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Mo. Senate passes renewal of investor tax credit

JEFFERSON CITY, Mo. (AP) -- The Missouri Senate has passed legislation to renew a tax break for investors in businesses located in low-income areas.

Senators voted 23-11 Tuesday for a bill that would extend the New Markets Tax Credit program for an additional six years. The program was scheduled to expire this year

The initiative rewards investors in private equity funds that help finance small businesses in areas with high poverty rates or lower-than-average family incomes.

Missouri is one of about a dozen states with similar programs. They all mirror a federal New Markets program, which is to allocate about $3.5 billion of tax credits this year

The Missouri legislation would allow $15 million of tax credits annually. The bill now goes to the House.