HB2764--FIRST-TIMEBUSINESSOWNERSAVINGSACCOUNTACT
SPONSOR: Johnson
FIRST-TIMEBUSINESSOWNERTAXDEDUCTION(Section143.1155,RSMo)
ThebillprovidesthatfortaxyearsbeginningJanuary1,2023,a
taxpayerisallowedadeductionfor50%ofthecontributionstoa
first-timebusinessownersavingsaccountinthetaxyearofthe
contribution. Theamountofthedeductionclaimedshallnotexceed
thetaxpayer'sMissouriadjustedgrossincome(AGI).Annual
contributionsmadeintothesavingsprogramof$800per
participatingtaxpayeror$1,600formarriedindividualsfiling
jointly,shallbedeductedfromthegrossincometodeterminethe
MissouriAGI.Further,provisionsrelatingtoassetsandincome
arespecifiedinthebill.
TheprovisionsunderSection143.1155,sunsetonDecember31,six
yearsfromtheeffectivedate.
FIRST-TIMEBUSINESSOWNERSAVINGSACCOUNTACT(Sections443.1011to
443.1017)
BeginningJanuary1,2023,anyindividualmayopenanaccountwith
afinancialinstitutiondesignatingitasafirst-timebusiness
ownersavingsaccounttopayorbereimbursedforqualified
expensesforstartinganewbusiness. Thebilldefines"First-time
businessowner"asanindividualwhohasneverownedabusinessand
isamemberofaminority. Thebillspecifiesthatthemaximum
annualcontributionis$1,600foranindividualand$3,200for
accountholderswhofileajointtaxreturn.Themaximum
contributionlimitforalltaxyearsis$20,000andthemaximum
totalamountinthesavingsaccountis$30,000.
Fundsinthesavingsaccountmaybeusedonlyforeligibleexpenses
thatresultinthestartupofanewbusinessandasfurther
detailedinthebill.Similarly,thebillspecifiesthe
requirementsforwithdrawaloffundsandrecaptureandpenalties.
TheDepartmentofRevenue(DOR)isauthorizedtocreateformsfor
anaccountholdertoannuallyreportinformation,includinghowthe
moneyswithdrawnfromtheaccountareused,andtoidentify
supportingdocumentationtobemaintained.
Thebillprovidesthatafinancialinstitutionisnotrequiredto
designateanaccountasafirst-timebusinessownersavings
account,tracktheuseofmoneyswithdrawnorreportinformationto
DORorothergovernmentalagency. ThisbillissimilartoHB1220(2021).