Modifies provisions relating to the Missouri working family tax credit act and makes the tax credit refundable
The bill stipulates that for tax years prior to January 1, 2026, the percentage of the federal credit that can be claimed will start at ten percent. However, this percentage may increase to a maximum of twenty percent depending on the state’s revenue collections. Notably, the tax credits allowed will be applied against tax liabilities after reducing any other credits, and any amount exceeding tax liabilities will not be refunded or carried forward for subsequent years until 2026 when these tax credits become refundable.
House Bill 1479, introduced in the 103rd General Assembly, aims to modify the provisions related to the Missouri Working Family Tax Credit Act. This bill repeals an existing section of the tax code and enacts a new framework for implementing a tax credit for eligible taxpayers beginning with the 2023 calendar year. The proposed tax credit will allow eligible individuals to receive credit based on a percentage of the federal earned income tax credit they would qualify for, as of January 1, 2021.
Discussions surrounding HB1479 indicate a potential for contention regarding the refundable nature of the credits. Supporters argue that making the credits refundable will provide much-needed financial relief to low- to moderate-income families in Missouri, potentially stimulating economic growth. Critics may raise concerns about the implications of the tax credit structure on state revenue and whether it effectively supports the intended beneficiaries without creating budgetary constraints.