Establishes the Revitalizing Missouri Downtowns and Main Streets Act
SB35 establishes the “Revitalizing Missouri Downtowns and Main Streets Act,” a new state tax credit program aimed at encouraging the conversion of older office and commercial buildings into residential and mixed-use space. The bill creates two primary credits: a 25% credit for qualified conversion expenditures on eligible buildings generally, and a 30% credit for upper-floor housing projects located in qualified Missouri Main Street districts. To qualify, a building generally must have been in service at least 25 years before conversion and be substantially converted from office use to predominantly residential use, with some allowance for retail, commercial, and accessory parking.
The bill sets up an application, approval, and final certification process administered by the Missouri Department of Economic Development, with the Department of Revenue handling issuance and transfer mechanics. Credits may be carried back three years or forward ten years, and they may be sold, transferred, or assigned. The bill also allows phased projects and provides special rules for large projects over 750,000 square feet, including reserved portions of the annual credit cap and the ability to spread allocations over up to ten years if certain conditions are met.
SB35 adds six new sections to Chapter 99, RSMo, creating a statewide tax credit program for downtown and Main Street redevelopment. It authorizes up to $50 million in credits per fiscal year, with portions reserved for very large projects and for upper-floor housing in Main Street districts, and it includes inflation adjustment, priority-of-application rules, recapture/rescission provisions, and a sunset date of December 31, 2033 unless reauthorized. The bill affects property owners, developers, lenders, and investors involved in adaptive reuse and mixed-use redevelopment, while also directing state agencies to administer, certify, track, and report on the program’s economic impact.
The available vote history suggests the bill had meaningful but not overwhelming support in the Senate, passing third reading 20-13. No committee transcript excerpts were provided, so the record here does not show detailed debate, but the vote indicates the measure was supported by a majority while drawing substantial opposition. Overall, the bill appears to have been viewed as a redevelopment incentive with enough support to advance, but not broad consensus.
Likely points of contention include the size of the annual tax credit cap, the fiscal cost to the state, and whether the credits are targeted effectively toward downtown revitalization versus broader real estate development. The bill’s transferability and ability to offset up to 100% of state tax liability may also have raised concerns about revenue impact and marketability of credits. Opponents may have questioned the reserved allocations for large projects and Main Street housing, while supporters likely emphasized adaptive reuse, downtown housing creation, and economic development in older commercial corridors.