Does Missouri Really Need Another Tax Credit Program?
Missouri is one step closer to having another tax credit program, the angel investment incentive tax credit. This tax credit program has some rather concerning features. For instance, certain industries are automatically excluded from consideration (business consultants and insurance companies, to name two). And for those businesses not excluded from the tax credit, the government must still find that they have “a reasonable chance of success.” Since when is the government good at determining what will be successful?
But wait, there is more. This tax credit has the potential for $6 million in new tax credits each year, which means that Missouri revenue could fall by as much. An amount of $6 million might sound insignificant, but this year, Missouri’s 60-plus tax credit programs are expected to dig an $835 million hole in state revenue. That $6 million figure is just less than half the average redemptions per tax credit program. Combined, these programs add up. Could this tax credit be the proverbial straw that breaks the Missouri budget?