McCaskill's Husband Makes Millions Flipping Government Tax Credits

Husband used government program for poor to build own fortune

Since Claire McCaskill joined the Senate, her husband Joseph Shepard has made at least $11 million through a business that buys up tax credits awarded to Missouri affordable housing developers and sells them to high-income entities seeking tax relief.

Shepard's company, the Missouri Tax Credit Fund, operates within the Low-Income Housing Tax Credit (LIHTC), a $9 billion a year federal program that awards tax credits to developers building qualified affordable housing projects. The LIHTC program is designed for developers in need of cash to attract investors for projects by offering them tax credits.

Analysis by policy institutions and government investigators, however, has found the LIHTC program to be inefficient, with much of the money—intended for affordable housing—ending up in the pockets of middlemen syndicators who connect developers with investors, earning lofty fees from both sides.

Shepard plays the lucrative role of syndicator and has made millions off the government program.

Records available on the Missouri secretary of state's website show Shepard’s company acquired tax credits awarded to at least 57 different affordable housing projects in Missouri between 2006 and 2017. Together, the 57 projects were awarded $273.3 million in LIHTCs, a review of the state's tax credit database found.

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