FIRSTREGULARSESSION
HOUSEBILLNO.1181
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVERIGGS.
2257H.01I JOSEPHENGLER,ChiefClerk
ANACT
Toamendchapter135,RSMo,byaddingtheretoonenewsectionrelatingtotaxcreditsfor
certainendowmentcontributions.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Chapter135,RSMo,isamendedbyaddingtheretoonenewsection,tobe
2knownassection135.1850,toreadasfollows:
135.1850.1.Thissectionshallbeknownandmaybecitedasthe"Missouri
2GivesTaxCreditAct".
3 2.Asusedinthissection,thefollowingtermsmean:
4 (1)"Businessentity",acorporation,trust,estate,partnership,limitedliability
5company,orsoleproprietorship;
6 (2)"Donoradvisedfund",thesamemeaningassuchtermisdefinedunder
7subsection(d)ofSection4966oftheInternalRevenueCodeof1986,asamended;
8 (3)"Endowmentgift",anirrevocablecontributiontoapermanentendowment
9fundheldbyaqualifiedcommunityfoundation;
10 (4)"Permanentendowmentfund",afundthat:
11 (a)Isheldbyaqualifiedcommunityfoundation;
12 (b)Providescharitablegrantsexclusivelyforthebenefitofresidentsofthestate
13orcharitiesandcharitableprojectslocatedinthestate;
14 (c)Isintendedtoexistinperpetuity;
15 (d)Hasanannualspendingratebasedonthefoundationspendingpolicy,but
16nottoexceedsevenpercent;and
17 (e)Isnotadonoradvisedfund;
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18 (5)"Qualifiedcommunityfoundation",acommunityfoundationorsimilar
19publiclysupportedorganizationdescribedunderSection170(b)(1)(A)(vi)oftheInternal
20RevenueCodeof1986,asamended,thatisorganizedoroperatinginthisstateandthat
21substantiallycomplieswiththenationalstandardsforU.S.communityfoundations
22establishedbytheCommunityFoundationsNationalStandards,asdeterminedbythe
23department;
24 (6)"Taxpayer",anyindividualorbusinessentitysubjecttothestateincometax
25imposedunderchapter143;
26 (7)"Taxcredit",acreditagainstthetaxotherwisedueunderchapter143,
27excludingwithholdingtaximposedundersections143.191to143.265.
28 3.ForalltaxyearsbeginningonorafterJanuary1,2026,ataxpayershallbe
29allowedtoclaimataxcreditagainstthetaxpayer'sstatetaxliabilityinanamountequal
30totwenty-fivepercentofacontributionmadeasanendowmentgifttoapermanent
31endowmentfundduringthetaxyear.
32 4.Taxcreditsissuedundertheprovisionsofthissectionshallnotberefundable.
33Notaxcreditclaimedunderthissectionshallbecarriedforwardtoanysubsequenttax
34year.Notaxcreditclaimedunderthissectionshallbeassigned,transferred,sold,or
35otherwiseconveyed.
36 5.Thecumulativeamountoftaxcreditsawardedtoanysingletaxpayerpertax
37yearshallnotexceedonehundredthousanddollarspertaxyear.Thecumulative
38amountofcontributionstoanyspecificqualifiedcommunityfoundationthatareeligible
39forthetaxcreditsunderthissectioninanytaxyearshallnotexceedthreemillion
40dollars.
41 6.(1)Thecumulativeamountoftaxcreditsallowedtoalltaxpayersunderthis
42sectionshallnotexceedfivemilliondollarspertaxyear.Iftheamountoftaxcredits
43claimedinataxyearunderthissectionexceedsfivemilliondollars,taxcreditsshallbe
44allowedbasedontheorderinwhichtheyareclaimed.
45 (2)Ofthecumulativeamountavailablefortaxcreditspertaxyeartoall
46taxpayersunderthissubsection,twenty-fivepercentshallbereservedforendowment
47giftsthatdonotexceedthesmall-giftmaximumsetforthinthissubdivision.Thesmall-
48giftmaximumistwenty-fivethousanddollars.Forpurposesofdeterminingifa
49donationmeetsthesmall-giftmaximum,theamountofthecreditauthorization
50certificateissuedbythedepartmentunderthissectionshallbeused.
51 7.Eachtaxpayerclaimingataxcreditunderthissectionshallfileareceiptand
52affidavitwithhisorherincometaxreturnverifyingtheamountthetaxpayer
53contributedasanendowmentgift,intheformandmannerasprescribedbythe
54department.Uponrequestbythedepartment,eachqualifiedcommunityfoundation
HB1181 2 55shallprovideinformationtothedepartmentconcerningtheidentityofeachtaxpayer
56makinganendowmentgiftandtheamountofthecontributionforthepurposesofthis
57section.
58 8.Notwithstandinganyprovisionofsection105.1500tothecontrary,any
59requirementtoprovideinformation,documents,orrecordsunderthissection,andany
60requirementestablishedbythedepartmentofrevenuetoprovideinformation,
61documents,orrecordsforthepurposeofadministeringandenforcingthissection,
62shallbeexemptfromsection105.1500.
63 9.Thetaxcreditauthorizedunderthissectionshallconstituteadomesticand
64socialtaxcredit,assuchtermisdefinedundersection135.800,andshallbesubjectto
65theprovisionsofsections135.800to135.830.
66 10.Thedepartmentofrevenueshallpromulgateallnecessaryrulesand
67regulationsfortheadministrationofthissectionincluding,butnotlimitedto,rules
68relatingtotheverificationofataxpayer'scontributionamount.Anyruleorportionofa
69rule,asthattermisdefinedinsection536.010,thatiscreatedundertheauthority
70delegatedinthissectionshallbecomeeffectiveonlyifitcomplieswithandissubjectto
71alloftheprovisionsofchapter536and,ifapplicable,section536.028.Thissectionand
72chapter536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
73pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannul
74arulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthority
75andanyruleproposedoradoptedafterAugust28,2025,shallbeinvalidandvoid.
76 11.Undersection23.253oftheMissourisunsetact:
77 (1)Theprovisionsofthenewprogramauthorizedunderthissectionshall
78automaticallysunsetonDecemberthirty-first,sixyearsaftertheeffectivedateofthis
79sectionunlessreauthorizedbyanactofthegeneralassembly;
80 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthissection
81shallautomaticallysunsetonDecemberthirty-first,twelveyearsaftertheeffectivedate
82ofthereauthorizationofthissection;
83 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryear
84immediatelyfollowingthecalendaryearinwhichtheprogramauthorizedunderthis
85sectionissunset;and
86 (4)Nothinginthissubsectionshallpreventataxpayerfromclaimingataxcredit
87properlyissuedbeforethisprogramwassunsetinataxyearaftertheprogramissunset.
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