Senate bill aims to revitalize Downtowns by incentivizing rehab of buildings for residential housing

ST. JOSEPH, Mo. (News-Press NOW) -- Upwards of $50 million in tax credits could be made available beginning next year under a new bill aiming to spur economic development and housing in Missouri's Downtown and Main Street areas.

A Senate committee for Economic and Workforce Development gave its approval to Senate Bill 896 on Jan. 21, sponsored by assistant minority floor leader Sen. Steven Roberts (D-St. Louis), called the "Revitalizing Missouri Downtowns and Main Streets Act."

Under the measure, projects meeting the criteria would receive tax credits between 25% and 30% for costs associated with redeveloping qualified non-residential office property to primarily residential use -- particularly upper floor housing -- as well as some commercial use. The measure would take effect for fiscal years beginning on or after Jan. 1, 2027 for eligible taxpayers.

The measure specifies 50% of credits would be reserved for converting buildings of more than 750,000 square feet and will be allocated to the annual limit over a period of 10 years, an additional 25% of the tax credits would be set aside solely for projects located in a qualified Missouri main street district.

Applicants would have to apply for credits through the Missouri Department of Economic Development, including showing proof of ownership or site control, project plans, anticipated costs, estimated project start dates and other reviews.

The Department would be tasked with determining the overall economic impact to the state from the rehabilitation of eligible property.

If approved, the act would sunset on Dec. 31, 2034, unless reauthorized by the General Assembly.