(Jefferson City, MO) -- Tax credit reform following the failed Mamtek deal in Moberly has likely died in the legislative process.
Wednesday, the Senate attached language that would limit the historic preservation tax credit to the bill that made changes to economic development rules. State Sen. Jim Lembke, R-St. Louis, who led the tax credit reform bill through the Senate, said the changes are necessary.
"We saw an opportunity to take a small step forward in reform, and that's what we did with putting a $75 million cap on historic tax credits," said Lembke.
The cap, however, likely kills the bill in the House, where lawmakers favor the historical preservation tax credit.
"No tax credit is going to pass out of the Senate without not being connected to a reform that adds savings to the bottom line," Lembke said.
The Senate also attached language that would create a tax credit for groups sponsoring large scale athletic events in the state.
Lammakers began their focus on tax credit reforms after a deal failed late last year with Mamtek, a China-based manufacturer of artificial sweetener. The company defaulted on bond payments for the funding of a $60 million factory, leaving the city of Moberly on the hook to pay back the loan.
The company said the factory would have employed more than 600 people, but those jobs never came to fruition. To help the company locate within the city, Moberly financed about $40 million in bonds to build and equip the factory where Mamtek was to set up shop. The company had applied for state tax credits, which they would have received only if the jobs were created.