| 1 | 1 | | FIRSTREGULARSESSION |
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| 2 | 2 | | HOUSEBILLNO.1479 |
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| 3 | 3 | | 103RDGENERALASSEMBLY |
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| 4 | 4 | | INTRODUCEDBYREPRESENTATIVESTRICKLER. |
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| 5 | 5 | | 3035H.01I JOSEPHENGLER,ChiefClerk |
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| 6 | 6 | | ANACT |
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| 7 | 7 | | Torepealsection143.177,RSMo,andtoenactinlieuthereofonenewsectionrelatingto |
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| 8 | 8 | | incometaxes. |
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| 9 | 9 | | BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows: |
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| 10 | 10 | | SectionA.Section143.177,RSMo,isrepealedandonenewsectionenactedinlieu |
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| 11 | 11 | | 2thereof,tobeknownassection143.177,toreadasfollows: |
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| 12 | 12 | | 143.177.1.Thissectionshallbeknownandmaybecitedasthe"MissouriWorking |
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| 13 | 13 | | 2FamilyTaxCreditAct". |
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| 14 | 14 | | 3 2.Forpurposesofthissection,thefollowingtermsshallmean: |
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| 15 | 15 | | 4 (1)"Department",thedepartmentofrevenue; |
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| 16 | 16 | | 5 (2)"Eligibletaxpayer",aresidentindividualwithafilingstatusofsingle,headof |
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| 17 | 17 | | 6household,widowed,ormarriedfilingcombinedwhoissubjecttothetaximposedunderthis |
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| 18 | 18 | | 7chapter,excludingwithholdingtaximposedundersections143.191to143.265,andwhois |
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| 19 | 19 | | 8allowedafederalearnedincometaxcreditunder26U.S.C.Section32,asamended; |
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| 20 | 20 | | 9 (3)"Taxcredit",acreditagainstthetaxotherwisedueunderthischapter,excluding |
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| 21 | 21 | | 10withholdingtaximposedundersections143.191to143.265. |
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| 22 | 22 | | 11 3.(1)Beginningwiththe2023calendaryear,aneligibletaxpayershallbealloweda |
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| 23 | 23 | | 12taxcreditinanamountequaltoapercentageoftheamountsuchtaxpayerwouldreceive |
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| 24 | 24 | | 13underthefederalearnedincometaxcreditassuchcreditexistedunder26U.S.C.Section32 |
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| 25 | 25 | | 14asofJanuary1,2021,asprovidedpursuanttosubdivision(2)ofthissubsection.Thetax |
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| 26 | 26 | | 15creditallowedbythissectionshallbeclaimedbysuchtaxpayeratthetimesuchtaxpayerfiles |
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| 27 | 27 | | 16areturnandshallbeappliedagainsttheincometaxliabilityimposedbythischapterafter |
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| 28 | 28 | | 17reductionforallothercreditsallowedthereon.Foralltaxyearsbeginningonorbefore |
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| 29 | 29 | | EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis |
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| 30 | 30 | | intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18December31,2025,iftheamountofthecreditexceedsthetaxliability,thedifferenceshall |
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| 31 | 31 | | 19notberefundedtothetaxpayerandshallnotbecarriedforwardtoanysubsequenttaxyear, |
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| 32 | 32 | | 20butforalltaxyearsbeginningonorafterJanuary1,2026,taxcreditsissuedunderthe |
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| 33 | 33 | | 21provisionsofthissectionshallberefundable. |
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| 34 | 34 | | 22 (2)Subjecttotheprovisionsofsubdivision(3)ofthissubsection,thepercentageof |
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| 35 | 35 | | 23thefederalearnedincometaxcredittobeallowedasataxcreditpursuanttosubdivision(1) |
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| 36 | 36 | | 24ofthissubsectionshallbetenpercent,whichmaybeincreasedtotwentypercentsubjectto |
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| 37 | 37 | | 25theprovisionsofsubdivision(3)ofthissubsection.Themaximumpercentagethatmaybe |
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| 38 | 38 | | 26claimedasataxcreditpursuanttothissectionshallbetwentypercentofthefederalearned |
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| 39 | 39 | | 27incometaxcreditthatmaybeclaimedbysuchtaxpayer.Anyincreaseinthepercentagethat |
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| 40 | 40 | | 28maybeclaimedasataxcreditshalltakeeffectonJanuaryfirstofacalendaryearandsuch |
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| 41 | 41 | | 29percentageshallcontinueineffectuntilthenextpercentageincreaseoccurs.Anincrease |
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| 42 | 42 | | 30shallonlyapplytotaxyearsthatbeginonoraftertheincreasetakeseffect. |
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| 43 | 43 | | 31 (3)Theinitialpercentagetobeclaimedasataxcreditandanyincreaseinthe |
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| 44 | 44 | | 32percentagethatmaybeclaimedpursuanttosubdivision(2)ofthissubsectionshallonlyoccur |
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| 45 | 45 | | 33iftheamountofnetgeneralrevenuecollectedinthepreviousfiscalyearexceedsthehighest |
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| 46 | 46 | | 34amountofnetgeneralrevenuecollectedinanyofthethreefiscalyearspriortosuchfiscal |
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| 47 | 47 | | 35yearbyatleastonehundredfiftymilliondollars. |
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| 48 | 48 | | 36 4.Notwithstandingtheprovisionsofsection32.057tothecontrary,thedepartment |
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| 49 | 49 | | 37shalldeterminewhetheranytaxpayerfilingareportorreturnwiththedepartmentwhodidnot |
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| 50 | 50 | | 38applyforthecreditauthorizedunderthissectionmayqualifyforthecreditand,ifso, |
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| 51 | 51 | | 39determinesataxpayermayqualifyforthecredit,shallnotifysuchtaxpayerofhisorher |
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| 52 | 52 | | 40potentialeligibility.Inmakingadeterminationofeligibilityunderthissection,the |
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| 53 | 53 | | 41departmentshalluseanyappropriateandavailabledataincluding,butnotlimitedto,data |
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| 54 | 54 | | 42availablefromtheInternalRevenueService,theU.S.DepartmentofTreasury,andstate |
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| 55 | 55 | | 43incometaxreturnsfromprevioustaxyears. |
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| 56 | 56 | | 44 5.Thedepartmentshallprepareanannualreportcontainingstatisticalinformation |
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| 57 | 57 | | 45regardingthetaxcreditsissuedunderthissectionfortheprevioustaxyear,includingthetotal |
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| 58 | 58 | | 46amountofrevenueexpended,thenumberofcreditsclaimed,andtheaveragevalueofthe |
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| 59 | 59 | | 47creditsissuedtotaxpayerswhoseearnedincomefallswithinvariousincomeranges |
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| 60 | 60 | | 48determinedbythedepartment. |
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| 61 | 61 | | 49 6.Thedirectorofthedepartmentmaypromulgaterulesandregulationstoadminister |
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| 62 | 62 | | 50theprovisionsofthissection.Anyruleorportionofarule,asthattermisdefinedinsection |
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| 63 | 63 | | 51536.010,thatiscreatedundertheauthoritydelegatedinthissectionshallbecomeeffective |
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| 64 | 64 | | 52onlyifitcomplieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable, |
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| 65 | 65 | | 53section536.028.Thissectionandchapter536arenonseverableandifanyofthepowers |
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| 66 | 66 | | 54vestedwiththegeneralassemblypursuanttochapter536toreview,todelaytheeffective |
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| 67 | 67 | | HB1479 2 55date,ortodisapproveandannularulearesubsequentlyheldunconstitutional,thenthegrant |
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| 68 | 68 | | 56ofrulemakingauthorityandanyruleproposedoradoptedafterJanuary1,2023,shallbe |
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| 69 | 69 | | 57invalidandvoid. |
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| 70 | 70 | | 58 7.Taxcreditsauthorizedunderthissectionshallnotbesubjecttotherequirementsof |
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| 71 | 71 | | 59sections135.800to135.830. |
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| 72 | 72 | | âś” |
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| 73 | 73 | | HB1479 3 |
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