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Missouri House Bill HB2457

Missouri 2024 Regular Session

Missouri House Bill HB2457 Compare Versions

Only one version of the bill is available at this time.
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11 SECONDREGULARSESSION
22 HOUSEBILLNO.2457
33 102NDGENERALASSEMBLY
44 INTRODUCEDBYREPRESENTATIVEJUSTUS.
55 3988H.01I DANARADEMANMILLER,ChiefClerk
66 ANACT
77 Torepealsection143.121,RSMo,andtoenactinlieuthereofonenewsectionrelatingto
88 researchandexperimentationcosts.
99 BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
1010 SectionA.Section143.121,RSMo,isrepealedandonenewsectionenactedinlieu
1111 2thereof,tobeknownassection143.121,toreadasfollows:
1212 143.121.1.TheMissouriadjustedgrossincomeofaresidentindividualshallbethe
1313 2taxpayer'sfederaladjustedgrossincomesubjecttothemodificationsinthissection.
1414 3 2.Thereshallbeaddedtothetaxpayer'sfederaladjustedgrossincome:
1515 4 (1)Theamountofanyfederalincometaxrefundreceivedforaprioryearwhich
1616 5resultedinaMissouriincometaxbenefit.Theamountaddedpursuanttothissubdivision
1717 6shallnotincludeanyamountofafederalincometaxrefundattributabletoataxcredit
1818 7reducingataxpayer'sfederaltaxliabilitypursuanttoPublicLaw116-136or116-260,enacted
1919 8bythe116thUnitedStatesCongress,forthetaxyearbeginningonorafterJanuary1,2020,
2020 9andendingonorbeforeDecember31,2020,anddeductedfromMissouriadjustedgross
2121 10incomepursuanttosection143.171.Theamountaddedunderthissubdivisionshallalsonot
2222 11includeanyamountofafederalincometaxrefundattributabletoataxcreditreducinga
2323 12taxpayer'sfederaltaxliabilityunderanyotherfederallawthatprovidesdirecteconomic
2424 13impactpaymentstotaxpayerstomitigatefinancialchallengesrelatedtotheCOVID-19
2525 14pandemic,anddeductedfromMissouriadjustedgrossincomeundersection143.171;
2626 15 (2)Interestoncertaingovernmentalobligationsexcludedfromfederalgrossincome
2727 16by26U.S.C.Section103oftheInternalRevenueCode,asamended.Theprevioussentence
2828 17shallnotapplytointerestonobligationsofthestateofMissourioranyofitspolitical
2929 EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
3030 intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18subdivisionsorauthoritiesandshallnotapplytotheinterestdescribedinsubdivision(1)of
3131 19subsection3ofthissection.Theamountaddedpursuanttothissubdivisionshallbereduced
3232 20bytheamountsapplicabletosuchinterestthatwouldhavebeendeductibleincomputingthe
3333 21taxableincomeofthetaxpayerexceptonlyfortheapplicationof26U.S.C.Section265ofthe
3434 22InternalRevenueCode,asamended.Thereductionshallonlybemadeifitisatleastfive
3535 23hundreddollars;
3636 24 (3)Theamountofanydeductionthatisincludedinthecomputationoffederal
3737 25taxableincomepursuantto26U.S.C.Section168oftheInternalRevenueCodeasamended
3838 26bytheJobCreationandWorkerAssistanceActof2002totheextenttheamountdeducted
3939 27relatestopropertypurchasedonorafterJuly1,2002,butbeforeJuly1,2003,andtothe
4040 28extenttheamountdeductedexceedstheamountthatwouldhavebeendeductiblepursuantto
4141 2926U.S.C.Section168oftheInternalRevenueCodeof1986asineffectonJanuary1,2002;
4242 30 (4)Theamountofanydeductionthatisincludedinthecomputationoffederal
4343 31taxableincomefornetoperatinglossallowedby26U.S.C.Section172oftheInternal
4444 32RevenueCodeof1986,asamended,otherthanthedeductionallowedby26U.S.C.Section
4545 33172(b)(1)(G)and26U.S.C.Section172(i)oftheInternalRevenueCodeof1986,as
4646 34amended,foranetoperatinglossthetaxpayerclaimsinthetaxyearinwhichthenet
4747 35operatinglossoccurredorcarriesforwardforaperiodofmorethantwentyyearsandcarries
4848 36backwardformorethantwoyears.Anyamountofnetoperatinglosstakenagainstfederal
4949 37taxableincomebutdisallowedforMissouriincometaxpurposespursuanttothissubdivision
5050 38afterJune18,2002,maybecarriedforwardandtakenagainstanyincomeontheMissouri
5151 39incometaxreturnforaperiodofnotmorethantwentyyearsfromtheyearoftheinitialloss;
5252 40and
5353 41 (5)FornonresidentindividualsinalltaxableyearsendingonorafterDecember31,
5454 422006,theamountofanypropertytaxespaidtoanotherstateorapoliticalsubdivisionof
5555 43anotherstateforwhichadeductionwasallowedonsuchnonresident'sfederalreturninthe
5656 44taxableyearunlesssuchstate,politicalsubdivisionofastate,ortheDistrictofColumbia
5757 45allowsasubtractionfromincomeforpropertytaxespaidtothisstateforpurposesof
5858 46calculatingincomefortheincometaxforsuchstate,politicalsubdivisionofastate,orthe
5959 47DistrictofColumbia;
6060 48 (6)ForalltaxyearsbeginningonorafterJanuary1,2018,anyinterestexpensepaid
6161 49oraccruedinaprevioustaxableyear,butallowedasadeductionunder26U.S.C.Section
6262 50163,asamended,inthecurrenttaxableyearbyreasonofthecarryforwardofdisallowed
6363 51businessinterestprovisionsof26U.S.C.Section163(j),asamended.Forthepurposesofthis
6464 52subdivision,aninterestexpenseisconsideredpaidoraccruedonlyinthefirsttaxableyearthe
6565 53deductionwouldhavebeenallowableunder26U.S.C.Section163,asamended,ifthe
6666 54limitationunder26U.S.C.Section163(j),asamended,didnotexist;
6767 HB2457 2 55 (7)ForalltaxyearsbeginningonorafterJanuary1,2022,theamountdeducted
6868 56bythetaxpayerunder26U.S.C.Section174(a)(2)(B),asamended,forthetaxyear.
6969 57 3.Thereshallbesubtractedfromthetaxpayer'sfederaladjustedgrossincomethe
7070 58followingamountstotheextentincludedinfederaladjustedgrossincome:
7171 59 (1)Interestreceivedondepositsheldatafederalreservebankorinterestordividends
7272 60onobligationsoftheUnitedStatesanditsterritoriesandpossessionsorofanyauthority,
7373 61commissionorinstrumentalityoftheUnitedStatestotheextentexemptfromMissouri
7474 62incometaxespursuanttothelawsoftheUnitedStates.Theamountsubtractedpursuantto
7575 63thissubdivisionshallbereducedbyanyinterestonindebtednessincurredtocarrythe
7676 64describedobligationsorsecuritiesandbyanyexpensesincurredintheproductionofinterest
7777 65ordividendincomedescribedinthissubdivision.Thereductionintheprevioussentence
7878 66shallonlyapplytotheextentthatsuchexpensesincludingamortizablebondpremiumsare
7979 67deductedindeterminingthetaxpayer'sfederaladjustedgrossincomeorincludedinthe
8080 68taxpayer'sMissouriitemizeddeduction.Thereductionshallonlybemadeiftheexpenses
8181 69totalatleastfivehundreddollars;
8282 70 (2)Theportionofanygain,fromthesaleorotherdispositionofpropertyhavinga
8383 71higheradjustedbasistothetaxpayerforMissouriincometaxpurposesthanforfederal
8484 72incometaxpurposesonDecember31,1972,thatdoesnotexceedsuchdifferenceinbasis.If
8585 73againisconsideredalong-termcapitalgainforfederalincometaxpurposes,themodification
8686 74shallbelimitedtoone-halfofsuchportionofthegain;
8787 75 (3)Theamountnecessarytopreventthetaxationpursuanttothischapterofany
8888 76annuityorotheramountofincomeorgainwhichwasproperlyincludedinincomeorgainand
8989 77wastaxedpursuanttothelawsofMissouriforataxableyearpriortoJanuary1,1973,tothe
9090 78taxpayer,ortoadecedentbyreasonofwhosedeaththetaxpayeracquiredtherighttoreceive
9191 79theincomeorgain,ortoatrustorestatefromwhichthetaxpayerreceivedtheincomeor
9292 80gain;
9393 81 (4)Accumulationdistributionsreceivedbyataxpayerasabeneficiaryofatrusttothe
9494 82extentthatthesameareincludedinfederaladjustedgrossincome;
9595 83 (5)Theamountofanystateincometaxrefundforaprioryearwhichwasincludedin
9696 84thefederaladjustedgrossincome;
9797 85 (6)Theportionofcapitalgainspecifiedinsection135.357thatwouldotherwisebe
9898 86includedinfederaladjustedgrossincome;
9999 87 (7)Theamountthatwouldhavebeendeductedinthecomputationoffederaltaxable
100100 88incomepursuantto26U.S.C.Section168oftheInternalRevenueCodeasineffecton
101101 89January1,2002,totheextentthatamountrelatestopropertypurchasedonorafterJuly1,
102102 902002,butbeforeJuly1,2003,andtotheextentthatamountexceedstheamountactually
103103 HB2457 3 91deductedpursuantto26U.S.C.Section168oftheInternalRevenueCodeasamendedbythe
104104 92JobCreationandWorkerAssistanceActof2002;
105105 93 (8)ForalltaxyearsbeginningonorafterJanuary1,2005,theamountofanyincome
106106 94receivedformilitaryservicewhilethetaxpayerservesinacombatzonewhichisincludedin
107107 95federaladjustedgrossincomeandnototherwiseexcludedtherefrom.Asusedinthissection,
108108 96"combatzone"meansanyareawhichthePresidentoftheUnitedStatesbyExecutiveOrder
109109 97designatesasanareainwhichArmedForcesoftheUnitedStatesareorhaveengagedin
110110 98combat.Serviceisperformedinacombatzoneonlyifperformedonorafterthedate
111111 99designatedbythePresidentbyExecutiveOrderasthedateofthecommencingofcombat
112112 100activitiesinsuchzone,andonorbeforethedatedesignatedbythePresidentbyExecutive
113113 101Orderasthedateoftheterminationofcombatantactivitiesinsuchzone;
114114 102 (9)ForalltaxyearsendingonorafterJuly1,2002,withrespecttoqualifiedproperty
115115 103thatissoldorotherwisedisposedofduringataxableyearbyataxpayerandforwhichan
116116 104additionalmodificationwasmadeundersubdivision(3)ofsubsection2ofthissection,the
117117 105amountbywhichadditionalmodificationmadeundersubdivision(3)ofsubsection2ofthis
118118 106sectiononqualifiedpropertyhasnotbeenrecoveredthroughtheadditionalsubtractions
119119 107providedinsubdivision(7)ofthissubsection;
120120 108 (10)ForalltaxyearsbeginningonorafterJanuary1,2014,theamountofany
121121 109incomereceivedaspaymentfromanyprogramwhichprovidescompensationtoagricultural
122122 110producerswhohavesufferedalossastheresultofadisasteroremergency,includingthe:
123123 111 (a)LivestockForageDisasterProgram;
124124 112 (b)LivestockIndemnityProgram;
125125 113 (c)EmergencyAssistanceforLivestock,Honeybees,andFarm-RaisedFish;
126126 114 (d)EmergencyConservationProgram;
127127 115 (e)NoninsuredCropDisasterAssistanceProgram;
128128 116 (f)Pasture,Rangeland,ForagePilotInsuranceProgram;
129129 117 (g)AnnualForagePilotProgram;
130130 118 (h)LivestockRiskProtectionInsurancePlan;
131131 119 (i)LivestockGrossMarginInsurancePlan;
132132 120 (11)ForalltaxyearsbeginningonorafterJanuary1,2018,anyinterestexpensepaid
133133 121oraccruedinthecurrenttaxableyear,butnotdeductedasaresultofthelimitationimposed
134134 122under26U.S.C.Section163(j),asamended.Forthepurposesofthissubdivision,aninterest
135135 123expenseisconsideredpaidoraccruedonlyinthefirsttaxableyearthedeductionwouldhave
136136 124beenallowableunder26U.S.C.Section163,asamended,ifthelimitationunder26U.S.C.
137137 125Section163(j),asamended,didnotexist;
138138 126 (12)Onehundredpercentofanyretirementbenefitsreceivedbyanytaxpayerasa
139139 127resultofthetaxpayer'sserviceintheArmedForcesoftheUnitedStates,includingreserve
140140 HB2457 4 128componentsandtheNationalGuardofthisstate,asdefinedin32U.S.C.Sections101(3)and
141141 129109,andanyothermilitaryforceorganizedunderthelawsofthisstate;[and]
142142 130 (13)Onehundredpercentofanyfederalgrantmoneysreceivedforthepurposeof
143143 131providingorexpandingaccesstobroadbandinternettoareasofthestatedeemedtobelacking
144144 132suchaccess; and
145145 133 (14)ForalltaxyearsbeginningonorafterJanuary1,2022,theamountof
146146 134specifiedresearchorexperimentalexpendituresthatarebothrequiredtobechargedto
147147 135capitalaccountandactuallyarechargedtocapitalaccountasrequiredby26U.S.C.
148148 136Section174(a)(2)(A),asamended,forthetaxyear,afteranyreductiontothatamount
149149 137under26U.S.C.Section280C(c),asamended.
150150 138 4.Thereshallbeaddedtoorsubtractedfromthetaxpayer'sfederaladjustedgross
151151 139incomethetaxpayer'sshareoftheMissourifiduciaryadjustmentprovidedinsection143.351.
152152 140 5.Thereshallbeaddedtoorsubtractedfromthetaxpayer'sfederaladjustedgross
153153 141incomethemodificationsprovidedinsection143.411.
154154 142 6.Inadditiontothemodificationstoataxpayer'sfederaladjustedgrossincomeinthis
155155 143section,tocalculateMissouriadjustedgrossincomethereshallbesubtractedfromthe
156156 144taxpayer'sfederaladjustedgrossincomeanygainrecognizedpursuantto26U.S.C.Section
157157 1451033oftheInternalRevenueCodeof1986,asamended,arisingfromcompulsoryor
158158 146involuntaryconversionofpropertyasaresultofcondemnationortheimminencethereof.
159159 147 7.(1)Asusedinthissubsection,"qualifiedhealthinsurancepremium"meansthe
160160 148amountpaidduringthetaxyearbysuchtaxpayerforanyinsurancepolicyprimarily
161161 149providinghealthcarecoverageforthetaxpayer,thetaxpayer'sspouse,orthetaxpayer's
162162 150dependents.
163163 151 (2)Inadditiontothesubtractionsinsubsection3ofthissection,onehundredpercent
164164 152oftheamountofqualifiedhealthinsurancepremiumsshallbesubtractedfromthetaxpayer's
165165 153federaladjustedgrossincometotheextenttheamountpaidforsuchpremiumsisincludedin
166166 154federaltaxableincome.Thetaxpayershallprovidethedepartmentofrevenuewithproofof
167167 155theamountofqualifiedhealthinsurancepremiumspaid.
168168 156 8.(1)BeginningJanuary1,2014,inadditiontothesubtractionsprovidedinthis
169169 157section,onehundredpercentofthecostincurredbyataxpayerforahomeenergyaudit
170170 158conductedbyanentitycertifiedbythedepartmentofnaturalresourcesundersection640.153
171171 159ortheimplementationofanyenergyefficiencyrecommendationsmadeinsuchanauditshall
172172 160besubtractedfromthetaxpayer'sfederaladjustedgrossincometotheextenttheamountpaid
173173 161foranysuchactivityisincludedinfederaltaxableincome.Thetaxpayershallprovidethe
174174 162departmentofrevenuewithasummaryofanyrecommendationsmadeinaqualifiedhome
175175 163energyaudit,thenameandcertificationnumberofthequalifiedhomeenergyauditorwho
176176 164conductedtheaudit,andproofoftheamountpaidforanyactivitiesunderthissubsectionfor
177177 HB2457 5 165whichadeductionisclaimed.Thetaxpayershallalsoprovideacopyofthesummaryofany
178178 166recommendationsmadeinaqualifiedhomeenergyaudittothedepartmentofnatural
179179 167resources.
180180 168 (2)Atnotimeshalladeductionclaimedunderthissubsectionbyanindividual
181181 169taxpayerortaxpayersfilingcombinedreturnsexceedonethousanddollarsperyearfor
182182 170individualtaxpayersorcumulativelyexceedtwothousanddollarsperyearfortaxpayers
183183 171filingcombinedreturns.
184184 172 (3)Anydeductionclaimedunderthissubsectionshallbeclaimedforthetaxyearin
185185 173whichthequalifiedhomeenergyauditwasconductedorinwhichtheimplementationofthe
186186 174energyefficiencyrecommendationsoccurred.Ifimplementationoftheenergyefficiency
187187 175recommendationsoccurredduringmorethanoneyear,thedeductionmaybeclaimedinmore
188188 176thanoneyear,subjecttothelimitationsprovidedundersubdivision(2)ofthissubsection.
189189 177 (4)Adeductionshallnotbeclaimedforanyotherwiseeligibleactivityunderthis
190190 178subsectionifsuchactivityqualifiedforandreceivedanyrebateorotherincentivethrougha
191191 179state-sponsoredenergyprogramorthroughanelectriccorporation,gascorporation,electric
192192 180cooperative,ormunicipallyownedutility.
193193 181 9.Theprovisionsofsubsection8ofthissectionshallexpireonDecember31,2020.
194194 182 10.(1)Asusedinthissubsection,thefollowingtermsmean:
195195 183 (a)"Beginningfarmer",ataxpayerwho:
196196 184 a.HasfiledatleastonebutnotmorethantenInternalRevenueServiceScheduleF
197197 185(Form1040)ProfitorLossFromFarmingformssinceturningeighteenyearsofage;
198198 186 b.IsapprovedforabeginningfarmerloanthroughtheUSDAFarmServiceAgency
199199 187BeginningFarmerdirectorguaranteedloanprogram;
200200 188 c.Hasafarmingoperationthatisdeterminedbythedepartmentofagriculturetobe
201201 189newproductionagriculturebutistheprincipaloperatorofafarmandhassubstantialfarming
202202 190knowledge;or
203203 191 d.Hasbeendeterminedbythedepartmentofagriculturetobeaqualifiedfamily
204204 192member;
205205 193 (b)"Farmowner",anindividualwhoownsfarmlandanddisposesoforrelinquishes
206206 194useofallorsomeportionofsuchfarmlandasfollows:
207207 195 a.Asaletoabeginningfarmer;
208208 196 b.Aleaseorrentalagreementnotexceedingtenyearswithabeginningfarmer;or
209209 197 c.Acrop-sharearrangementnotexceedingtenyearswithabeginningfarmer;
210210 198 (c)"Qualifiedfamilymember",anindividualwhoisrelatedtoafarmownerwithin
211211 199thefourthdegreebyblood,marriage,oradoptionandwhoispurchasingorleasingorisina
212212 200crop-sharearrangementforlandfromalloraportionofsuchfarmowner'sfarmingoperation.
213213 HB2457 6 201 (2)(a)Inadditiontoallothersubtractionsauthorizedinthissection,ataxpayerwho
214214 202isafarmownerwhosellsalloraportionofsuchfarmlandtoabeginningfarmermaysubtract
215215 203fromsuchtaxpayer'sMissouriadjustedgrossincomeanamounttotheextentincludedin
216216 204federaladjustedgrossincomeasprovidedinthissubdivision.
217217 205 (b)Subjecttothelimitationsinparagraph(c)ofthissubdivision,theamountthatmay
218218 206besubtractedshallbeequaltotheportionofcapitalgainsreceivedfromthesaleofsuch
219219 207farmlandthatsuchtaxpayerreceivesinthetaxyearforwhichsuchtaxpayersubtractssuch
220220 208capitalgain.
221221 209 (c)Ataxpayermaysubtractthefollowingamountsandpercentagespertaxyearin
222222 210totalcapitalgainsreceivedfromthesaleofsuchfarmlandunderthissubdivision:
223223 211 a.Forthefirsttwomilliondollarsreceived,onehundredpercent;
224224 212 b.Forthenextonemilliondollarsreceived,eightypercent;
225225 213 c.Forthenextonemilliondollarsreceived,sixtypercent;
226226 214 d.Forthenextonemilliondollarsreceived,fortypercent;and
227227 215 e.Forthenextonemilliondollarsreceived,twentypercent.
228228 216 (d)Thedepartmentofrevenueshallprepareanannualreportreviewingthecostsand
229229 217benefitsandcontainingstatisticalinformationregardingthesubtractionofcapitalgains
230230 218authorizedunderthissubdivisionfortheprevioustaxyearincluding,butnotlimitedto,the
231231 219totalamountofallcapitalgainssubtractedandthenumberoftaxpayerssubtractingsuch
232232 220capitalgains.SuchreportshallbesubmittedbeforeFebruaryfirstofeachyeartothe
233233 221committeeonagriculturepolicyoftheMissourihouseofrepresentativesandthecommittee
234234 222onagriculture,foodproductionandoutdoorresourcesoftheMissourisenate,orthesuccessor
235235 223committees.
236236 224 (3)(a)Inadditiontoallothersubtractionsauthorizedinthissection,ataxpayerwho
237237 225isafarmownerwhoentersaleaseorrentalagreementforalloraportionofsuchfarmland
238238 226withabeginningfarmermaysubtractfromsuchtaxpayer'sMissouriadjustedgrossincomean
239239 227amounttotheextentincludedinfederaladjustedgrossincomeasprovidedinthis
240240 228subdivision.
241241 229 (b)Subjecttothelimitationinparagraph(c)ofthissubdivision,theamountthatmay
242242 230besubtractedshallbeequaltotheportionofcashrentincomereceivedfromtheleaseor
243243 231rentalofsuchfarmlandthatsuchtaxpayerreceivesinthetaxyearforwhichsuchtaxpayer
244244 232subtractssuchincome.
245245 233 (c)Notaxpayershallsubtractmorethantwenty-fivethousanddollarspertaxyearin
246246 234totalcashrentincomereceivedfromtheleaseorrentalofsuchfarmlandunderthis
247247 235subdivision.
248248 236 (4)(a)Inadditiontoallothersubtractionsauthorizedinthissection,ataxpayerwho
249249 237isafarmownerwhoentersacrop-sharearrangementonalloraportionofsuchfarmlandwith
250250 HB2457 7 238abeginningfarmermaysubtractfromsuchtaxpayer'sMissouriadjustedgrossincomean
251251 239amounttotheextentincludedinfederaladjustedgrossincomeasprovidedinthis
252252 240subdivision.
253253 241 (b)Subjecttothelimitationinparagraph(c)ofthissubdivision,theamountthatmay
254254 242besubtractedshallbeequaltotheportionofincomereceivedfromthecrop-share
255255 243arrangementonsuchfarmlandthatsuchtaxpayerreceivesinthetaxyearforwhichsuch
256256 244taxpayersubtractssuchincome.
257257 245 (c)Notaxpayershallsubtractmorethantwenty-fivethousanddollarspertaxyearin
258258 246totalincomereceivedfromtheleaseorrentalofsuchfarmlandunderthissubdivision.
259259 247 (5)Thedepartmentofagricultureshall,byrule,establishaprocesstoverifythata
260260 248taxpayerisabeginningfarmerforpurposesofthissectionandshallprovideverificationto
261261 249thebeginningfarmerandfarmsellerofsuchfarmer'sandseller'scertificationand
262262 250qualificationfortheexemptionprovidedinthissubsection.
263263 âś”
264264 HB2457 8