TAX CREDITS SEEN AS BOOST FOR RIVER CAMPUS

Southeast Missouri State University's River Campus received a major boost this week from one Missouri agency.

The Missouri Development Finance Board will issue $5 million in state tax credits to individuals and businesses making donations to the River Campus project. The tax credits will be stretched out over five years.

It's always tough to raise large dollars for a project -- especially since the River Campus is only a vision on paper at this point. But these tax credits could provide a real incentive, especially for businesses saddled with high state taxes.

It could dramatically improve both individual and corporate after-tax situations.

Here's an illustration:

An individual with a 39.6 percent federal tax rate and state tax rate of 6 percent wants to give $100,000. Without this program, the federal tax savings would be $37,224, and the state tax deduction would be $6,000. The person's net after-tax cost of the $100,000 gift would be $56,776.

Take that same individual and apply the tax-credit program. The federal tax deduction drops to $17,424, and there is still a deduction of $6,000 for state taxes. Add to that a $50,000 tax credit off the top of the Missouri tax bill, and the net after-tax cost of the $100,000 gift drops to $26,576.

Of course, this scenario would change for different tax rates. The University Foundation office can provide details to interested contributors.

The university hopes to raise between $12 million and $15 million in private contributions for the $36 million River Campus project. The university has secured $4.6 million from the state and hopes to land another $13.2 million in state dollars next year.

The remaining money comes from the city with money voters approved from the motel-restaurant tax.

The fact the new River Campus advisory board has begun meeting may also help to define the scope and mission of the project. Ultimately, that too will help in fund raising as area residents gain more insight into plans for the university's proposed visual and performing arts center.

The six-member board is appointed by the city and university.

It was good to see spirited back-and-forth discussions by the new board members at their first meeting. Their interest, enthusiasm and scrutiny of the project will help to ensure its success.

Slowly, but surely, the picture of the River Campus is coming into sharper focus.