Tax credit discussion looks to maintain Capitol

Missouri Senate President Pro Tem Ron Richard acknowledged last week he was talking about a bill that really won’t be debated until next year.

However, he wants state lawmakers to create a Capitol Complex Tax Credit that would be used to “do some additional work after the bonding (money) is gone.”

He explained to the Senate’s Jobs, Economic Development and Local Government Committee last Wednesday: “We’re going to need additional funds for the artwork and for additional projects inside this building — and also, the governor’s mansion and the MoDOT Building and even possibly the Supreme Court.”

Richard’s bill would also whittle away at some of the existing Historic Preservation tax cuts that have lots of local support at the same time they have critics among conservative lawmakers.

“The bill would cut historic tax credits by 10 million and move $20 million into a new fund to be used to fundraise for renovations at the Capitol Complex,” he said. “There also would be a fee of 1 percent on historic tax credits to help with additional revenues.

“Ninety percent of the donations received, along with all fees collected from the credits issued by the Department of Economic Development, shall be deposited in a rehabilitation and renovation account.

“And 7.5 percent will be placed in a maintenance account. The remaining 2.5 percent will be used for soliciting donations, advertising, promotion of the fund and administrative costs.”

Richard said supporters of the proposal “believe there’s a number of foundations, trusts and individuals that have the financial ability and will want to help on this to save general revenue (so) we’ll be able to get this Capitol Complex repaired and in the shape it was when it was built at the turn of the 20th century.”

Jim Farrell, representing the state’s Historical Alliance, offered the only testimony on the proposal, thanking Richard for introducing it.

“There are a couple provisions in there — as it relates to tax credits on the large projects and smaller projects that are impacted in a lot of the smaller communities and neighborhoods,” Farrell testified.

“We’d like to work with (Sen. Richard) in looking at that language so that we have the least impact on some of these neighborhoods that need the tax credits.”

Richard later told the News Tribune he wanted to get the conversation started now, even though he expects the real work on the bill won’t be finished until the 2017 legislative session.

He said the Senate’s Administration Committee has money available for smaller things, and the state bond money approved last year is paying for some large projects.

“We’re taking care now of the infiltration of the water” around the base of the building, Richard said, referring to the construction project that is removing the Capitol’s south steps and working on water leaks around the foundation on the south, east and north sides of the building.

“These are (other) big-picture items,” he added. “We’ve got millions and millions of dollars of artwork that needs to be repaired” because of water leaks and other damage caused by the way people have used the Capitol in its first century.

Richard’s proposal also would provide money for the Capitol Complex’s other three oldest buildings — the Mansion, built in 1871, and the Transportation and Supreme Court buildings erected in the early years of the 20th Century.

Richard doesn’t envision his proposal being needed for the younger Capitol Complex buildings — the Broadway Building, built in the 1930s; Jefferson Building, erected in the early 1950s; or the Truman Building, added in the late-1970s.