FY 2013 First Quarter Tax Credit Numbers: Redemptions Off to Slow Start

Total redemptions for tax credits in the first quarter of fiscal year 2013 were a little more than $60 million, less than half of the amount of redemptions from the same time period in fiscal year 2013.  Below are figures for specific programs.

Historic Preservation

The program authorized $28.5 million in tax credits and issued $28.6 million in tax credits; it is unlikely that the similarity in figures is related because of the gap in time between project approval and completion, which often is a few years.  Taxpayers redeemed $15.3 million in the first quarter, a little more than one-fourth of all of the credits redeemed in the first quarter.

Low Income Housing

Generally, the Missouri Housing Development Commission reports one year’s stream of credits from projects authorized in the past as issued in the first quarter of the fiscal year, but it looks like this did not occur in the first quarter of fiscal year 2013; there were only $2.8 million in credits issued and $34,500 authorized in the first quarter.  However, look for a large number of issuances in the second quarter, somewhere in the neighborhood of $140-150 million.  Redemptions under the program were $15.8 million for the quarter, a little more than one-quarter of the redemptions for all tax credits in the first quarter.  Redemptions under the program will spike in the fourth quarter when insurance companies file their insurance premium taxes.

Quality Jobs

The Department of Economic Development reported authorizing more than $30 million in the first quarter under the program; the agency also issued almost $10.8 million in the first quarter.  Almost $9 million was redeemed under the program, the vast majority of which, $7.2 million, was from retained withholding taxes of companies’ employees.

Neighborhood Assistance Program (NAP)

The Department of Economic Development authorized $4.1 million and issued a little less than $1 million under the program in the first quarter.  A little more than $1 million was redeemed.

Business Use Incentives for Large Scale Development (BUILD)

The Department of Economic Development, in concert with the Missouri Development Finance Board, authorized nearly $7.6 million and issued nearly $780,000 in tax credits in the first quarter.   A little more than $1.4 million was redeemed under the program.  Projects, which receive an authorization of tax credits, can receive an annual amount of credits for up to a 15-year period.