Missouri House Bill HB568

Missouri 2025 Regular Session

• Introduced: 1/8/25
• Refer: 5/15/25

Caption

Modifies provisions of the Missouri empowerment scholarship accounts program tax credit

Impact

The implementation of HB 568 is expected to have a significant impact on state financial laws by changing how tax credits for educational contributions are calculated and claimed. By allowing taxpayers to receive credits that are fully transferable and applicable to their entire contributions, the bill strives to encourage more individuals and businesses to contribute towards educational initiatives. The cumulative cap on credits allocated in a calendar year serves to maintain a level of control over the total tax incentives provided under this program.

Summary

House Bill 568 aims to modify the existing provisions of the Missouri Empowerment Scholarship Accounts Program tax credit. The bill introduces new regulations for taxpayers making contributions to educational assistance organizations, allowing them to claim a tax credit equivalent to 100% of their contributions, capped at 50% of their tax liability for the year. This change promotes support for educational initiatives by reducing the financial burden on those contributing to such organizations, essentially incentivizing donations meant to aid educational scholarships.

Contention

Noteworthy areas of contention surrounding HB 568 include the potential impact on state tax revenues, as the substantial increase in allowable tax credits could result in decreased revenue for the state in the short term. Opponents of the bill may raise concerns regarding the sustainability of such tax credits and their long-term impact on funding for public education. This discussion reflects ongoing debates about the balance between supporting private educational establishments and ensuring adequate funding for public educational systems.