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