners in St. Missouri, however, lacks a comparable state tax which is prompting companies such as Advantagew to consider shifting projects to other statesw that couple federal New Marketes Tax Credits with their own state he said. Advantage, a venturse and private equity capital firm with offices hasreceived $230 million in federal New Marketz Tax Credits in three rounds of It is one of severak national firms here with New Markets Tax Creditt allocations that it can use anywher in the country but that it historically has used in the St.
Louis area. , which received $135 million of the credits last anddeveloper , whicj received a $60 millioh allocation of credits in 2006, also have the ability to use theid federal New Markets Tax Credits across the country and coulf redirect them to states where matchingf incentives are available. "If we start to see a situatiojn where other states marry state new markett credits with theirfederal credits, it could have a detrimentalk impact on the amount of NMTC Missouri said Jonathan Goldstein, senior vice president with McCormacok Baron Salazar. Zack Boyers, senior vice presideng and director of historic and new market tax crediy investmentsfor U.S. Bank, said the credits alloww U.
S. Bank to tackles more difficult deals that otherwise would befinanciallyh impractical. Zajac has been rallying executives from those and other companiew to back legislation that would piggyback a new state tax credity with thefederal credit. Nearly identicalp bills are pending in the House andthe Senate. Sen. Scotyt Rupp, a Republican from Wentzville, is sponsoring the Senate version, which was votes out of the Ways and Means Committeeon Feb. 12, debatedd by the Senate in early March and now awaits a vote bythe Senate.
Rupp said the measurs is moving quickly enough throug the Senate that his only fear is that other legislatorxs seeking their own tax credit bills will tack them on to his In fact, another tax credit bill was addedr to the measure March 6. Rupp's bill places a $15 million annual cap on redeeminy the credits and does not allow the state credit on realestate deals. Companies using the credig would have to invest in existing businesse andcreate jobs, Rupp said. Rep. Ed Robb, a Republicab from Columbia, is sponsoring the Housr version, which was voted out of committee Feb. 28 and awaits actionj by the full House.
New Markets Tax Credita started appearingafter 2000, and Missouri has been amongv the top states receivinh investments tied to the credits. New Markets Tax Creditss are designedto kick-start development in economically distresseds areas by enticing additional privat e funding. Investors -- usuallhy banks, pension funds and other institutionsz -- that buy the tax credits receive a 39 percentt federal tax break on their investment over seven In addition toprivate firms, St. Louis City'z St. Louis Development Corp. has receivef the credits, and officials with the state of Missourij have said they plan to file theire own application for New Markets Tax Creditdthis year.
The New Markete measure also has the backing of the Missouri Chambee ofCommerce & Industry and the . "It would be an effectivee tool to leverage federal dollars and privats investmentsin Missouri," said Spence Jackson, deputy director of the Trey Davis, director of governmental affairds for the Missouri Chamber, said Rupp's bill has a chancw to pass, particularly because it caps Missouri's tax credits at $15 which would translate to about $270 million of new capitak invested in the state. "Wes want to create a packagse that attracts andretains businesses," he "At the least, this would allows us to catch up with our competitors.
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