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(UPDATE) Senate Gives Final Okay To Tax Credit Overhaul

JEFFERSON CITY, Mo. (AP) – Missouri senators gave final approval to a sweeping revision to the state’s tax credit programs on Wednesday.  The measure was immediately questioned by House leaders,who were expected to make major changes to the measure before putting it up before the full House.

The differences between the two chambers offered a clear sign that Missouri’s special legislative session will stretch into a third week as lawmakers struggle for consensus on its marquee issue.

The legislation approved 26-8 by the Senate would scale back or eliminate many of Missouri’s existing tax credits for businesses and social causes and use some of the savings to finance new incentives for particular businesses.  The plan would consolidate several current incentives under the umbrella of a new “Compete Missouri” program overseen by the Department of Economic Development.

The tax-credit restructuring is backed by Democratic Gov. Jay Nixon, who summoned lawmakers into special session to consider revamping Missouri’s business incentives.

House Speaker Steven Tilley, R-Perryville, said Wednesday that his chamber would make changes to the Senate version before bringing it up before the full House, likely sometime next week.

Senators dramatically scaled back  a tax-credit proposal intended to spur international cargo trade at the St. Louis airport.

The revamped Senate legislation also drops a provision that would have repealed a tax credit for low-income elderly and disabled residents who live in rental housing.


Another Senate vote is needed to send the bill to the House.

The House is likely to change the bill again so that it more closely resembles a deal struck among Republican House and Senate leaders before the special session began.

St. Louis Mayor Francis Slay says the Senate version is insufficient to achieve the goal of transforming Lambert-St. Louis International Airport into a hub for international trade.

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