State bills would match New Markets Tax Credits - Silicon Valley / San Jose Business Journal:

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About 16 other statew have similar laws eithee on the books or pendinhg intheir legislatures, said Scott Zajac, seniot managing director of Advantage Capital Partners in St. Missouri, however, lacks a comparable state tax credit, which is promptingh companies such as Advantage to consider shiftingf projects to other statesa that couple federal New Markets Tax Creditws with their own state he said.
Advantage, a venture and private equit capital firm withofficed here, has received $230 million in federal New Marketsx Tax Credits in three rounds of It is one of several nationakl firms here with New Markets Tax Crediyt allocations that it can use anywherse in the country but that it historicallgy has used in the St. Louis , which received $135 million of the credite last year, and developer , which received a $60 million allocation of creditsin 2006, also have the ability to use their federal New Markets Tax Credita across the country and couls redirect them to states where matching incentivee are available.
"If we start to see a situatiojn where other states marry state new markert credits with theirfederal credits, it could have a detrimenta impact on the amount of NMTC Missouri said Jonathan Goldstein, senior vice president with McCormaci Baron Salazar. Zack Boyers, senior vice presidenft and director of historic and new marke t tax credit investmentsfor U.S. said the credits allow U.S. Bank to tackle more difficulgt deals that otherwise would befinancially impractical. Zajax has been rallying executives from those and othee companies to back legislation that would piggyback a new statew tax credit with thefederal credit. Nearl y identical bills are pending in the Housse andthe Senate.
Sen. Scott a Republican from Wentzville, is sponsoring the Senate version, which was voted out of the Ways and Meansx Committeeon Feb. 12, debated by the Senate in early Marcu and now awaits a vote bythe Senate. Rupp said the measurwe is moving quickly enough through the Senate that his only fear is that othe r legislators seeking their own tax credit billsd will tack them on tohis bill. In fact, another tax credif bill was added to the measureMarchn 6. Rupp's bill places a $15 milliomn annual cap on redeeming the credits and does not allows the state credit on realestate deals. Companieds using the credit would have to invest in existing businesses andcreatr jobs, Rupp said. Rep.
Ed Robb, a Republican from Columbia, is sponsoring the Housde version, which was voted out of committede Feb. 28 and awaits action by the full House. New Marketes Tax Credits started appearing after and Missouri has been among the top statesz receiving investments tied to the New Markets Tax Credits are designedto kick-start developmenr in economically distressed areas by enticing additional private funding. Investors -- usuall banks, pension funds and other institutionzs -- that buy the tax credits receivse a 39 percent federal tax break on theid investment overseven years. In additiobn to private firms, St. Louixs City's St.
Louis Development has receivedthe credits, and officials with the state of Missour have said they plan to file theire own application for New Markets Tax Creditz this year. The New Markets measure also has the backint of the Missouri Chamber ofCommerce & Industry and the . "It would be an effective tool to leveragr federal dollars and private investmentsin Missouri," said Spence Jackson, deput director of the department. Trey Davis, director of governmentakl affairs for the Missouri said Rupp's bill has a chancew to pass, particularly because it caps Missouri' s tax credits at $15 which would translate to abougt $270 million of new capitall invested in the state.
"We want to create a packager that attracts andretaind businesses," he said. "At the least, this woulrd allow us to catc up withour competitors."