JEFFERSON CITY, Mo. (KY3/Edited Press Release) – Missouri State Auditor Nicole Galloway released a review of the state’s tax credit programs Thursday.
The exam is required by state law. It compiles tax credit redemptions over the past five years and future obligations. Tax credits are generally a dollar-for-dollar reduction in the amount of state taxes otherwise owed by taxpayers.
In fiscal years 2017 to 2021, tax credits were authorized, issued or refunded through 58 different tax credit programs. Taxpayers recouped $2.9 billion in tax credits during this period. The review also found that as of June 30, 2020, an additional $2.8 billion in tax credits were authorized, but not refunded.
According to the Auditor’s Office, tax credit programs reduced personal income tax collections by $1.148 billion between fiscal years 2017 and 2020. Total tax credit redemptions continued to decline. to augment. Buyouts in 2021 topped $600 million for only the second time in state history. The majority of tax credit redemptions over the past five years have reduced personal income and source deductions.
The top five tax credit programs by total refunds during the reporting period were: Senior Property Tax, Missouri Works, Missouri Quality Jobs, Low Income Housing, and Historic Preservation. Some tax credits have carry-forward provisions, which allow tax credits that were authorized or issued in previous years to be refunded over a long period of time.
For a closer look at the review, CLICK HERE.
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