Journal Article

Transferable tax credits in Missouri: an analytical review

Abstract: In 2005, Missouri had 53 legally authorized tax credit programs. In this paper, the authors assemble basic information on all of these programs and further analyze the six largest (by tax credits issued) that include freely transferable credits. Their analysis focuses on the institutional features of these programs, the kinds of market failures or disparities they may address, and whether the design of each program is consistent with its economic rationale. The authors also consider whether the evaluation of each program by the state is consistent with its economic rationale. They conclude with a brief discussion of the transactions prices for the credits on which they have data and whether making the tax credits refundable as well as transferable could reduce the transactions costs associated with these programs.

Keywords: Missouri; Tax credits; Economic development;

Status: Published in The Third Annual Conference of the Business & Economics Research Group (BERG), in St. Louis, June 2007.

Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Regional Economic Development

Publication Date: 2007

Issue: Nov

Pages: 53-74