Courthouse (Lexington, MO)

Missouri’s Historic Tax Credit program is under fire by a group of senators who have sought to frame this debate in terms of “urban” versus “rural.” They cite examples such as the plans for the Ballpark Village in St. Louis to argue that the Historic Tax Credits only benefit big developers in urban centers.

The reality is, however, that HTCs have actually been used by communities across the state of Missouri. Cities and towns that have utilized HTCs include: Arcadia, Boonville, Butler, California, Cape Girardeau, Carthage, Chesterfield, Chillicothe, Clarksville, Columbia, Danville, Excelsior Springs, Farmington, Fayette, Ferguson, Florissant, Fulton, Glasgow, Hannibal, Hartsburg, Hermann, Independence, Jefferson City, Joplin, Kansas City, Kennett, King City, Kirkwood, Lee’s Summit, Lexington, Liberty, Louisiana, Manchester, Maplewood, Neosho, Nevada, New Haven, New Melle, North Kansas City, Osceola, Park Hills and Pilot Grove, through Rocheport, St. Charles, St. Joseph, St. Louis, Ste. Genevieve, Sedalia, Springfield, Trenton, University City, Webster Groves, Wellston, West Plains, Weston, Wildwood and Wright City.

According to the Missouri Coalition for Historic Preservation and Economic Development, between 1998 and 2006, more than 900 historic renovation projects were completed across the state of Missouri in 37 counties and 55 communities.

Courthouse Square Historic District (West Plains, MO)

Another important fact is that the vast majority of HTCs in Missouri have not gone to large-scale redevelopment projects, but rather to small homeowners and developers. The break-down goes like this: Over the past decade, only 11% of all projects spent over $5 million in rehabilitation, while 2/3rds were less than $500,000. The people that really benefit from this tax credit are not the big developers, but rather, the independent “mom and pop” in communities across the state.

Not only is the HTC program is utilized by developers statewide, but also large historic preservation projects in places like Springfield, Jeff City, KC, and St. Louis employ many laborers from small communities across Missouri. These renovation projects typically require a high level of skill, and therefore are some of the highest paying blue-collar jobs available.

If the HTC program receives a cap and becomes subject to annual appropriations, obtaining this tax credit will become a political process. Leaving the HTC uncapped allows for it to function through efficient markets; whereas putting a limit on it subjects the HTC to lobbyists and those with political power. Based on the “reformers” arguments, it is ironic to realize that capping the HTC would end up benefiting big developers, while limiting the availability of tax credits in small communities across Missouri.

It is vital to continue the historic tax credit program without any changes so that the credits may continue to spread to smaller communities throughout the state.

Southeast Missourian Newspaper Building (Cape Girardeau, MO)