Kinder, Black Caucus critical of Nixon low-income tax credit position

111118_kinder_gavel_ap_465– Republican Lt. Gov. Peter Kinder joined African-American Democratic lawmakers on Monday who were critical of Gov. Jay Nixon for his deal with a handful of senators to delay issuance of low-income housing tax credits in order to avert a filibuster of his Boeing incentive package.

During a news conference at the state Capitol, Kinder and members of the Missouri Legislative Black Caucus said while they were supportive of the effort to pass tax incentives with hopes to entice The Boeing Company to land its new 777x commercial airliner production line in Missouri, they do not believe delaying tax credits for low-income housing ought to be tied up in the debate.

“The Boeing bill passed with an overwhelming bipartisan majority in the House and Senate, and I support that effort completely,” Kinder said. “But there is no reason to tie that bill to these MHDC projects, which are crucial to low-income families and seniors in Missouri. This was strictly a political move by the governor to quell potential opposition.”

Nixon met with a handful of Republican senators early in the week of Special Session where he pledged to make an honest effort at long-sought tax credit reform in the 2014 session. His first concession came with the low-income tax credit delays.

On December 6, hours after the Missouri House sent the Boeing incentive package to the governor’s desk, top aides to Nixon were in Columbia where they advised the Missouri Housing Development Commission to delay issuance of some $13.7 million in low-income housing tax credit requests. The developers were given the green light, but were told they would not receive the tax credit until March. The cash is tied up – now the developers are playing a waiting game.

“If you’re a developer, you already have resources invested in these projects,” Kinder said. “For developers and lenders, time is money, and by delaying the funding contractors are in limbo while construction jobs are lost. This is not how business should be conducted by the State of Missouri.”