May 1--JEFFERSON CITY -- Reworked legislation would dramatically reduce the maximum amount of tax credits the state can offer a Canadian aircraft maker to build an assembly plant in Kansas City.

If the current version of the bill wins committee approval, Sen. Charlie Shields will introduce a substitute bill capping the amount at $240 million over eight years. That is a far cry from the $880 million maximum over 22 years in current legislation.

Committee approval probably will come this morning.

Shields, a St. Joseph Republican who is handling the bill in the Senate, and officials from the Missouri Department of Economic Development shopped the new version of the bill to lawmakers on Wednesday after a committee rejected the current version.

The legislation is designed for Bombardier Aerospace, which is considering Kansas City International Airport for a $375 million assembly plant. The plant is expected to create up to 2,100 jobs and $5.9 billion in overall economic activity.

Reaction to the new legislation was cautiously optimistic.

Sen. Jason Crowell, a Cape Girardeau Republican who has criticized the proposal, said the presentation by the department and the new details in the bill put to rest many of the concerns he'd had since the proposal surfaced in March.

"I'm very appreciative that DED has seen fit to show us the actual numbers, which I've been asking for for the better part of three weeks of debate," Crowell said. "Now we're in a position where we can make a determination of whether or not the state can cash-flow this."

Earlier Wednesday, the Senate Fiscal Oversight Committee voted 5-2 against the bill, barring it from debate on the Senate floor.

With the substitute in hand Wednesday evening, committee Vice Chairman Brad Lager said the panel almost certainly would vote in favor of the bill, perhaps by a unanimous vote.

"We went from having a cap of $880 million to $240 million, so I think we're at least willing to say, 'OK, let's have some debate about it on the Senate floor,' " said Lager, a Savannah Republican. "It is a much different deal."

Committee member Rob Mayer, a Dexter Republican who voted against the bill Wednesday, said he probably would vote to move the bill to the floor today, although he hadn't decided his ultimate position on the proposal.

The legislation, House Bill 2393, creates a "mega-project" tax-credit program offering up to $40 million a year in tax credits for projects that invest $300 million in the state and create at least 1,000 jobs.

The substitute is meant to allay concerns from lawmakers that the legislation was too costly and not sufficiently detailed on the mechanism for repayment of the credits.

In addition to the cap on credits that can be awarded, the new version includes a "claw back" provision, allowing the state to reclaim tax credits issued if the company fails to meet the requirements of the deal and stipulates a specific rate of return at which the company must repay the tax credits.

Repayment of the tax credits has been an element of the legislation since it was introduced.

The substitute bill also removes language forbidding state officials and their relatives from working for Bombardier.

Greg Steinhoff, director of economic development, said the state had been engaged in "pretty intense" discussions with Bombardier that have clarified what the state's offer will look like. That information was included in the substitute.

Pierre Beaudoin, the top executive of Bombardier, the parent company of Bombardier Aerospace, was in Kansas City on Wednesday scouting the proposed site for the plant. On Tuesday night he dined with Gov. Matt Blunt and House and Senate leaders at the Governor's Mansion.

Bombardier officials confirmed Beaudoin's visit but declined further comment.

The Canadian executive was greeted by a large billboard along Interstate 29 on airport property emblazoned with French and English welcomes and an illustration of Bombardier's planned C Series aircraft. The city's Aviation Department paid about $1,300 to have the sign up for two days, a spokesman said.

Beaudoin also toured the 10-year-old Harley-Davidson motorcycle plant. Local development officials have said the success of the Harley plant was a major factor in Bombardier considering Kansas City.

"This was an outstanding day," said Bob Marcusse, Kansas City Area Development Council president and CEO.

Shields, who was among the legislative leaders who dined with Beaudoin and the governor, said Bombardier executives were very interested in Missouri.

"The keys are labor costs and productivity, and the currency values," Shields said. "This is a project they are passionate about. They believe it's the future of their company."

To reach Jason Noble, call 573-634-3565 or send e-mail to [email protected] To reach Kevin Collison, call 816-234-4289 or send e-mail to [email protected]

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