Missouri House Bill HB1007 Introduced / Fiscal Note

                    COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0763H.03C Bill No.:HCS for HB 1007  Subject:Tax Credits; Taxation and Revenue - Income; Taxation and Revenue - General; 
Department of Revenue; State Departments 
Type:Original  Date:February 19, 2025Bill Summary:This proposal modifies provisions relating to tax credits. 
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028General Revenue 
Fund*/**
($659,501) to Could 
exceed $476,076,725 
($663,618) to Could 
exceed $476,072,608 
($673,650) to Could 
exceed $476,062,576
Total Estimated Net 
Effect on General 
Revenue
($659,501) to Could 
exceed $476,076,725 
($663,618) to Could 
exceed $476,072,608 
($673,650) to Could 
exceed $476,062,576
*Oversight notes the cost to general revenue is the estimated impact for the DED, MDA, DPS-
DO, and DSS combined 6 FTE.
** Oversight notes this proposal would require all credits to be appropriated beginning with 
FY26.  Oversight will reflect savings up to $476,736,226 (the current redemption amount of all 
tax credits subject to the limit if they are not appropriated) to $0 (if they are appropriated).  
***Oversight notes this proposal adds a sunset clause to various tax credits. Oversight notes if 
the tax credits were to sunset this would result in a cost savings to general revenue if they are not 
reauthorized. For simplicity, Oversight did not include this savings in the estimates above. 
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net 
Effect on Other State 
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 2 of 
February 19, 2025
BB:LR:OD
ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net 
Effect on All Federal 
Funds
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028General Revenue 
Fund – DPS - DO1 FTE1 FTE1 FTE
General Revenue 
Fund – DSS 2 FTE2 FTE2 FTE
General Revenue 
Fund – MDA 2 FTE2 FTE2 FTE
General Revenue 
Fund – DED1 FTE1 FTE1 FTE
Total Estimated Net 
Effect on FTEUp to 6 FTEUp to 6 FTEUp to 6 FTE
☒ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any  
     of the three fiscal years after implementation of the act or at full implementation of the act.
☒ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
     the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Local Government$0$0$0 L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 3 of 
February 19, 2025
BB:LR:OD
FISCAL ANALYSIS
ASSUMPTION
Section 32.105 - 32.125 Neighborhood Assistance (NAP), Affordable Housing Assistance 
(NAP), and Development Tax Credit (AHAP)
Officials from the Department of Revenue (DOR) note: 
Sections 32.100 to 32.125 create three tax credit programs.  The Affordable Housing tax credit 
(AHAP) which has 2 caps, one of $10 million and the other of $1 million.  The Neighborhood 
Assistance tax credit which has a $16 million cap and the Development tax credit program that 
had a $6 million cap but was stopped on August 28, 2013, by the creation of the MO Works tax 
credit program (Section 620.2020.14).  
This proposal adds a sunset clause to Section 32.125 which would impact these programs.  There 
is no fiscal impact from adding the sunset clause to these credits.  However, should these 
programs actually be allowed to be sunset in the future, it would result in a savings to the State of 
up to the $27 million annual caps on the AHAP and Neighborhood Assistance programs.
For informational purposes only, DOR is providing the history of the authorizations, issuances 
and redemptions of each of these credits.  
Affordable Housing Tax Credit 
YearIssued 
Total 
Redeemed
FY 2024$5,263,913.00$5,211,902.60FY 2023$4,174,401.00$8,716,793.01FY 2022$10,482,025.00$3,619,925.08FY 2021$3,592,427.00$4,119,705.33FY 2020$4,510,701.00$4,025,790.93FY 2019$3,308,659.00$5,001,344.36FY 2018$6,145,103.00$4,752,091.91FY 2017$7,386,034.00$10,172,259.92FY 2016$13,171,092.00$8,484,672.81FY 2015$8,717,177.00$3,358,807.75FY 2014$4,844,279.00$5,620,749.73FY 2013$4,967,887.00$7,406,987.96FY 2012$5,990,591.00$5,629,465.92 L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 4 of 
February 19, 2025
BB:LR:OD
Neighborhood Assistance Tax Credit 
YearIssued 
Total 
Redeemed
FY 2024$10,200,112.00$9,185,734.75FY 2023$12,330,085.00$9,107,306.80FY 2022$11,113,005.75$8,067,535.14FY 2021$9,048,913.00$8,623,742.15FY 2020$8,703,761.00$9,471,230.74FY 2019$10,377,614.00$8,947,215.78FY 2018$12,367,630.00$10,922,806.90FY 2017$14,490,650.00$14,831,654.17FY 2016$13,761,480.00$10,318,970.97FY 2015$11,435,785.00$8,230,285.75FY 2014$9,640,126.00$10,848,983.24FY 2013$10,144,225.00$7,392,112.96FY 2012$8,493,103.00$9,757,094.83
Development Tax Credit
Since this program was eliminated with the creation of the MO Works Tax Credit program, this 
has not had any authorizations or issuances.
Officials from the Office of Administration – Budget & Planning (B&P) note: 
This proposal would add a sunset clause to the AHAP, NAP, and Development tax credits.  B&P 
notes that the Development tax credit was closed during the creation of MO Works.  The three-
year average redemptions for AHAP were $5,849,540 and for NAP they were $8,786,859 in 
FY22-FY24.  Therefore, B&P estimates that if the credits are allowed to sunset, this could 
increase GR by $14,636,399 ($5,849,540 + $8,786,859) annually.
Oversight notes if the credits are allowed to sunset, it could result in a savings to general 
revenue. For purposes of this fiscal note, Oversight will not show savings from the sunset 
provision.
Section 100.260 Industrial Development and Reserve Fund  
Officials from the Department of Revenue state this proposal modifies the section references in 
this provision. This will not have a fiscal impact on DOR. L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 5 of 
February 19, 2025
BB:LR:OD
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero 
impact in the fiscal note.  
Section 100.270 Board Duties under the Missouri Finance Act  
Officials from the Department of Revenue assume this proposal modifies the definition of 
certified capital company. DOR defers to DED for the impact of this provision. 
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero 
impact in the fiscal note.  
 
Section 100.286 Bond Enhancement Tax Credit 
Officials from the Department of Revenue (DOR) note: 
This proposal adds a sunset clause to Section 100.286, which would stop the tax credit provision 
of this section. There is no fiscal impact from adding the sunset clause to a tax credit. However, 
should the tax credit actually be allowed to be sunset in the future, it would result in a savings to 
the State of up to the $25 million annually from the current cap on the program.
For informational purposes only, DOR is providing the history of the authorizations, issuances 
and redemptions of each of these credits.
  
YearIssued 
Total 
Redeemed
FY 2024$2,453,497.32$9,710,859.50FY 2023$9,195,015.82$6,786,698.92FY 2022$9,903,206.48$4,269,565.19FY 2021$6,513,798.58$3,750,910.72FY 2020$6,626,743.09$6,642,115.08FY 2019$5,904,204.98$5,574,589.21FY 2018$7,297,631.85$8,129,507.44FY 2017$4,985,580.79$13,949,851.18FY 2016$14,826,445.78$13,094,318.78FY 2015$8,711,789.65$14,792,340.70FY 2014$27,698,346.61$19,474,867.89FY 2013$7,029,161.41$14,804,416.35FY 2012$11,091,771.88$33,444,753.56 L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 6 of 
February 19, 2025
BB:LR:OD
Officials from the Office of Administration – Budget & Planning (B&P) note:
This proposal would add a sunset clause to the MDFB Infrastructure tax credit.  The three-year 
average redemptions were $6,922,375 in FY22-FY24.  Therefore, B&P estimates that if this 
credit is allowed to sunset, this could increase GR by $6,922,375 annually.
Oversight notes if the credits are allowed to sunset, it could result in a savings to general 
revenue ranging from the above provided amount up to the maximum cap of $25 million after 
December 2031. For purposes of this fiscal note, Oversight will not show savings from the 
sunset provision.
Section 100.293 Creation of Jobs Now Act Committee 
Officials from the Department of Revenue (DOR) assume this proposal modifies the sectional 
references in this program. DOR defers to DED for fiscal impact.
Section 100.297 Missouri Development Finance Board Bond Guarantee Tax Credit
Officials from the Department of Revenue (DOR) note: 
This proposal adds a sunset clause to Section 100.297 which would stop the tax credit provision 
of this section.  There is no fiscal impact from adding the sunset clause to a tax credit.  However, 
should the tax credit actually be allowed to be sunset in the future, it would result in a savings to 
the State of up to the annual cap on the program.  
It should be noted that this tax credit is only issued when an organization defaults on their bonds.  
This credit has not issued or authorized any credits in the last 10 years. It is assumed should this 
credit sunset, it would not actually result in any savings due to the lack of use currently.
Officials from the Office of Administration – Budget & Planning (B&P) note: 
This proposal would add a sunset clause to the MDFB Bond Guarantee tax credit.  B&P notes 
that there have been no redemptions since FY 2007.  Therefore, B&P estimates that this 
provision will not impact TSR and GR.
Oversight notes B&P and DOR both assume the provision will not impact TSR. Therefore, 
Oversight will reflect a zero impact in the fiscal note for this provision.
Section 100.850 Business Use Incentive for Large Development Tax Credit (BUILD)   L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 7 of 
February 19, 2025
BB:LR:OD
Officials from the Department of Revenue (DOR) note:
This proposal adds a sunset clause to Section 100.850 which would stop the tax credit provision 
of this section. There is no fiscal impact from adding the sunset clause to a tax credit.  However, 
should the tax credit actually be allowed to be sunset in the future, it would result in a savings to 
the State of up to the $25 million annually from the current cap on the program.
For informational purposes only, DOR is providing the history of the authorizations, issuances 
and redemptions of each of these credits.  
YearIssued 
Total 
Redeemed
FY 
2024$7,627,412.67$16,547,987.80
FY 
2023$9,946,806.62$8,900,471.06
FY 
2022$17,119,484.70$16,992,824.62
FY 
2021$17,581,613.54$12,343,210.35
FY 
2020$16,443,339.34$8,897,698.24
FY 
2019$15,749,740.98$13,776,255.52
FY 
2018$14,194,083.01$9,818,473.29
FY 
2017$10,946,789.59$10,433,122.10
FY 
2016$9,040,815.85$8,389,892.09
FY 
2015$10,612,876.07$7,990,466.34
FY 
2014$6,318,995.87$8,533,926.13
FY 
2013$9,969,516.20$8,212,532.51
FY 
2012$9,084,677.16$6,591,947.62
Officials from the Office of Administration – Budget & Planning (B&P) noted: 
This proposal would add a sunset clause to the BUILD tax credit.  The three-year average 
redemptions were $14,147,095 in FY22-FY24.  Therefore, B&P estimates that if this credit is 
allowed to sunset, this could increase GR by $14,147,095 annually. L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 8 of 
February 19, 2025
BB:LR:OD
Oversight notes if the credits are allowed to sunset, it could increase general revenue ranging 
from the above provided amount up to the maximum cap $25 million after 2031. For purposes of 
this fiscal note, Oversight will not show a savings from the sunset provision.
Section 135.090 Peace Officer Surviving Spouse Tax Credit Program
Officials from the Department of Revenue (DOR) note: 
This section is the peace officer surviving spouse tax credit program that allows the widow of a 
peace officer who dies in the line of duty to receive a tax credit equal to the amount of property 
tax they pay on the home they shared.  
This proposal adds a formula for setting a cap on this program starting July 1, 2026. The cap is to 
be equal to the highest amount issued from FY 2023 to FY 2025.  
DOR notes that this credit is not issued but rather just claimed on the tax return. Qualifying 
taxpayers make their property tax payment (in December) and request the credit on the next 
year’s tax return. The credit is only redeemed.  DOR assumes that the language of this proposal 
will stop this credit starting July 1, 2026.
For informational purposes only, DOR is providing the history of the redemptions of this credit.  
For informational purposes only, DOR is providing the history of the authorizations, issuances 
and redemptions of each of these credits.  
YearTotal Redeemed
FY 2024 $84,479.12FY 2023 $88,090.00FY 2022 $62,854.82FY 2021$103,170.00FY 2020 $68,056.00FY 2019$113,031.34FY 2018 $66,086.16FY 2017 $89,502.00FY 2016$117,554.07FY 2015 $70,940.68FY 2014 $76,533.00FY 2013 $78,249.00FY 2012 $32,793.00 L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 9 of 
February 19, 2025
BB:LR:OD
At this time, DOR notes that the highest redemption from FY 2023 to FY 2025 is estimated to be 
$88,090.  Since this proposal would end this credit, DOR assumes this proposal would result in a 
savings to general revenue of $88,090 annually.
It should be noted that the provision of this proposal says the credits are to be issued in the order 
they are claimed and that the Department of Public Safety (DPS) is to take over as administrator 
of the program.  Since this credit is ending, DOR assumes no fiscal impact from this provision.
Officials from the Office of Administration - Budget and Planning note: 
This proposal would move the administration of the Surviving Spouse tax credit from DOR to 
DPS.  B&P defers to both agencies on potential administrative costs and impacts.
This proposal would place a cap on the amount of Surviving Spouse credits.  Beginning with 
FY26, the amount of credits that may be issued shall be limited to the highest amount of credits 
issued from FY23 through FY25.  
B&P notes that this credit is not currently issued only redeemed.  Therefore, the new issuance 
limit will be $0.  In addition, the changes moving the credit from DOR to DPS requires DPS to 
issue the credits before they are redeemed.  The combined language changes will effectively end 
this program as of FY26.
The three-year average redemptions were $78,475 in FY22-FY24.  Therefore, B&P estimates 
that provision could increase GR by $78,475 beginning in FY26.
Officials from the Department of Public Safety – Director’s Office (DPS-DO) assume the 
need for 1 FTE to coordinate with the different entities to ensure accuracy of paperwork prior to 
certifying.
Oversight notes Section 135.090.4., states that after the effective date of this section, the 
department of public safety shall administer the tax credit provided under this section. Therefore, 
Oversight will reflect the 1 FTE (Program Specialist at $68,712) in the fiscal note beginning FY 
2026.
Oversight assumes this provision adds a formula-based cap on the amount of tax credits issued 
for this program. Oversight assumes current average redemptions are below the new cap; 
therefore, Oversight will not show an impact from this provision.
Section 135.110 Business Facility Tax Credit Program
Officials from the Department of Revenue (DOR) notes:
This is the Business Facility tax credit program that provided a company with incentives to 
expand an existing facility or to establish a new facility.  The Missouri House of Representatives  L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 10 of 59
February 19, 2025
BB:LR:OD
has voted each year since FY 2020 to not allow more than $12 million in tax credits to be 
authorized annually.  
This proposal adds a formula for setting a cap on this program starting July 1, 2026.  The cap is 
to be equal to the highest amount issued from FY 2023 to FY 2025.  DOR records show no 
credits were issued in FY 2023 and $16,808,058 was issued in FY 2024.  DOR notes that the FY 
2025 has not ended at the time of completing the fiscal note and therefore, DOR will show the 
cap as $16,808,058. 
This proposal says the new cap is to begin on July 1, 2026.  DOR assumes that this new cap 
would be applicable to any new credits issued as of that date and would not impact state revenue 
until the credits are redeemed in January 2027.  
For informational purposes only, DOR is providing the history of the redemptions of this credit.
YearIssued 
Total 
Redeemed
FY 2024$16,808,057.81$16,474,636.43FY 2023$0.00$14,181,033.00FY 2022$0.00$14,833,669.00FY 2021$24,959,370.00$12,345,744.00FY 2020$0.00$7,555,278.00FY 2019$9,213,825.00$8,217,556.00FY 2018$8,762,244.00$6,329,689.00FY 2017$8,044,858.00$4,046,742.00FY 2016$4,778,641.00$4,593,362.00FY 2015$4,160,818.00$4,493,611.28FY 2014$6,563,164.00$6,618,443.21FY 2013$5,704,373.00$4,431,017.94FY 2012$4,840,502.00$4,796,279.38
This proposal states that should the credits claimed in the fiscal year exceed the total cap 
allowed, the credits are to be allowed in the order they are issued.  DOR notes that since DED 
will issue the credits, DOR does not know what order the credits were issued in to make that 
determination.  DOR assumes it would be solely the responsibility of the agency issuing the tax 
credit certificates to ensure they did not issue more credits than the cap allows. 
Officials from the Office of Administration – Budget & Planning (B&P) note: 
This proposal would place a cap on the amount of Business Facility credits that may be issued 
each year.  The new cap shall be the highest amount issued between FY23 through FY25.  B&P 
notes that FY25 issuances are not yet known.  However, the current highest issuance amount was 
$16,808,058 in FY24. L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 11 of 59
February 19, 2025
BB:LR:OD
Officials from the Department of Economic Development (DED) stateSection 135.110 
(Business Facility Headquarters Tax Credit) adds language that specifies a cap that is equal to 
the highest year of tax credits issued from FY23 - FY25. The cap will be based on FY25, which 
is not complete yet. The issued amount is $19,680,966 at the conclusion of Q2. The estimation 
for the full fiscal year is $19,680,966 x 2. Based on this, the cap is estimated to be $39,361,932
Oversight assumes this provision adds a formula-based cap on the amount of tax credits issued 
for this program. Therefore, Oversight will show a range of impact of $0 to a potential savings if 
future redemptions are capped.
Section 135.326 & 135.339 Adoption Tax Credits 
Officials from Department of Revenue assume Sections 135.325 and 135.339 are the adoption 
tax credit program that provides a means of reimbursing adopting parents some of their costs of 
an adoption.  
When this program was created, no administrator was named to oversee the program and by 
default, DOR became the administrator. This proposal names the Department of Social Services 
(DSS) as the administrator. Currently, adoptive parents file a form with their expenses with DSS 
and they are reimbursed under a federal program for some of their expenses.  Any expenses not 
covered by the federal program are approved for tax credits by DSS.  Changing the administrator 
to DSS would not result in any additional administrative or fiscal impact on the part of DOR.
This proposal will add a sunset clause to this credit. There is no fiscal impact from adding the 
sunset clause to a tax credit. However, should the tax credit actually be allowed to be sunset in 
the future, it would result in a savings to the State of an unknown amount.
This program had an annual cap of $6 million.  Legislation adopted in 2023 removed the annual 
cap starting July 1, 2024. DOR assumes that if the credit is allowed to sunset in the future it 
would result in a savings of up to at least $6 million.
For informational purposes only, DOR is providing the history of the redemptions of this credit.  
Year
Total 
Redeemed
FY 2024$260,448.00FY 2023$32,229.00FY 2022$19,690.00FY 2021$3,611.00FY 2020$29,404.00FY 2019$19,185.00FY 2018$88,706.00 L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 12 of 59
February 19, 2025
BB:LR:OD
FY 2017$127,211.00FY 2016$231,367.00FY 2015$380,715.00FY 2014$718,495.00FY 2013$744,155.00FY 2012$1,036,226.00
Officials from the Department of Social Services (DSS) state:
Section 135.326 adds a new definition for “department” – the Department of Social Services. 
Section 135.339 transfers tax credit from the Department of Revenue (in conjunction with 
Children’s Division), to DSS alone, administration of the tax credits provided by these sections.
Officials from the Office of Administration – Budget & Planning (B&P) note:
This proposal would move the administration of the Adoption tax credit from DOR to DSS.  
B&P defers to both agencies on potential administrative costs and impacts.
This proposal would add a sunset clause to the Adoption tax credit.  The three-year average 
redemptions were $104,122 in FY22-FY24.  Therefore, B&P estimates that if this credit is 
allowed to sunset, this could increase GR by $104,122 annually.
For purposes of this fiscal note, Oversight will not show an impact from the sunset provision. 
Section 135.341 Champion for Children Tax Credit Program
Officials from the Department of Revenue (DOR) note: 
This section is the Champion for Children tax credit program that gives a tax credit to donors 
who contribute to CASA’s child advocacy centers or crisis care centers.  The current cap on the 
program is $1,500,000.  Should the number of donors redeeming the credit exceed the amount of 
the cap, the credits can be equally apportioned among all available donors.
When this program was created, DOR was named the administrator to oversee the program.  
This proposal names the Department of Social Services (DSS) as the administrator. DOR 
assumes that DSS will need to set up a system by which the donors wanting the tax credit will 
apply to DSS for the credit and are awarded a certificate to make sure they stay under the tax 
credit cap and that the donors would then submit the certificate with their tax return. This will 
not result in any additional impact to DOR as most credits are processed this way.
It should be noted that DSS would need to keep track of the amount of credits being applied for 
and do the apportionment on the awarding of the credits. Currently, the apportionment happens 
at the redemption stage.   L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 13 of 59
February 19, 2025
BB:LR:OD
For informational purposes only, DOR is providing the history of the redemptions of each of 
these credits. 
YearTotal RedeemedFY 2024$961,385.26FY 2023$1,225,848.00FY 2022$884,965.00FY 2021$1,339,280.00FY 2020$827,942.00FY 2019$999,995.00FY 2018$999,986.00FY 2017$999,873.00FY 2016$999,987.00FY 2015$999,990.00FY 2014$930,769.00FY 2013$792,368.00FY 2012$629,456.00
Officials from the Department of Social Services (DSS) note: 
Section 135.341 changes definition for “department” –the Department of Social Services and 
also Director changed from the Director of DOR to DSS. The Section goes on to provide for tax 
credits, up to 50% of verified contribution, to qualified agencies (such as CASA or child 
advocacy centers) – aka the “champion for children tax credit”. DSS currently already verifies 
qualified agency status, but the rest of the tax credit administration would be new to DSS. There 
are pre-existing (but transferred) rulemaking provisions, and sunset provisions.
Officials from the Office of Administration – Budget & Planning (B&P) assume this proposal 
would move the administration of the Adoption tax credit from DOR to DSS.  B&P defers to 
both agencies on potential administrative costs and impacts.
This proposal would also change the annual limit from “redeemed” to “issued”.  B&P notes that 
this credit is not currently issued only redeemed.  Therefore, the new issuance limit will be $0.  
In addition, the changes moving the credit from DOR to DSS requires DSS to issue the credits 
before they are redeemed.  The combined language changes will effectively end this program as 
of FY26.
The three-year average redemptions were $1,024,066 in FY22-FY24.  Therefore, B&P estimates 
that provision could increase GR by $1,024,066 beginning in FY26.
Oversight assumes there could be an impact to DSS from the transfer of administration.  L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 14 of 59
February 19, 2025
BB:LR:OD
Section 135.432 Community Development/Small Business Tax Credit Program
Officials from the Department of Revenue (DOR) note:
Sections 135.400 to 135.432 represent the Community Development/Small Business tax credit 
program that gives a tax credit to investors who make a qualified investment in a small business.  
This tax credit has a program cap of $13 million. This credit distributed all of the credits and no 
more redemptions are outstanding.
This proposal adds a sunset clause to this credit. Since this tax credit program has no additional 
authorization authority it has already stopped. Therefore, adding the sunset clause does nothing 
and will not result in any additional fiscal impact.
Officials from the Office of Administration – Budget & Planning (B&P) note:
This proposal would add a sunset clause to the Community Development tax credit.  B&P notes 
that there have been no redemptions since FY 2011.  Therefore, B&P estimates that this 
provision will not impact TSR and GR.
Oversight notes the DOR and B&P both assume no impact stemming from the Section 135.432 
since no tax credit has been redeemed since 2011. Therefore, Oversight will note zero impact to 
the general revenue for above tax credit. 
Section 135.460 – Youth Opportunities
Officials from the Office of Administration – Budget & Planning (B&P) note this proposal 
would add a sunset clause to the YOP tax credit.  The three-year average redemptions were 
$2,926,896 in FY22-FY24.  Therefore, B&P estimates that if this credit is allowed to sunset, this 
could increase GR by $2,926,896 annually..
In response to the similar/identical proposal, HCS/HB2319 (4638H.02C) 2024, officials from the 
Department of Economic Development (DED) assumed the Section 135.460.10 adds a sunset 
date for Youth Opportunities Program of 12/31/2030 if it is not reauthorized. Could be future 
cost savings if not reauthorized.  L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 15 of 59
February 19, 2025
BB:LR:OD
Officials from the Department of Revenue (DOR) notes: 
This proposal adds a sunset clause to the Youth Opportunities (YOP) Tax Credit program.  The 
YOP program awards tax credits to donors of programs administering to youth development and 
crime prevention.  There is no fiscal impact from adding the sunset clause to a tax credit.  
However, should the tax credit actually be allowed to be sunset in the future, it would result in a 
savings to the State of up to the $6 million annually from the current cap on the program.
For informational purposes DOR is providing the amount authorized, issued and redeemed for 
this credit.
YearAuthorizedIssued 
Total 
Redeemed
FY 2024$9,756,101.00$4,706,331.00$3,468,054.65FY 2023$2,247,858.00$4,139,385.00$2,987,947.79FY 2022$5,706,067.00$3,039,904.00$2,324,687.48FY 2021$5,288,870.00$1,983,794.00$4,084,410.34FY 2020$1,212,623.00$4,086,770.50$5,217,305.77FY 2019$5,169,666.00$5,822,539.00$4,040,657.57FY 2018$6,826,426.00$5,726,775.00$4,818,711.26FY 2017$5,642,936.00$6,349,945.00$5,451,135.04FY 2016$6,375,728.00$5,411,972.00$4,706,636.11FY 2015$7,041,012.00$5,325,506.00$4,247,824.65FY 2014$5,941,601.50$5,080,128.00$5,239,666.42FY 2013$5,609,784.00$5,571,555.00$3,906,262.62FY 2012$5,843,692.62$4,152,310.83$4,979,894.20
Oversight notes that the average redemption from FY 2012 thru FY 2024 was $4,267,169. 
Therefore, Oversight assumes there could be a savings to the general revenue after December 31, 
2031 that could exceed the 12 year average redemption $4,267,169 if the program is allowed to 
sunset. For purposes of this fiscal note, Oversight will not show a savings from the sunset 
provision.
Section 135.487 Neighborhood Preservation Tax Credit Program
Officials from DOR
Tax Credit program.  The Neighborhood Preservation program awards tax credits to taxpayers to 
reimburse them for eligible expenses occurred in the rehabilitation of homes in designated 
blighted areas.   L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 16 of 59
February 19, 2025
BB:LR:OD
This proposal adds a sunset clause to this credit.  There is no fiscal impact from adding the 
sunset clause to a tax credit.  However, should the tax credit actually be allowed to be sunset in 
the future, it would result in a savings to the State of up to the $16 million annually from the 
current cap on the program.
For informational purposes only, DOR is providing the history of the authorizations, issuances 
and redemptions of this credit.  
YearAuthorizedIssued 
Total 
Redeemed
FY 
2024$9,100,000.00$8,159,715.40$4,333,513.50
FY 
2023$8,050,000.00$4,284,239.16$4,667,599.99
FY 
2022$0.00$4,005,863.64$3,134,422.45
FY 
2021$8,050,000.00$5,082,098.68$7,011,854.52
FY 
2020$8,094,250.00$5,879,298.43$3,658,595.10
FY 
2019$8,171,250.00$4,830,622.10$2,807,206.80
FY 
2018$8,290,583.75$3,923,399.76$3,293,154.79
FY 
2017$8,121,865.00$2,538,319.73$3,147,042.54
FY 
2016$1,007,875.82$11,197,639.74$2,963,956.74
FY 
2015$8,210,050.00$3,090,703.26$1,766,762.55
FY 
2014$7,015,264.52$2,199,211.15$1,789,898.44
FY 
2013$9,352,479.69$2,305,114.68$1,232,213.95
FY 
2012$9,145,201.93$969,306.53$2,159,654.10
Officials from the Office of Administration – Budget & Planning (B&P) note: 
This proposal would add a sunset clause to the Neighborhood Preservation tax credit.  The three-
year average redemptions were $4,045,178 in FY22-FY24.  Therefore, B&P estimates that if this 
credit is allowed to sunset, this could increase GR by $$4,045,178 annually. L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 17 of 59
February 19, 2025
BB:LR:OD
Oversight notes that tor purposes of this fiscal note, Oversight will not show a savings from the 
sunset provision.
Section 135.490 Disabled Access for Small Business Tax Credit Program
Officials from the Department of Revenue (DOR) note:
This proposal adds a sunset clause to the Disabled Access for Small Business Tax Credit 
program.  The Disabled Access for Small Business program awards tax credits to small business 
owners to reimburse them for providing accessible access to their business for the disabled.  
This proposal adds a sunset clause to this tax credit.  There is no fiscal impact from adding the 
sunset clause to a tax credit.  However, should the tax credit actually be allowed to be sunset in 
the future, it would result in a savings to the State of an unknown amount.
This proposal adds a formula for setting a cap on this program starting July 1, 2026.  The cap is 
to be equal to the highest amount issued from FY 2023 to FY 2025.  
DOR notes that this credit is not issued but rather just claimed on the tax return.  Qualifying 
taxpayers make their property improvements and request the credit on the next year’s tax return.  
The credit is only redeemed.  DOR assumes that the language of this proposal will stop this 
credit starting July 1, 2026.
For informational purposes only, DOR is providing the history of the redemptions of this credit. 
 
Year
Total 
Redeemed
FY 2025$0.00FY 2024$3,194.00FY 2023$2,423.00FY 2022$1,913.00FY 2021$7,739.00FY 2020$14,450.00FY 2019$11,597.00FY 2018$8,738.00FY 2017$1,275.00FY 2016$7,288.00FY 2015$16,525.00FY 2014$13,340.33FY 2013$14,602.60FY 2012$24,791.00 L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 18 of 59
February 19, 2025
BB:LR:OD
At this time, DOR notes that the highest redemption from FY 2023 to FY 2025 is estimated to be 
$3,194.  Since this proposal would end this credit, DOR assumes this proposal would result in a 
savings to general revenue of $3,194 annually.
It should be noted that the provision of this proposal says the credits are to be issued in the order 
they are claimed and that the Department of Economic Development (DED) is to take over as 
administrator of the program.  Since this credit is ending, they assume no fiscal impact from this 
provision.
In response to the similar/identical proposal, HCS/HB2319 (4638H.02C) 2024, officials from the 
Department of Economic Development (DED) assumed Section 135.490 (Disabled Access 
Tax Credit) removes DOR from administering this program and adds DED. The language 
specifies a cap that is equal to the highest year of tax credits issued from FY23 - FY25. Based on 
this, the cap is estimated to be $0, unless any credits are issued in the remainder of FY25.
Officials from the Office of Administration – Budget & Planning (B&P) assume this proposal 
would move the administration of the Small Business Disabled Access tax credit from DOR to 
DED.  B&P defers to both agencies on potential administrative costs and impacts.
This proposal would place a cap on the amount of Small Business Disabled Access credits.  
Beginning with FY26, the amount of credits that may be issued shall be limited to the highest 
amount of credits issued from FY23 through FY25.  
B&P notes that this credit is not currently issued only redeemed.  Therefore, the new issuance 
limit will be $0.  In addition, the changes moving the credit from DOR to DED requires DED to 
issue the credits before they are redeemed.  The combined language changes will effectively end 
this program as of FY26.
The three-year average redemptions were $2,443 in FY22-FY24.  Therefore, B&P estimates that 
provision could increase GR by $2,443 beginning in FY26..
Oversight assumes this provision adds a formula-based cap on the amount of tax credits issued 
for this program. Therefore, Oversight will show a range of impact of $0 to a potential savings if 
future redemptions are capped. 
Section 135.530 Distressed Community Definition
Officials from the Department of Revenue (DOR) assume this section removes the repealed tax 
credits from the section references listed in the definition of distressed community. This will not 
have a fiscal impact on DOR.  
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero 
impact in the fiscal note.   L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 19 of 59
February 19, 2025
BB:LR:OD
Section 135.562 – Residential Dwelling Access
Officials from the Office of Administration – Budget & Planning (B&P) assumethis proposal 
would move the administration of the Residential Dwelling Access tax credit from DOR to DED.  
B&P defers to both agencies on potential administrative costs and impacts.
Officials from the Department of Revenue (DOR) note: 
This is the residential dwelling tax credit program that provides a taxpayer making 
improvements to their dwelling to assist with accessibility of a disabled person a credit toward 
the cost of the improvements. This proposal has an annual cap of $100,000.
When this program was created, it referenced being administered by a department, but no 
Department was named.  By default, DOR has been the administrator. This proposal removes 
DOR as the administrator and replaces them with DED.  Currently, a taxpayer who wishes to 
claim this credit submits their receipts and tax credit reporting form to DOR with their tax return 
for approval.  This proposal would require the taxpayer to send their information to DED and 
have DED review it and issue them a certificate that can be filed with their return. Since this is 
the way most tax credits are handled, DOR notes that this would not result in any additional 
administrative or fiscal impact on the part of DOR.
For informational purposes only, DOR is providing the history of the redemptions of this credit.  
Year
Total 
Redeemed
FY 
2024$22,985.00
FY 
2023$0.00
FY 
2022$7,500.00
FY 
2021$971.00
FY 
2020$10,034.00
FY 
2019$2,500.00
FY 
2018$11,044.00
FY 
2017$7,053.00
FY 
2016$10,233.00
FY 
2015$18,190.00 L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 20 of 59
February 19, 2025
BB:LR:OD
FY 
2014$6,759.00
FY 
2013$10,258.00
FY 
2012$6,501.00
Officials from the Department of Social Services (DSS) state Section 135.562 transfers 
administration of a tax credit for making principal dwellings more disability friendly. DSS was a 
consultant to Revenue with respect to this credit, now DSS will consult with the Department of 
Economic Development. This Section as the consulting duties should be substantially identical.
In response to the similar/identical proposal, HCS/HB2319 (4638H.02C) 2024, officials from the 
Department of Economic Development (DED) noted:
Section 135.562 (Residential Dwelling Accessibility Tax Credit) removes DOR from 
administering this program and adds DED. Annual cap is $100,000 per FY. Estimating one FTE 
for both tax credit programs (Disabled Access Tax Credit and Residential Dwelling Accessibility 
Tax Credit).
Oversight notes Section 135.562 11., denotes that after the effective date of the section, the 
department of economic development shall administer the tax credit provided under this section. 
Therefore, Oversight will note DED cost for 1 FTE beginning FY 2026 (Senior Economic 
Development Specialist $83,784).
 
Section 135.647 – Food Pantry
Officials from the Office of Administration – Budget & Planning (B&P) note this proposal 
would move the administration of the Food Pantry tax credit from DOR to DSS.  B&P defers to 
both agencies on potential administrative costs and impacts.
Officials from the Department of Social Services (DSS) note: 
Section 135.647- new definition added for “department” – the department of social services. 
Relates to tax credits (cash or food donations) to a food pantry, soup kitchen or homeless shelter. 
Administration of this section has been transferred from the Department of Revenue to DSS.
Officials from the Department of Revenue (DOR) note:
contribute to a food pantry, homeless shelter or soup kitchen. The current cap on the program is 
$1,750,000. Should the number of donors redeeming the credit exceed the amount of the cap, the 
credits can be equally apportioned among all available donors. L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 21 of 59
February 19, 2025
BB:LR:OD
When this program was created, DOR was named the administrator to oversee the program.  
This proposal names the Department of Social Services (DSS) as the administrator.  DOR 
assumes that DSS will need to set up a system by which the donors wanting the tax credit will 
apply to DSS for the credit and are awarded a certificate to make sure they stay under the tax 
credit cap and that the donors would then submit the certificate with their tax return.  This will 
not result in any additional impact to DOR as most credits are processed this way.
It should be noted that DSS would need to keep track of the number of credits being applied for 
and do the apportionment on the awarding of the credits.  Currently, the apportionment happens 
at the redemption stage.   L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 22 of 59
February 19, 2025
BB:LR:OD
For informational purposes only, DOR is providing the history of the redemptions of this credit.
 
Year
Total 
Redeemed
FY 
2024$1,749,996.00
FY 
2023$1,749,990.00
FY 
2022$1,749,992.00
FY 
2021$1,749,992.00
FY 
2020$1,131,882.00
FY 
2019$1,380,894.00
FY 
2018$1,679,924.00
FY 
2017$1,584,566.00
FY 
2016$1,155,480.00
FY 
2015$1,118,866.00
FY 
2014$840,234.00
FY 
2013$72,822.00
FY 
2012$796,156.10
 
Oversight notes the average annual redemption was $1,289,292.
Oversight assumes this provision moves the administration of the tax credit program to DSS 
from DOR. Oversight assumes there could be costs for DSS to administer the program.
Section 135.690 – Medical Preceptorship
Officials from the Office of Administration – Budget & Planning (B&P) assume this proposal 
would add a sunset clause to the Medical Preceptorship tax credit.  B&P notes that this is a new 
program and only one year of redemptions has occurred.  Redemption in FY24 were $112,231.  
Therefore, B&P estimates that if this credit is allowed to sunset, this could increase GR by 
$112,231annually. L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 23 of 59
February 19, 2025
BB:LR:OD
Officials from the Department of Revenue (DOR) note:
This is the Medical Preceptorship tax credit program that gives a taxpayer a tax credit based on 
the number of medical preceptors they oversee.  The tax credit program has an annual cap of 
$200,000.
This proposal adds a sunset clause to this program.  There is no fiscal impact from adding the 
sunset clause to this credit.  However, should this program actually be allowed to be sunset in the 
future, it would result in a savings to the State of the $200,000 annual cap on the program.
DOR notes this program began with tax year 2023 and therefore they note that $172,000 in 
credits were issued and $112,231 in credits were redeemed.
Oversight notes that the Medical Preceptorship tax credit program has a current maximum cap 
of $200,000; therefore, Oversight notes the potential revenue gain after December 31, 2030 
could reach a same amount as the current cap if the program were allowed to sunset. For 
purposes of this fiscal note, Oversight will not show a savings from the sunset provision.
Section 135.719 MO Empowerment Tax Credit Program
Officials from the Department of Revenue (DOR) note:
This is the MO Empowerment (MOScholars) tax credit program that gives a taxpayer a tax credit 
for donations they make to educational organizations.  The tax credit program has an annual cap 
of $75 million that is adjusted annually based on the CPI.
This proposal adds a sunset clause to this program.  There is no fiscal impact from adding the 
sunset clause to this credit.  However, should this program actually be allowed to be sunset in the 
future, it would result in a savings to the State of over the $75 million adjusted annual cap on the 
program.
For informational purposes only, DOR is providing the history of the authorizations, issuances 
and redemptions of this credit. 
YearAuthorizedIssued 
Total 
Redeemed
FY 
2024$15,164,374.00$13,362,153.00$7,281,301.70
FY 
2023$10,249,109.00$8,446,888.00$2,026,624.68
Officials from the Office of Administration – Budget & Planning (B&P) note this proposal 
would add a sunset clause to the Empowerment Scholarship tax credit.  B&P notes that this is a 
new program with only two years of redemptions.  Redemptions in FY24 were $7,281,302.   L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 24 of 59
February 19, 2025
BB:LR:OD
Therefore, B&P estimates that if this credit is allowed to sunset, this could prevent a $7,281,302 
million reduction to GR in the future.
Oversight notes this provision adds a sunset clause to this program; therefore, Oversight 
estimates that if this credit is allowed to sunset, this could result in a $75 million savings to GR 
after December 2031. For purposes of this fiscal note, Oversight will not show a savings from 
the sunset provision.
Section 135.750 Show Me Act
Officials from the Department of Revenue (DOR) assume this section modifies the language of 
the Show Me Act tax credit. It adds language that says this credit would not be subject to the new 
provision created in Section 135.835.4 requiring tax credits to be appropriated.  
However, Section 135.835.4 does not include language exempting this credit from the 
appropriations limit and therefore, DOR assumes that this credit would still be required to be 
appropriated to be issued.
Officials from the Office of Administration – Budget & Planning (B&P) assumethis proposal 
states that the Show-MO film tax credits will not be subject to appropriation as would now be 
required under Section 135.835.4.
However, Section 135.835.4(2) contains a list of credits exempted from the appropriation limit 
and this credit is not included within that list.  Therefore, it is unclear how this conflicting 
language would be resolved. 
B&P notes that this is a new program and there were no redemptions during FY24.
Oversight notes that according to the latest Tax Credit Analysis filed by the DED in FY 2024 
the authorization, issuance, and redemption is as follows: 
 FY 2024 ActualCertificate Issued (#)1Projects/Participants 
(#) 4
Amount Authorized  $8,425,087 Amount Issued  $2,752,510            Amount Redeemed 
$            n/a   
Oversight notes this tax credit has a $16 million cap that includes $8 million for film 
productions and $8 million for series productions.  L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 25 of 59
February 19, 2025
BB:LR:OD
Oversight notes the DOR and B&P both assume that the proposal, Section 135.835.4, requires 
all credits subject to the appropriation, to be appropriated beginning with FY26. However, if 
there is no appropriation for a tax credit, then that credit may not be issued during the fiscal year. 
Oversight notes that there are 5 tax credits excluded from the reducing rules under Section 
135.835. 4 as follows: 
• Self-Employed Health Insurance 
• MO Working Family
• SALT Parity
• Bank Tax Credits for S-Corporations
• Bank Franchise
* Show – MO Tax Credit (additional tax credit under the Section 135.835 4. RSMo)
Oversight notes that the Show – Mo Tax Credit would be the sixth tax credit excluded from the 
reduction requirements under the rule. 
Additionally, Oversight notes Section 135.750 12. specifically denotes that this tax credit “shall 
not be subject to appropriation” as provided under 135.835. 4 proposed rules. 
Section 135.772 Ethanol Retailers Tax Credit Program
Officials from the Department of Revenue (DOR) note:
This is the Ethanol Retailers Tax Credit Program which was created in HB 3 from the 
extraordinary session of 2022 and was modified again in SB 138 in the 2023 session.  The 
program was given a $5 million annual cap.  Should the number of donors redeeming the credit 
exceed the amount of the cap, the credits can be equally apportioned among all available donors.
When this program was created, DOR was named the administrator to oversee the program.  
This proposal names the Department of Agriculture (MDA) as the administrator.  DOR assumes 
that MDA will need to set up a system by which the donors wanting the tax credit will apply to 
MDA for the credit and are awarded a certificate to make sure they stay under the tax credit cap 
and that the donors would then submit the certificate with their tax return.  This will not result in 
any additional impact to DOR as most credits are processed this way.
It should be noted that MDA would need to keep track of the number of credits being applied for 
and do the apportionment on the awarding of the credits.  Currently, the apportionment happens 
at the redemption stage.  
DOR notes this program shows redemptions in FY 2024 of $845.
Officials from the Office of Administration – Budget & Planning (B&P) note that this 
proposal would move the administration of the Ethanol Retailer tax credit from DOR to MDA. 
B&P defers to both agencies on potential administrative costs and impacts. L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 26 of 59
February 19, 2025
BB:LR:OD
Oversight assumes this provision moves the administration of the program from DOR to MDA. 
Section 135.775 Biodiesel Retailers Tax Credit Program
Officials from the Department of Revenue (DOR) note:
This is the Biodiesel Retailers Tax Credit Program which was created in HB 3 from the 
extraordinary session of 2022 and was modified again in SB 138 in the 2023 session.  The 
program was given a $16 million annual cap.  Should the number of donors redeeming the credit 
exceed the amount of the cap, the credits can be equally apportioned among all available donors.
When this program was created, DOR was named the administrator to oversee the program.  
This proposal names the Department of Agriculture (MDA) as the administrator.  They assume 
that MDA will need to set up a system by which the donors wanting the tax credit will apply to 
MDA for the credit and are awarded a certificate to make sure they stay under the tax credit cap 
and that the donors would then submit the certificate with their tax return.  This will not result in 
any additional impact to DOR as most credits are processed this way.
It should be noted that MDA would need to keep track of the number of credits being applied for 
and do the apportionment on the awarding of the credits.  Currently, the apportionment happens 
at the redemption stage.  
DOR notes this program shows redemptions in FY 2024 of $1,238,009.
Officials from the Office of Administration – Budget & Planning (B&P) note that this 
proposal would move the administration of the Ethanol Retailer tax credit from DOR to MDA.  
B&P defers to both agencies on potential administrative costs and impacts.
Oversight assumes this provision moves the administration of the program from DOR to MDA. 
Section 135.778 Biodiesel Producers Tax Credit Program
Officials from the Department of Revenue (DOR) note:
This is the Biodiesel Producers Tax Credit Program which was created in HB 3 from the 
extraordinary session of 2022 and was modified again in SB 138 in the 2023 session.  The 
program was given a $5.5 million annual cap.  
When this program was created, DOR was named the administrator to oversee the program.  
This proposal names the Department of Agriculture (MDA) as the administrator. DOR assume 
that MDA will need to set up a system by which the donors wanting the tax credit will apply to 
MDA for the credit and are awarded a certificate to make sure they stay under the tax credit cap 
and that the donors would then submit the certificate with their tax return.  This will not result in 
any additional impact to DOR as most credits are processed this way. L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 27 of 59
February 19, 2025
BB:LR:OD
DOR notes this program showed redemptions in FY 2024 of $2,265,248.  
Officials from the Office of Administration – Budget & Planning (B&P) note that this would 
move the administration of the Biodiesel Retailer tax credit from DOR to MDA. B&P defers to 
both agencies on potential administrative costs and impacts
Oversight assumes this provision moves the administration of the program from DOR to MDA. 
Section 135.800 Tax Credit Accountability Act (TCAA)
Officials from the Department of Revenue (DOR) note that this provision removes the tax 
credits that are being repealed from the TCAA.  This will not have a fiscal impact on DOR.
Oversight notes the provision is removing all tax credit that are being repealed from TCAA and 
will reflect zero impact stemming from this provision in the fiscal note. 
Section 135.1150 – Residential Treatment
Officials from the Department of Revenue (DOR) note:
This is the Residential Treatment Agency tax credit program that gives a taxpayer a tax credit for 
contributions to residential treatment centers.  The tax credit program is a prepay credit and 
therefore does not have an annual cap.  
This proposal adds a formula for setting a cap on this program starting July 1, 2026.  The cap is 
to be equal to the highest amount issued from FY 2023 to FY 2025.  DOR records show credits 
of $132,459 were issued in FY 2023 and $73,331 was issued in FY 2024.  DOR notes that the 
FY 2025 has not ended at the time of completing the fiscal note and therefore, DOR will show 
the cap as $132,459. 
This proposal says the new cap is to begin on July 1, 2026.  DOR assumes that this new cap 
would be applicable to any new credits issued as of that date and would not impact state revenue 
until the credits are redeemed in January 2027.  
For informational purposes only, DOR is providing the history of the issuances and redemptions 
of this credit.  
YearIssued 
Total 
Redeemed
FY 2024$73,330.50$79,872.00FY 2023$132,458.67$132,813.17FY 2022$338,707.41$356,486.62 L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 28 of 59
February 19, 2025
BB:LR:OD
FY 2021$339,129.19$315,207.37FY 2020$442,411.50$359,851.40FY 2019$366,666.57$195,841.63FY 2018$357,048.79$294,638.79FY 2017$352,380.77$389,076.96FY 2016$374,509.65$275,140.05FY 2015$415,340.51$303,112.15FY 2014$348,603.82$490,033.02FY 2013$513,211.66$292,395.69FY 2012$373,588.37$283,501.00
This proposal states that should the credits claimed in the fiscal year exceed the total cap 
allowed, the credits are to be allowed in the order they are issued.  DOR notes that since DED 
will issue the credits, they will not know what order the credits were issued in to make that 
determination.  DOR assumes it would be solely the responsibility of the agency issuing the tax 
credit certificates to ensure they did not issue more credits than the cap allows.
This proposal adds a sunset clause to this program.  There is no fiscal impact from adding the 
sunset clause to this credit.  However, should this program actually be allowed to be sunset in the 
future, it would result in a savings to the State of the $132,459 annual cap on the program.
Officials from the Department of Social Services (DSS) note: 
Section 135.1150 relates to tax credits for donations to residential treatment centers. DSS already 
administers this tax credit. Changes in this section also relate to cumulative amounts of tax 
credits to all taxpayers, which DSS will calculate. There are also new sunset provisions.
Officials from the Office of Administration – Budget & Planning (B&P) note this proposal 
would place a cap on the amount of Developmental Disability Care credits that may be redeemed 
each year.  The new cap shall be the highest annual amount issued between FY23 and FY25.  
B&P notes that FY25 issuances are not yet known.  However, the current highest issuance 
amount was $59,318 in FY22.
This proposal would add a sunset clause to the Developmental Disability Care tax credit.  The 
three-year average redemptions were $26,866 in FY22-FY24.  Therefore, B&P estimates that if 
this credit is allowed to sunset, this could increase GR by $26,866 annually.
Oversight assumes this provision adds a formula-based cap on the amount of tax credits issued 
for this program. Therefore, Oversight will show a range of impact of $0 to a potential savings if 
future redemptions are capped. 
Section 135.1180 Developmental Disability Tax Credit Program L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 29 of 59
February 19, 2025
BB:LR:OD
Officials from the Department of Revenue (DOR) note:
This is the Developmental Disability tax credit program that gives a taxpayer a tax credit for 
contributions to providers who provide services to the developmentally disabled.  The tax credit 
program is a prepay credit and therefore, does not have an annual cap.  
This proposal adds a formula for setting a cap on this program starting July 1, 2026.  The cap is 
to be equal to the highest amount issued from FY 2023 to FY 2025.  DOR records show credits 
of $59,427 were issued in FY 2023 and $6,831 was issued in FY 2024.  DOR notes that the FY 
2025 has not ended at the time of completing the fiscal note and therefore, DOR will show the 
cap as $59,427. 
This proposal says the new cap is to begin on July 1, 2026.  DOR assumes that this new cap 
would be applicable to any new credits issued as of that date and would not impact state revenue 
until the credits are redeemed in January 2027.  
For informational purposes only, DOR is providing the history of the issuances and redemptions 
of this credit. 
 
YearIssued 
Total 
Redeemed
FY 
2024$6,830.87$4,642.00
FY 
2023$59,427.00$59,427.00
FY 
2022$59,317.50$16,528.02
FY 
2021$67,212.22$95,070.92
FY 
2020$78,204.70$52,505.00
FY 
2019$55,441.07$17,389.00
FY 
2018$41,313.00$33,597.00
FY 
2017$27,937.50$28,130.00
FY 
2016$14,396.46$18,618.00
FY 
2015$28,435.35$16,793.85
FY 
2014$49,587.50$92,992.50
FY 
2013$62,291.50$7,819.00 L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 30 of 59
February 19, 2025
BB:LR:OD
This proposal states that should the credits claimed in the fiscal year exceed the total cap 
allowed, the credits are to be allowed in the order they are issued.  DOR notes that since DED 
will issue the credits, DOR will not know what order the credits were issued in to make that 
determination.  DOR assumes it would be solely the responsibility of the agency issuing the tax 
credit certificates to ensure they did not issue more credits than the cap allows.
This proposal adds a sunset clause to this program.  There is no fiscal impact from adding the 
sunset clause to this credit.  However, should this program actually be allowed to be sunset in the 
future, it would result in a savings to the State of the $59,427 annual cap on the program.
Officials from the Department of Social Services (DSS) state Section 135.1180 relates to tax 
credits for eligible donations to developmental disability care providers. DSS already administers 
this tax credit. As with the prior two sections the primary change is adding a cap, to be calculated 
by DSS, of total statewide tax credits available under this Section.  Again, there is a 20% 
maximum statewide change allowed. There are also new sunset provisions.
Officials from the Office of Administration – Budget & Planning (B&P) note this proposal 
would place a cap on the amount of Developmental Disability Care credits that may be redeemed 
each year. The new cap shall be 20% of the highest annual redemption amount between FY18 
and FY24. B&P notes that FY24 redemptions are not yet known. B&P will use FY18 through 
FY23 redemptions to estimate an impact for this provision.
Based on expenditure data, the highest redemption amount was $95,071 in FY21. Therefore, the 
new credit limit would be $114,085. Because this sets a limit higher than actual redemptions, this 
provision will not impact TSR.
This proposal would add a sunset clause to the Developmental Disability Care tax credit. The 
three-year average redemptions were $57,009 in FY21-FY23. Therefore, B&P estimates that if 
this credit is allowed to sunset, this could increase GR by $57,009 annually.
Oversight assumes this provision would add a sunset clause to the Developmental Disability 
Care tax credit. The three-year average redemptions were $57,009 in FY21-FY23. Therefore, 
Oversight assumes, if this credit is allowed to sunset, this could result in a savings to GR by 
$57,009 annually beginning after December 2030. For purposes of this fiscal note, Oversight will 
not show a savings from the sunset provision.
137.123 Wind Energy Property – True Value for Assessment Calculation 
Officials from the Department of Revenue (DOR) assume This section updates sectional 
references in regard to property tax assessment. DOR assumes this would not have a fiscal 
impact.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero 
impact in the fiscal note.   L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 31 of 59
February 19, 2025
BB:LR:OD
Section 143.119 Self-Employed Health Insurance Tax Credit Program
Officials from the Department of Revenue (DOR) note:
This is the Self-Employed tax credit program that gives a self-employed taxpayer a tax credit for 
contributions they make to a health insurance plan for themselves.  The tax credit program does 
not have an annual cap.  
This proposal adds a formula for setting a cap on this program starting July 1, 2026.  The cap is 
to be equal to the highest amount issued from FY 2023 to FY 2025.  
DOR notes that this credit is not issued but rather just claimed on the tax return.  Qualifying 
taxpayers make their health insurance payments and request the credit on the next year’s tax 
return.  The credit is only redeemed.  DOR assumes that the language of this proposal will stop 
this credit starting July 1, 2026. L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 32 of 59
February 19, 2025
BB:LR:OD
For informational purposes only, DOR is providing the history of the redemptions of this credit.  
Year
Total 
Redeemed
FY 
2024$2,220,866.00
FY 
2023$6,335,102.00
FY 
2022$10,249,256.00
FY 
2021$10,710,252.00
FY 
2020$12,297,976.00
FY 
2019$5,574,641.00
FY 
2018$8,607,758.00
FY 
2017$7,920,345.00
FY 
2016$6,594,509.00
FY 
2015$3,418,312.00
FY 
2014$2,959,063.01
FY 
2013$1,811,060.00
FY 
2012$1,847,045.00
At this time, DOR notes that the highest redemption from FY 2023 to FY 2025 is estimated to be 
$6,335,102.  Since this proposal would end this credit, DOR assumes this proposal would result 
in a savings to general revenue of $6,335,102 annually.
This section contains language that this credit would not be subject to the new provision created 
in Section 135.835.4 requiring tax credits to be appropriated.  Since this credit will be stopped 
starting July 1, 2026, they assume this language would not fiscally impact DOR.
Officials from the Office of Administration – Budget & Planning (B&P) note this proposal 
would place a cap on the amount of Self-Employed Health Insurance credits that may be issued 
each year.  The new cap shall be the highest annual issuance amount between FY23 and FY25.  
B&P notes that FY25 issuances are not yet known.   L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 33 of 59
February 19, 2025
BB:LR:OD
B&P notes that these credits are not currently issued; therefore, the issuance limit would be $0.  
It is unclear how limiting issuances to $0 would impact this credit, if at all.  For the purpose of 
this fiscal note B&P will assume an impact of $0 or $6,268,408 (3-year average redemptions, 
FY22-FY24) beginning FY26.
Oversight assumes this provision adds a formula-based cap on the amount of tax credits issued 
for this program. Therefore, Oversight will show a range of impact of $0 to a potential savings if 
future redemptions are capped. 
 Section 143.177 MO Working Family Tax Credit Program (MO-EITC)
Officials from the Department of Revenue (DOR) note:
SB 153 & 97 adopted in 2021 created the MO Working Family Tax Credit program, an EITC 
program for the state.  The bill required that starting with tax year 2023, the state credit be 10% 
of the federal credit and that in tax year 2024 the credit would be 20% of the state credit.  
Starting with tax year 2025, the credit would remain at 20% in all future fiscal years.  DOR notes 
the federal credit is inflation adjusted annually.  
This proposal adds a formula for setting a cap on this program starting July 1, 2026.  The cap is 
to be equal to the highest amount issued from FY 2023 to FY 2025.  
DOR notes that this credit is not issued but rather just claimed on the tax return.  Qualifying 
taxpayers are eligible for a credit equal to 20% of the amount claimed on their federal return and 
they request the credit on the tax return. The credit is only redeemed.  DOR assumes that the 
language of this proposal will stop this credit starting July 1, 2026.
At this time, DOR notes that the highest redemption from FY 2023 to FY 2025 is estimated to be 
$28,482,968 the amount redeemed in FY 2024 (first year of program).  Since this proposal would 
end this credit, DOR assumes this proposal would result in a savings to general revenue of 
$28,482,968 annually.
This section contains language that this credit would not be subject to the new provision created 
in Section 135.835.4 requiring tax credits to be appropriated.  Since this credit will be stopped 
starting July 1, 2026, DOR assumes this language would not fiscally impact DOR.
This proposal adds a sunset clause to this program. There is no fiscal impact from adding the 
sunset clause to this credit since the program will be stopped as of July 1, 2026, per this 
proposal.
Officials from the Office of Administration – Budget & Planning (B&P) note:  L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 34 of 59
February 19, 2025
BB:LR:OD
This proposal would add a sunset to the Missouri Working Family tax credit.  B&P notes that 
this is a new credit with only one year of redemptions.  Redemptions for FY24 were 
$28,482,968.  However, the credit for tax year 2023 (FY24 redemptions) was set at 10% of a 
taxpayer’s federal EITC.  The credit was increased to 20% of a taxpayer’s federal EITC for tax 
years 2024 (FY25) and beyond.  Therefore, B&P estimates that if this credit is allowed to sunset, 
this could increase GR by $56,965,935 annually.
This proposal would place a cap on the amount of MO Working Family credits that may be 
issued each year.  The new cap shall be the highest annual issuance amount between FY24 and 
FY26.  B&P notes that FY25 and FY26 issuances are not yet known.  
B&P notes that these credits are not currently issued; therefore, the issuance limit would be $0.  
It is unclear how limiting issuances to $0 would impact this credit, if at all.  For the purpose of 
this fiscal note B&P will assume an impact of $0 or $56,965,935 beginning FY26.
Oversight assumes this provision adds a formula based cap on the amount of tax credits issued 
for this program. Therefore, Oversight will show a range of impact of $0 to a potential savings if 
future redemptions are capped. 
Section 143.436 SALT Parity Tax Credit – Reduction or Increasing Rule 
Officials from DOR state the Salt Parity act establishes a means in which a business can file 
taxes on behalf of its members, and the members can receive a credit toward that tax received.  
This program began in tax year 2023.
For informational purposes only, DOR is providing the history of the redemptions of this credit.  
YearTotal RedeemedFY 2024$396,849,612.06FY 2023$119,223,771.29
This section contains language that this credit would not be subject to the new provision created 
in Section 135.835.4 requiring tax credits to be appropriated. This credit does not have a cap. 
DOR assumes this language would not fiscally impact DOR. 
Section 143.471 Bank S Corp Tax Credit Program
Officials from the Department of Revenue (DOR) note:
The Bank S Corp tax credit program provides a tax credit to shareholders of a bank S Corps as 
an adjustment to the corporate tax paid so as to not double tax them.  The program does not 
currently have a cap. L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 35 of 59
February 19, 2025
BB:LR:OD
This proposal adds a formula for setting a cap on this program starting July 1, 2026.  The cap is 
to be equal to the highest amount issued from FY 2023 to FY 2025.  
DOR notes that this credit is not issued but rather just claimed on the tax return.  Qualifying 
taxpayers receive an adjustment on their return in the form of this tax credit.  The credit is only 
redeemed.  DOR assumes that the language of this proposal will stop this credit starting July 1, 
2026. L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 36 of 59
February 19, 2025
BB:LR:OD
For informational purposes only, DOR is providing the history of the redemptions of this credit.  
Year
Total 
Redeemed
FY 2024$2,438,253.65FY 2023$1,208,213.44FY 2022$11,734,876.97FY 2021$2,534,411.81FY 2020$2,039,671.18FY 2019$8,396,967.00FY 2018$7,481,839.86FY 2017$9,016,754.99FY 2016$9,449,559.42FY 2015$6,298,017.54FY 2014$2,607,870.49FY 2013$4,533,836.55FY 2012$5,523,276.11
At this time, DOR notes that the highest redemption from FY 2018 to FY 2023 is $11,734,877 
At this time, DOR notes that the highest redemption from FY 2023 to FY 2025 is estimated to be 
$2,438,254 the amount redeemed in FY 2024.  Since this proposal would end this credit, DOR 
assumes this proposal would result in a savings to general revenue of $2,438,254 annually.
This section contains language that this credit would not be subject to the new provision created 
in Section 135.835.4 requiring tax credits to be appropriated.  Since this credit will be stopped 
starting July 1, 2026, they assume this language would not fiscally impact DOR.
This proposal adds a sunset clause to this program.  There is no fiscal impact from adding the 
sunset clause to this credit since the program will be stopped as of July 1, 2026, per this proposal
Officials from the Office of Administration – Budget & Planning (B&P) note: 
This proposal would add a sunset clause to the Bank Tax Credit for S-Corporations tax credit.  
The three-year average redemptions were $5,127,114 in FY22-FY24.  Therefore, B&P estimates 
that if this credit is allowed to sunset, this could increase GR by $5,127,114 annually.
This proposal would place a cap on the amount of Bank Tax Credit for S-Corporations credits 
that may be redeemed each year.  The new cap shall be the highest annual issuance amount 
between FY23 and FY25.  B&P notes that FY25 issuances are not yet known.   L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 37 of 59
February 19, 2025
BB:LR:OD
B&P notes that these credits are not currently issued; therefore, the issuance limit would be $0.  
It is unclear how limiting issuances to $0 would impact this credit, if at all.  For the purpose of 
this fiscal note B&P will assume an impact of $0 or $5,127,114 beginning FY26.
Oversight assumes this provision adds a formula-based cap on the amount of tax credits issued 
for this program. Therefore, Oversight will show a range of impact of $0 to a potential savings if 
future redemptions are capped. 
Section 148.030 Bank Frenchise Tax Credit 
Officials from the Department of Revenue (DOR) assume this section modifies language of the 
bank franchise tax credit.  It adds language that says this credit would not be subject to the new 
provision created in Section 135.835.4 requiring tax credits to be appropriated. 
Officials from the DOR assume the proposal will have no fiscal impact on their organization. 
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero 
impact in the fiscal note.  
Section 148.330 Insurance Companies Returns 
Officials from the Department of Revenue (DOR) assume this section removes old repealed 
statutory references. This will not fiscally impact DOR.
Officials from the DOR assume the proposal will have no fiscal impact on their organization. 
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero 
impact in the fiscal note.  
Section 148.350 Insurance Companies Returns
Officials from the Department of Revenue (DOR) assume this section is removing language 
from statutes.  DOR will defer to the Department of Commerce and Insurance for impact on this 
wording.
Section 190.465 Consolidation of 911 Emergency Communication Operations 
Officials from the Department of Revenue (DOR)
from statutes.  DOR will defer to the Department of Economic Development for impact on this 
wording.
Section 192.2015 Shared Care Tax Credit Program L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 38 of 59
February 19, 2025
BB:LR:OD
Officials from the Department of Revenue (DOR) note:
This proposal modifies the Shared Care Tax Credit program.  This provides a tax credit to people 
providing care to an elderly person in their home.  This credit does not have an annual cap.
This proposal adds a formula for setting a cap on this program starting July 1, 2026.  The cap is 
to be equal to the highest amount issued from FY 2023 to FY 2025.  DOR records show credits 
of $20,500 were issued in FY 2023 and $40,500 was issued in FY 2024.  DOR notes that the FY 
2025 has not ended at the time of completing the fiscal note and therefore, DOR will show the 
cap as $40,500. 
This proposal says the new cap is to begin on July 1, 2026.  DOR assumes that this new cap 
would be applicable to any new credits issued as of that date and would not impact state revenue 
until the credits are redeemed in January 2027.  
For informational purposes only, DOR is providing the history of the issuances and redemptions 
of this credit.
  
YearIssued 
Total 
Redeemed
FY 
2024$40,500.00$18,231.00
FY 
2023$20,500.00$15,119.00
FY 
2022$24,000.00$13,883.00
FY 
2021$27,000.00$22,187.00
FY 
2020$27,000.00$21,506.00
FY 
2019$33,500.00$12,530.00
FY 
2018$43,500.00$28,931.00
FY 
2017$56,000.00$42,025.00
FY 
2016$74,000.00$39,846.00
FY 
2015$51,000.00$37,056.00
This proposal states that should the credits claimed in the fiscal year exceed the total cap 
allowed, the credits are to be allowed in the order they are issued.  DOR notes that since DHSS  L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 39 of 59
February 19, 2025
BB:LR:OD
will issue the credits, they will not know what order the credits were issued in to make that 
determination.  DOR assumes it would be solely the responsibility of the agency issuing the tax 
credit certificates to ensure they did not issue more credits than the cap allows.
This proposal adds a sunset clause to this program.  There is no fiscal impact from adding the 
sunset clause to this credit.  However, should this program actually be allowed to be sunset in the 
future, it would result in a savings to the State of the $40,500 annual cap on the program.
Officials from the Office of Administration – Budget & Planning (B&P) note this proposal 
would place a cap on the amount of Shared Care credits that may be redeemed each year.  The 
new cap shall the highest annual issued amount between FY23 and FY25.  B&P notes that FY25 
issuances are not yet known.  However, the current highest issuance amount was $42,000 in 
FY24.
This proposal would add a sunset clause to the Shared Care tax credit.  The three-year average 
redemptions were $15,728 in FY22-FY24.  Therefore, B&P estimates that if this credit is 
allowed to sunset, this could increase GR by $15,728 annually.
Oversight assumes this provision adds a formula based cap on the amount of tax credits issued 
for this program. Therefore, Oversight will show a range of impact of $0 to a potential savings if 
future redemptions are capped. 
Oversight assumes this proposal would add a sunset clause to the Shared Care tax credit. For 
purposes of this fiscal note, Oversight will not show a savings from the sunset provision.
Section 208.770 Family Development Account Tax Credit Program
Officials from the Department of Revenue (DOR state:
This is the Family Development Account tax credit program that provides low-income 
Missourians a matched savings program for purchasing a home.  The credit is 50% of the 
donated amount and this credit has a $300,000 cap.
This proposal adds a sunset clause to this program.  There is no fiscal impact from adding the 
sunset clause to this credit.  However, should this program actually be allowed to be sunset in the 
future, it would result in a savings to the State of up to the $300,000 annual cap on the program. 
YearAuthorizedIssued 
Total 
Redeemed
FY 2023$0.00$0.00$0.00FY 2022$0.00$0.00$0.00FY 2021$0.00$0.00$0.00FY 2020$0.00$8,414.00$33,801.00FY 2019$0.00$69,894.00$46,816.00 L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 40 of 59
February 19, 2025
BB:LR:OD
FY 2018$0.00$8,924.00$2,500.00FY 2017$75,000.00$0.00$0.00FY 2016$0.00$0.00$0.00FY 2015$0.00$0.00$0.00FY 2014$0.00$0.00$0.00FY 2013$0.00$0.00$0.00FY 2012$0.00$10,615.73$10,615.73TOTALS$75,000.00$97,847.73$93,732.73
Officials from the Office of Administration – Budget & Planning (B&P) note this proposal 
would add a sunset clause to the Family Development Account tax credit.  The three-year 
average redemptions were $0 in FY22-FY24.  Therefore, B&P estimates that if this credit is 
allowed to sunset, this could increase GR by $0 annually.
Officials from the Department of Economic Development (DED) assume the Section 
208.770.7 adds a sunset date for Family Development Account program of 12/31/2030 if it is not 
reauthorized. Could be future cost savings if not reauthorized.
Oversight assumes there is no fiscal impact from this provision.
Section 320.092 - Annual reporting requirements for certain tax credits
Officials from the Department of Revenue (DOR) assume this provision removes old statutory 
references and will have no impact on their respective organizations; Therefore, Oversight will 
reflect a zero impact in the fiscal note.  
Section 348.505 Family Farm Breeding Stock Tax Credit Program
Officials from the Department of Revenue (DOR) note:
This is the family farm breeding stock tax credit program that gives a tax credit to banks who 
make loans to beginning farmers. The credit is equal to the interest on their loans.  This program 
has a $300,000 cap. 
This proposal adds a sunset clause to this program.  There is no fiscal impact from adding the 
sunset clause to this credit.  However, should this program actually be allowed to be sunset in the 
future, it would result in a savings to the State of up to the $300,000 annual cap on the program. L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 41 of 59
February 19, 2025
BB:LR:OD
For informational purposes only, DOR is providing the history of the issuances and redemptions 
of this credit.  
YearAuthorizedIssued 
Total 
Redeemed
FY 
2024$34,583.42$36,753.24$7,758.68
FY 
2023$40,210.98$22,196.99$18,191.09
FY 
2022$16,936.36$16,334.26$24,021.17
FY 
2021$12,488.50$2,429.88$18,232.07
FY 
2020$26,849.87$16,817.30$9,636.08
FY 
2019$14,898.18$39,235.88$34,022.54
FY 
2018$42,093.03$52,507.91$106,558.44
FY 
2017$66,801.60$70,892.19$27,178.36
FY 
2016$72,855.33$48,967.77$35,495.50
FY 
2015$40,506.00$39,309.78$24,981.60
FY 
2014$39,423.64$34,251.88$22,770.02
FY 
2013$39,732.39$35,044.24$32,032.50
FY 
2012$31,328.73$32,228.75$53,947.47
Officials from the Office of Administration – Budget & Planning (B&P) note this proposal 
would add a sunset clause to the Family Farm Livestock tax credit.  The three-year average 
redemptions were $16,657 in FY22-FY24.  Therefore, B&P estimates that if this credit is 
allowed to sunset, this could increase GR by $16,657 annually.
Oversight assumes this proposal adds a sunset clause to the Family Farm Livestock tax credit.  
The three-year average redemptions were $16,657 in FY22-FY24.  Oversight assumes that if this 
credit is allowed to sunset, this could increase GR by $16,657 annually after December 2031. For 
purposes of this fiscal note, Oversight will not show a savings from the sunset provision.
Section 447.708 Brownfield Tax Credit Programs L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 42 of 59
February 19, 2025
BB:LR:OD
Officials from the Department of Revenue (DOR) note:
This section sunsets the several brownfield tax credit programs.  The Brownfield credits are 
issued to organizations that are cleaning up hazardous waste sites.  There is no cap on the credits.  
This proposal adds a formula for setting a cap on this program starting July 1, 2026.  The cap is 
to be equal to the highest amount issued from FY 2023 to FY 2025.  DOR records show credits 
of $1,450,871 were issued in FY 2023 and $1,159,254 was issued in FY 2024.  DOR notes that 
the FY 2025 has not ended at the time of completing the fiscal note and therefore, DOR will 
show the cap as $1,450,871. 
This proposal says the new cap is to begin on July 1, 2026.  DOR assumes that this new cap 
would be applicable to any new credits issued as of that date and would not impact state revenue 
until the credits are redeemed in January 2027.  
For informational purposes only, DOR is providing the history of the authorizations, issuances 
and redemptions of this credit. 
 
YearAuthorizedIssued 
Total 
Redeemed
FY 
2024 $1,450,871.00$4,394,352.75
FY 
2023$1,462,558.00$1,159,254.20$7,410,817.14
FY 
2022 $0.00$1,820,303.75$3,192,241.11
FY 
2021$904,491.20$11,156,257.48$21,382,422.12
FY 
2020$12,188,931.00$13,854,367.90$9,645,097.05
FY 
2019$2,000,000.00$15,475,687.72$13,028,587.52
FY 
2018$10,167,653.00$23,391,582.53$3,159,639.24
FY 
2017$43,899,062.00$3,705,982.09$2,385,022.74
FY 
2016$557,548.00$9,831,947.29$11,205,913.79
FY 
2015$2,660,872.00$1,634,971.01$7,492,114.03
FY 
2014 $0.00$3,716,636.73$5,354,818.52 L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 43 of 59
February 19, 2025
BB:LR:OD
FY 
2013$11,913,711.00$9,851,350.41$6,378,613.00
FY 
2012$3,234,873.00$7,717,894.78$16,967,399.84
Officials from the Office of Administration – Budget & Planning (B&P) note this proposal 
would add a sunset clause to the Brownfield tax credits.  B&P notes that the Brownfield 
Demolition credit has not had a redemption since FY09. The Brownfield Jobs and Investment 
credit has not had a redemption since FY15.  
The three-year average redemptions were $4,999,137 for Brownfield Remediation credits in 
FY22-FY24.  Therefore, B&P estimates that if this credit is allowed to sunset, this could increase 
GR by $4,999,137 annually.
This proposal would place a cap on the amount of Brownfield credits that may be redeemed each 
year.  The new cap shall the highest annual issued amount between FY23 and FY25.  B&P notes 
that FY25 issuances are not yet known.  However, the current highest issuance amount was 
$1,820,304 in FY22.
Officials from the Department of Economic Development (DED) assume Section 447.708 
adds a sunset date for Brownfield Redevelopment of 08/28/2031 if it is not reauthorized. The 
language specifies a cap equal to the highest year of tax credits issued from FY23 - FY25. The 
cap will be based on FY25, which is not complete yet. Based on this, the cap is estimated to be 
$1,159,254.
Oversight assumes this provision adds a formula based cap on the amount of tax credits issued 
for this program. Therefore, Oversight will show a range of impact of $0 to a potential savings if 
future redemptions are capped. 
Oversight notes this proposal adds a sunset clause to this program; therefore, Oversight will note 
the average utilization in last 12 years as the potential savings of $1,159,254 to the general 
revenue fund after December 31, 2031 if the proposal were allowed to sunset. For purposes of 
this fiscal note, Oversight will not show a savings from the sunset provision.
Section 620.1910 Manufacturing Jobs Act
Officials from the Department of Revenue (DOR) assume this proposal is modifying 
definitions in the Manufacturing Jobs Act tax credit program.  It should be noted that this 
program sunset on October 12, 2016, and therefore, changing these definitions will not result in 
any additional impact to the state.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero 
impact in the fiscal note.   L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 44 of 59
February 19, 2025
BB:LR:OD
Section 620.2010 Missouri Works Program  
Officials from the Department of Revenue (DOR) assume this proposal is modifying 
definitions in the Manufacturing Jobs Act tax credit program.  It should be noted that this 
program sunset on October 12, 2016, and therefore, changing these definitions will not result in 
any additional impact to the state. 
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero 
impact in the fiscal note.  
Officials from the Department of Economic Development (DED) assume this proposal adds a 
sunset date for Manufacturing Jobs Act of 08/28/2031 if it is not reauthorized.
 
Bill as whole: 
Section 620.2020 Missouri Works Program  
Officials from the Department of Revenue (DOR) assume this section repeals language from 
the statute referencing obsolete tax credits that are repealed in this proposal.  This will not have 
any fiscal impact on DOR.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero 
impact in the fiscal note.  
Section 99.1205 - Distressed Area Land Assemblage Tax Credit 
Officials from the Department of Revenue (DOR) assume this provision is the Distressed Area 
Land Assemblage tax credit program that awarded credits to a developer in St. Louis.  It had a 
cumulative cap of $20 million and expired as of August 28, 2013.  It had a six year carry forward 
that has expired.  Repealing this would not have a fiscal impact on DOR.  
Section 135.313 - Charcoal Producers Tax Credit
Officials from the Department of Revenue (DOR) assume this provision is the Charcoal 
Producers tax credit program that gave a tax credit for control technology equipment connected 
with the production of charcoal.  The credit was to be claimed in 1998 and could be carried 
forward to the next eight years.  The carry forward period has expired.  Repealing this would not 
have a fiscal impact on DOR.  
Section 135.500, 135.503, 135.505, 135.508, 135.516, 135.523, 135.526, 135.529 – Missouri 
Certified Capital Company (CAPCO) Law & Tax Credit
Officials from the Department of Revenue (DOR) assume this program has expired.  Repealing 
this program would not have a fiscal impact on DOR.   L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 45 of 59
February 19, 2025
BB:LR:OD
Section 135.535 Rebuilding Communities Tax Credit
Officials from the Department of Revenue (DOR) assume this provision is the Rebuilding 
Communities tax credit that gave a credit for businesses locating to a distressed community.  The 
program ended on August 28, 2013, when it was replaced with the MO Works program.  
Repealing this would not have a fiscal impact on DOR.
Section 135.545 & 135.546 – Transportation Development Tax Credit
Officials from the Department of Revenue (DOR) assume this is the Transportation 
Development tax credit program that had a $10 million cap.  It had a 10 year carry forward 
which has expired.  Repealing this would not have a fiscal impact on DOR.  
Section 135.679 Qualified Beef Tax Credit
Officials from the Department of Revenue (DOR) assume this is the qualified beef tax credit 
program that gave farmers a credit based on the weight of cattle.  This program sunset on 
December 31, 2021.  Repealing this would not have a fiscal impact on DOR.   L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 46 of 59
February 19, 2025
BB:LR:OD
Section 135.680 & 135.682 - New Markets Tax Credit  
Officials from the Department of Revenue (DOR) assume this is the New Markets tax credit 
program that stopped in 2010.  It had a 5 year carry forward that has expired.  Repealing this 
would not have a fiscal impact on DOR.
Section 135.700 - Wine and Grape Tax Credit 
Officials from the Department of Revenue (DOR) assume this is the Wine and Grape tax credit 
program that provides a company with tax credits for the purchase price of new equipment and 
materials used to increase production of wine in this state.  The Missouri House of 
Representatives has voted each year since FY 2019 to not allow any credits to be authorized.  
Repealing this would not have a fiscal impact on DOR.
Section 135.710 - Alternative Fuel Tax Credit
Officials from the Department of Revenue (DOR) assume this is the Alternative Fuel tax credit 
program that provided reimbursement of expenses for installing alternative fuel pumps at a gas 
station. This proposal stopped in 2018 and the 2 year carry forward has expired.  Repealing this 
would not have a fiscal impact on DOR.
Section 135.766 – Guarantee Fee Tax Credit
Officials from the Department of Revenue (DOR) assume this is the Guarantee Fee tax credit 
program that provided a tax credit for 30 days after the effective date of the bill which was 
August 28, 1999.  This program has expired.  Repealing this would not have a fiscal impact on 
DOR.
Section 135.950, 135.953, 135.957, 135.960, 135.963, 135.967, 135.968, 135.970 & 135.973 
Enhanced Enterprise Zone Tax Credit
Officials from the Department of Revenue (DOR) assume this provision is the Enhanced 
Enterprise Zone tax credit that gave a credit for expanding a business in an enhanced enterprise 
zone.  The program ended on August 28, 2013, when it was replaced with the MO Works 
program.  Repealing this would not have a fiscal impact on DOR.
Section 135.1125 Unmet Health Need Tax Credit
Officials from the Department of Revenue (DOR) assume this provision is the unmet health 
need tax credit program.  This program was not implemented as no organizations came forward 
wanting to participate.  This program had no authorizations, issuances or redemptions.  
Repealing this would not have a fiscal impact on DOR. L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 47 of 59
February 19, 2025
BB:LR:OD
Officials from the Department of Social Services note the Section was removed. 
Section 173.196 – Higher Education Scholarship Program Tax Credit
Officials from the Department of Revenue (DOR) assume this is the Higher Education tax 
credit that provided a credit for contributions to a scholarship program.  This program expired in 
2005.  Repealing this would not have a fiscal impact on DOR.
Section 320.093 - Dry Fire Hydrant Tax Credit
Officials from the Department of Revenue (DOR) assume this is the Dry Fire Hydrant tax 
credit program that provided a credit for businesses that implemented fire protection controls.  
This program expired in 2010.  Repealing this would not have a fiscal impact on DOR.
Sections 348.300, 348.302, 348.304, 348.306, 348.308, 348.310, 348.312, 348.316, 348.318, 
620.641 & 620.644 - Seed Capitol Tax Credit 
Officials from the Department of Revenue (DOR) assume this is the Seed Capitol tax credit 
program that expired in 1996.  Repealing this would not have a fiscal impact on DOR.
Sections 620.1875, 620.1878, 620.1881, 620.1884, 620.1887 & 620.1891 MO Quality Jobs
Officials from the Department of Revenue (DOR) assume this is the MO Quality Jobs program 
that expired on August 28, 2013.  It was replaced by the MO Works program.  Repealing this 
would not have a fiscal impact on DOR.
Section 620.635, 620.638, 620.647, 620.650, 620.653 - New Enterprise Creation Act Tax Credit
Officials from the Department of Revenue (DOR) assume this is the Innovation Campus tax 
credit program that sunset in 2020.  It appears it was never implemented.  Repealing this would 
not have a fiscal impact on DOR.
Section 620.2600 - Innovation Campus Tax Credit Act
Officials from the Department of Revenue (DOR) assume this is the Innovation Campus tax 
credit program that sunset in 2020.  It appears it was never implemented.  Repealing this would 
not have a fiscal impact on DOR.
Officials from the Office of Administration – Budget & Planning (B&P) assumethis proposal 
also repeals multiple tax credit programs. B&P notes that these credits are currently inactive or 
have already sunset. Therefore, these changes will not impact TSR.   L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 48 of 59
February 19, 2025
BB:LR:OD
Administration of the New Tax Credit Changes
Officials from the Department of Revenue (DOR) assume all of these changes will require 
updates to their website.  Those changes will be done by staff using existing resources.  Each 
modification of a credit on the MO-TC form will have a cost.  These changes will require 
additional resources of at least $10,000. 
Oversight notes the DOR estimate fiscal impact in order to make computer and website changes 
stemming from the change to the various tax credit. Oversight does not have any information to 
the contrary. Therefore, Oversight will reflect the DOR’s estimated impact in the fiscal note. 
Section 135.835 Newly Created Tax Credit Provisions
Officials from the Department of Revenue (DOR) assume this section of statutes will create 
new guiding rules for tax credits. DOR has addressed each of them separately below:
Section 135.835.3 - Carry Forward 3-year limit
Officials from the Department of Revenue (DOR) assume Section 135.835.3 implements a 
limit of three years on a credit with existing carry forward language.  Therefore, any credit with a 
carry forward longer than three years currently would be limited to the three years.  DOR notes 
that if the same number of credits end up being redeemed in the shorten timeframe this would 
not impact the state.  However, if this results in few credits being redeemed this could result in a 
savings to the state.  DOR assumes this would result in an Unknown negative to Unknown 
positive.
DOR notes this would impact the following tax credit programs with the following existing carry 
forwards. 
Affordable Housing – 10 years
Agricultural Product Utilization Contributor – 4 year
Bank S Corp – 5 year
Brownfield Remediation – 20 years
Capitol Complex Artifact – 4 years
Capitol Complex Monetary – 4 years
Champion for Children – 5 years
Developmental Disability – 4 years
Disabled Access Small Business – unlimited
Entertainment Jobs Music Industry– 5 years
Ethanol – 5 years
Health Insurance Pool – unlimited
Historic Preservation – 10 years
Low Income Housing – 5 years
Meat Processing – 4 years L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 49 of 59
February 19, 2025
BB:LR:OD
MDFB Bond Guarantee – 10 years
MDFB Infrastructure – 5 years
MO Empowerment (MOScholars) – 4 years
MO Exam Fee – 5 years
Motion Media – 5 years
Neighborhood Assistance – 5 years
Neighborhood Preservation – 5 years
New Generation Cooperative – 4 years
Qualified Research – 12 years
Residential Treatment Agency – 4 years
Rural Access to Capital – 5 years
Unmet Health Need – 4 years
SALT Parity Act – unlimited
Small Business Incubator – 5 years
Wood Energy – 4 years
Youth Opportunities – 5 years
DOR assumes they will need to update the tax credit program to modify the carry forward dates.  
This could also result in at least $10,000 in computer costs.
Section 135.835.4 - Subject to Appropriations
Officials from the Department of Revenue (DOR) assume that beginning on July 1, 2026, all 
tax credits are to become subject to appropriations.  If no appropriation is made for a tax credit, 
then no credit can be issued.  DOR notes that currently only the Rolling Stock and Wood Energy 
tax credit programs are subject to appropriations.  
After a person calculates their tax liability, if they have a properly issued tax certificate, they can 
attach that to their tax return, and it reduces the amount of tax liability they are required to pay 
the state.  Therefore, tax credits reduce the amount of tax revenue received by the state.  DOR 
notes that over $600 million in tax credits are redeemed annually.
DOR notes that should a tax credit program receive full appropriation authority each year then, 
this proposal would not have a fiscal impact.  If a tax credit program does not receive full 
appropriation authority each year, then it could result in a savings to the state.  
DOR notes that the FY 2026 budget will have been completed and in effect prior to this bill’s 
passage.  And therefore, they assume no tax credits could be authorized or issued for FY 2026.  
This proposal indicates that the self-employed health insurance, Mo Working Family (Mo 
EITC), SALT parity act, bank tax credit for S corporations and the bank franchise tax credit are 
exempt from this newly created appropriation rule.  DOR notes that the language of this bill is 
stopping five tax credits and therefore, they will not be impacted by these provisions.   L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 50 of 59
February 19, 2025
BB:LR:OD
DOR notes this will require them to update the tax credit computer programs annually based on 
the amount of the appropriation.  DOR notes that they currently pay $1,832 per tax credit change 
annually.  DOR will need appropriation authority each year to make changes to implement this 
provision.
Section 135.835.2 – Cumulative Cap on Credits
Officials from the Department of Revenue (DOR) assume that Section 135.835.2 will create in 
essence a maximum cap on the combination of all credits.  Starting January 1, 2026, any law 
enacting a new tax credit or increasing the cap on an existing credit will require a reduction equal 
to the increased cap amount or new tax credit cap.  Therefore, this proposal will require the 
elimination or reduction of existing credits in order to expand or create a new credit.  
DOR assumes this proposal is creating a balancing rule for the general assembly and tax credits.  
DOR assumes no administrative fiscal impact from a new rule.  DOR notes that several tax credit 
programs do not have a cap, some of which were mentioned in the bill and some that are not.  
Specifically, the adoption credit program and the senior property tax credit program do not 
currently have caps nor are caps created for these programs in this proposal.  DOR is unsure how 
a cumulative cap would be implemented. DOR is not involved in the appropriation authority and 
therefore assumes no impact from this provision.
Officials from the Office of Administration – Budget & Planning (B&P) note:
Subsection 135.835.2 states that beginning tax year 2026, any time a new credit is created, or the 
limit on an existing credit is increased, an offset must occur in another existing tax credit 
program.  
Subsection 135.835.3 limits all carry forward periods to three years, starting with tax credits 
issued for tax year 2026.  B&P notes that per statute, the following active tax credit programs 
have carry-forward lengths longer than three years:
Unlimited


10 – 20 Years






 L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 51 of 59
February 19, 2025
BB:LR:OD










5 Years



 
4 Years








Subsection 135.835.4 requires all credits to be appropriated beginning with FY26.  If there is no 
appropriation for a tax credit, then that credit may not be issued during the fiscal year.  The 
following tax credits do not have to be appropriated:





This proposal would not become effective until August 28, 2025. Which is after the start of 
FY26 and after FY26 appropriations have been made.  Therefore, other than the wood energy 
and rolling stock tax credit (both currently appropriated), B&P assumes that no tax credit could 
be issued during FY26, unless issued between July 1, 2025 and August 27, 2025.   L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 52 of 59
February 19, 2025
BB:LR:OD
B&P further notes that this proposal would limit tax credit issuance, not tax credit authorizations.  
Under this language departments could still authorize tax credits but may be unable to issue 
them.  
In addition, it is unclear how this would impact programs that are authorized up front, but issued 
over a number of years per statute (such as Low-Income Housing and Rural Access to Capital).
B&P notes that not all tax credits are issued.  Some credits (such as all administered by DOR and 
DCI) are only authorized.  Therefore, it is not clear how this appropriation language would 
apply, if at all, to those programs.
In FY24, total tax credit redemptions were $906,727,926.  Removing the five programs that will 
not be subject to appropriation, redemptions were $476,736,226.  Therefore, if no credits were 
appropriated, this provision could increase TSR and GR by $476,736,226.
Oversight notes that DOR and B&P both assume that by enacting Section 135.835.2, beginning 
FY 2026, any time a new credit is created, or the limit on an existing credit is increased, an offset 
must occur in another existing tax credit program, effectively a cumulative tax credit cap. 
Oversight assumes this would result in an unknown saving to the General Revenue fund if future 
tax credit redemptions were limited. 
Oversight notes the DOR and B&P both assume that the proposal, Section 135.835.4, requires 
all credits subject to the appropriation, to be appropriated beginning with FY26. However, if 
there is no appropriation for a tax credit, then that credit may not be issued during the fiscal year. 
Oversight notes that there are exclusions to the appropriation rule as follows: 
• Self-Employed Health Insurance 
• MO Working Family
• SALT Parity
• Bank Tax Credits for S-Corporations
• Bank Franchise
Therefore, Oversight will reflect savings up to current redemption amounts $476,736,226 to 
zero (continuation of the tax credit if all appropriated at current maximum cap) to reflect the 
changes within the proposed language.   
Officials from the Office of Administration – Budget & Planning (B&P) note: 
Repealed
This proposal also repeals multiple tax credit programs.  B&P notes that these credits are 
currently inactive or have already sunset.  Therefore, these changes will not impact TSR.  
Repealed credits: L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 53 of 59
February 19, 2025
BB:LR:OD
• Section 99.1205 – Distressed Area Land Assemblage
• Section 135.313 – Charcoal Producers
• Section 135.403 – Community Development Bank
• Sections 135.500 to 135.529 – Certified Capital
• Section 135.535 – Rebuilding Communities
• Sections 135.545 and 135.546 – Transportation Development
• Section 135.679 – Qualified Beef
• Sections 135.680 and 135.682 – New Markets
• Section 135.700 – Wine and Grape
• Section 135.710 – Alternative Fuel Stations
• Section 135.766 – Small Business Guarantee Fee
• Sections 135.950 to 135.973 – Enhanced Enterprise Zones
• Section 135.1125 – Health, Hunger, and Hygiene
• Section 173.196 – Scholarship Donations
• Section 320.093 – Dry Fire Hydrant
• Sections 348.300 (both) to 348.318 – Seed Capital
• Sections 620.635 to 620.653 – New Enterprise Creation
• Sections 620.1875 to 620.1890 – MO Quality Jobs
• Section 620.2600 – Innovation Campus
Officials from Department of Social Services (DSS) assume the Division of Finance and 
Administrative Services would require 2 FTE (Administrative Support Professional at $48,581) 
in order to perform the additional tax credit duties and administer the additional tax credits 
proposed in this bill. 
Officials from the DSSrelates to tax credits for maternity homes. DSS was 
already administering this tax credit, and the only change was adding sunset provision language.
Oversight notes the DSS assumes the need for 2 FTE in order to properly comply and administer 
all of the changes specified in this proposal. Therefore, Oversight will reflect DSS FTE in the 
fiscal note effective FY 2026.
Officials from the Department of Economic Development (DED) note:
Section 135.460 adds a sunset date for Youth Opportunities Program of 08/28/2031 if it is not 
reauthorized.
Section 135.487 adds a sunset date for Neighborhood Preservation Act of 08/28/2031 if it is not 
reauthorized.
Section 208.770 adds a sunset date for Family Development Account program of 08/28/2031 if it 
is not reauthorized.
135.700 The Wine & Grape Tax Credit language is removed from statute. L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 54 of 59
February 19, 2025
BB:LR:OD
Officials from the Missouri Department of Agriculture (MDA)
does not receive any General Revenue or Federal Funds to administer any programs. All 
revenues are fees based, which pay for administrative costs. States Section 348.080 gives 
MASBDA the authority to collect fees and charges, as the authority determines to be reasonable, 
in connection with its loans, advances, insurance, commitments, and servicing. Each grant 
program has a bank account set up for all administrative/program activities. The .40 FTE 
personnel salary costs included in this aren't FTE they need, only the funding that would be 
required to support their 5 current employees who administer these tax credit programs. These 
staff are currently administering 18 active programs also. While this legislation moves these tax 
credits programs to the Department of Agriculture, information/reports that they would need 
would still be required from DOR and DNR in order for them to administer that piece. Their 
assumption is the supporting role of Weights & Measures division to validate the biodiesel blend 
a retail dealer claim's is accurate will require limited compliance checks & the cost can be 
absorbed by MDA. However, if the assumption is incorrect and the requirement for a more 
stringent proof of compliance is required, then there would likely be an additional impact for the 
Weights and Measures Division. 
The 2 FTE and GR funding will be needed in order to take on the additional work that their 
current staff can’t absorb due to their work load and administering 20 active programs also.
Oversight notes the MDA assumes the need for an additional 2 FTE in order to support current 5 
FTE staff to administer and maintain the current tax credits, specifically Section(s) 135.772; 
135.775, and 135.778 . Therefore, Oversight will note the MDA 2 FTE (Senior AG Marketing 
Specialist $58,965 and Accountant at $53,866) in the fiscal note effective FY 2026.
Officials from the Department of Commerce and Insurance (DCI) note: 
Sections 100.286, 100.297, 100.850, 135.460, 208.770, 348.505, and 447.708:
A potential unknown positive fiscal impact on premium tax revenues (up to the tax credit limit 
established in the bill) after 2031 as a result of the modifications to sunset provisions of various 
tax credits.
Section 135.110:
A potential unknown fiscal impact on premium tax revenues (up to the tax credit limit 
established in the bill) as a result of the modification to the cap amount of credits.
Sections 135.1150, 135.1180, and 143.471:
A potential unknown fiscal impact on premium tax revenues (up to the tax credit limit 
established in the bill) as a result of the modification to the cap amount of credits. In addition, a 
potential unknown positive fiscal impact on premium tax revenues (up to the tax credit limit  L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 55 of 59
February 19, 2025
BB:LR:OD
established in the bill) after 2031 as a result of the modifications to sunset provisions of various 
tax credits.
Sections 135.500 to 135.529, 135.535, 135.1125, 620.635 to 620.653, and 620.1875 to 620.1890:
A potential unknown positive fiscal impact on premium tax revenues (up to the tax credit limit 
established in the bill) as a result of the repeal of various tax credits.
Section 135.835:
A potential unknown fiscal impact on premium tax revenues (up to the tax credit limit 
established in the bill) after January 1, 2026, as a result of the repeal, modification, reduction, 
and restriction of carry forward beyond 3 years of various tax credits.
Premium tax revenue is split 50/50 between General Revenue and County Foreign Insurance 
Fund except for domestic Stock Property and Casualty Companies who pay premium tax to the 
County Stock Fund. The County Foreign Insurance Fund is later distributed to school districts 
throughout the state. County Stock Funds are later distributed to the school district and county 
treasurer of the county in which the principal office of the insurer is located. It is unknown how 
each of these funds may be impacted by tax credits each year and which insurers will qualify for 
the modified tax credits.
Oversight assumes the fiscal note does not reflect the possibility that some of the tax credits 
could be utilized by insurance companies against insurance premium taxes. If this occurs, the 
loss in tax revenue would be split between the General Revenue Fund and the County Foreign 
Insurance Fund, which ultimately goes to local school districts.
Officials from the Office of Administration - Administrative Hearing Commission, the 
Department of Mental Health, the Department of Natural Resources, the Department of 
Public Safety – Capital Police, the 
Department of Public Safety – State Emergency Management Agency, the Missouri 
Department of Conservation, the Missouri Department of Transportation, the Office of the 
State Treasurer, the Missouri University System, the Northwest Missouri State University, 
and theeach assume the proposal will have no fiscal impact on 
their organization. Oversight does not have any information to the contrary. Therefore, 
Oversight will reflect a zero impact in the fiscal note for above respective organizations.  
Officials from the Department of Health and Senior Services (DHSS) defer to the DOR for 
the potential fiscal impact of this proposal. 
Officials from the Department of Public Safety – Missouri Highway Patrol (MHP) defer to 
the DPS – Director’s Office for the potential fiscal impact of this proposal. 
Officials from the Office of Administration (OA) defer to the B&P for the potential fiscal 
impact of this proposal.  L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 56 of 59
February 19, 2025
BB:LR:OD
 Officials from the City of Kansas City, the City of OFallonPhelps County Sheriff, the 
Branson Police DepartmentKansas City Police Department, and the Saint Louis 
County Police Department each assume the proposal will have no fiscal impact on their 
organization. Oversight does not have any information to the contrary. Therefore, Oversight will 
reflect a zero impact in the fiscal note.  
 
Officials from the Metropolitan St. Louis Sewer District - 7B Sewer, the Morgan County 
Pwsd #2, the South River Drainage District - 7D LeveeWayne County Pwsd #2 each 
assume the proposal will have no fiscal impact on their organization. Oversight does not have 
any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note.  
Officials from the Oversight Division
Report pursuant to Section 23.253 RSMo; however, Oversight assumes it will be able to absorb 
the cost with the current budget authority
Rule Promulgation
Officials from the Joint Committee on Administrative Rules assume this proposal is not 
anticipated to cause a fiscal impact beyond its current appropriation. 
Officials from the Office of the Secretary of State (SOS) note many bills considered by the 
General Assembly include provisions allowing or requiring agencies to submit rules and 
regulations to implement the act. The SOS is provided with core funding to handle a certain 
amount of normal activity resulting from each year's legislative session. The fiscal impact for 
this fiscal note to the SOS for Administrative Rules is less than $5,000. The SOS recognizes that 
this is a small amount and does not expect that additional funding would be required to meet 
these costs. However, the SOS also recognizes that many such bills may be passed by the 
General Assembly in a given year and that collectively the costs may be in excess of what the 
office can sustain with its core budget. Therefore, the SOS reserves the right to request funding 
for the cost of supporting administrative rules requirements should the need arise based on a 
review of the finally approved bills signed by the governor. L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 57 of 59
February 19, 2025
BB:LR:OD
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUE FUNDSavings – DOR – removal of 
administration of the various tax credits 
to various agencies $0 or Unknown$0 or Unknown$0 or Unknown
Savings - Section 135.835 4 – if no 
credits were appropriated by the General 
Assembly p. 45-46
$0 up to 
$476,736,226
$0 up to 
$476,736,226
$0 up to 
$476,736,226
Savings - 135.835.2 – cumulative tax 
credit cap - p. 45$0 or Unknown$0 or Unknown$0 or Unknown
Savings – various sections – formula-
based cap for various tax credits$0 or Unknown$0 or Unknown$0 or Unknown
Costs – DSS – DFAS changes in 
Section(s) p. 46
   Personnel Service($80,968)($98,133)($99,115)  Fringe Benefits($56,415)($68,074)($68,455)  Expense & Equipment($41,306)($22,792)($23,362)Total Costs – DSS($178,689)($189,000)($190,931)FTE Change2 FTE2 FTE2 FTECosts – MDA –support FTE for changes 
in Section(s) 135.772; 135.775, 135.778 
p.47
   Personnel Service($118,796)($121,172)($123,595)  Fringe Benefits($85,514)($86,466)($87,438)  Expense & Equipment($38,385)($11,146)($11,369)Total Costs – MDA($242,695)($218,784)($222,401)FTE Change2 FTE2 FTE2 FTECosts – DPS (DO) – FTE for changes in 
Section(s) 135.090 – Officer Surviving 
Spouse – p. 9
   Personnel Service($57,260)($70,086)($71,488)  Fringe Benefits($36,110)($43,883)($44,444)  Expense & Equipment($3,777)($0)($0)Total Costs – DPS-DO($97,147)($113,969)($115,932) L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 58 of 59
February 19, 2025
BB:LR:OD
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028FTE Change1 FTE1 FTE1 FTECosts – DED – FTE for changes in 
Section(s) 135.490 and 135.562 – p. 19
   Personnel Service($69,820)($85,460)($87,169)  Fringe Benefits($41,144)($50,044)($50,729)  Expense & Equipment($18,479)($4,492)($4,582)Total Costs – DED($129,443)($139,996)($142,480)FTE Change1 FTE1 FTE1 FTECosts – DOR –Section 143.177 MO 
Family Tax Credit- ITSD and Form 
Changes for all above Section(s) p.42($11,527)($1,869)($1,906)
ESTIMATED NET EFFECT ON 
GENERAL REVENUE FUND
($659,501) to 
Could exceed 
$476,076,725 
($663,618) to 
Could exceed 
$476,072,608 
($673,650) to 
Could exceed 
$476,062,576
Estimated Net FTE Change on General 
Revenue
Up to
6 FTE
Up to
6 FTE
Up to
6 FTE
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0
FISCAL IMPACT – Small Business
A direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
This bill modifies the status of certain existing tax credits. 
This legislation is not federally mandated, would not duplicate any other program and would not 
require additional capital improvements or rental space. L.R. No. 0763H.03C 
Bill No. HCS for HB 1007  
Page 59 of 59
February 19, 2025
BB:LR:OD
SOURCES OF INFORMATION
Department of Revenue
Office of Administration – Budget and Planning 
Office of Administration
Office of Administration - Administrative Hearing Commission
Department of Mental Health
Department of Natural Resources
Department of Public Safety – Capital Police
Department of Public Safety – Fire Safety
Department of Public Safety – State Emergency Management Agency
Missouri Department of Conservation
Missouri Department of Transportation
Office of the State Treasurer
Missouri University System
Office of the Secretary of State
Joint Committee on Administrative Rules
Oversight Division
Metropolitan St. Louis Sewer District - 7B Sewer
Morgan County Pwsd #2
South River Drainage District - 7D Levee
Wayne County Pwsd #2
City of Kansas City
Kansas City Police Department
City of Ofallon
Phelps County Sheriff
Branson Police Department
Saint Louis County Police Department
Julie MorffJessica HarrisDirectorAssistant DirectorFebruary 19, 2025February 19, 2025