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Missouri House Bill HB860

Missouri 2025 Regular Session

Missouri House Bill HB860 Compare Versions

Only one version of the bill is available at this time.
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11 FIRSTREGULARSESSION
22 HOUSEBILLNO.860
33 103RDGENERALASSEMBLY
44 INTRODUCEDBYREPRESENTATIVESIMMONS.
55 1878H.01I JOSEPHENGLER,ChiefClerk
66 ANACT
77 Torepealsection143.121,RSMo,andtoenactinlieuthereofonenewsectionrelatingto
88 incometaxdeductionsforcertaintypesofemployeecompensation.
99 BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
1010 SectionA.Section143.121,RSMo,isrepealedandonenewsectionenactedinlieu
1111 2thereof,tobeknownassection143.121,toreadasfollows:
1212 143.121.1.TheMissouriadjustedgrossincomeofaresidentindividualshallbethe
1313 2taxpayer'sfederaladjustedgrossincomesubjecttothemodificationsinthissection.
1414 3 2.Thereshallbeaddedtothetaxpayer'sfederaladjustedgrossincome:
1515 4 (1)Theamountofanyfederalincometaxrefundreceivedforaprioryearwhich
1616 5resultedinaMissouriincometaxbenefit.Theamountaddedpursuanttothissubdivision
1717 6shallnotincludeanyamountofafederalincometaxrefundattributabletoataxcredit
1818 7reducingataxpayer'sfederaltaxliabilitypursuanttoPublicLaw116-136or116-260,enacted
1919 8bythe116thUnitedStatesCongress,forthetaxyearbeginningonorafterJanuary1,2020,
2020 9andendingonorbeforeDecember31,2020,anddeductedfromMissouriadjustedgross
2121 10incomepursuanttosection143.171.Theamountaddedunderthissubdivisionshallalsonot
2222 11includeanyamountofafederalincometaxrefundattributabletoataxcreditreducinga
2323 12taxpayer'sfederaltaxliabilityunderanyotherfederallawthatprovidesdirecteconomic
2424 13impactpaymentstotaxpayerstomitigatefinancialchallengesrelatedtotheCOVID-19
2525 14pandemic,anddeductedfromMissouriadjustedgrossincomeundersection143.171;
2626 15 (2)Interestoncertaingovernmentalobligationsexcludedfromfederalgrossincome
2727 16by26U.S.C.Section103oftheInternalRevenueCode,asamended.Theprevioussentence
2828 17shallnotapplytointerestonobligationsofthestateofMissourioranyofitspolitical
2929 EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
3030 intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18subdivisionsorauthoritiesandshallnotapplytotheinterestdescribedinsubdivision(1)of
3131 19subsection3ofthissection.Theamountaddedpursuanttothissubdivisionshallbereduced
3232 20bytheamountsapplicabletosuchinterestthatwouldhavebeendeductibleincomputingthe
3333 21taxableincomeofthetaxpayerexceptonlyfortheapplicationof26U.S.C.Section265ofthe
3434 22InternalRevenueCode,asamended.Thereductionshallonlybemadeifitisatleastfive
3535 23hundreddollars;
3636 24 (3)Theamountofanydeductionthatisincludedinthecomputationoffederal
3737 25taxableincomepursuantto26U.S.C.Section168oftheInternalRevenueCodeasamended
3838 26bytheJobCreationandWorkerAssistanceActof2002totheextenttheamountdeducted
3939 27relatestopropertypurchasedonorafterJuly1,2002,butbeforeJuly1,2003,andtothe
4040 28extenttheamountdeductedexceedstheamountthatwouldhavebeendeductiblepursuantto
4141 2926U.S.C.Section168oftheInternalRevenueCodeof1986asineffectonJanuary1,2002;
4242 30 (4)Theamountofanydeductionthatisincludedinthecomputationoffederal
4343 31taxableincomefornetoperatinglossallowedby26U.S.C.Section172oftheInternal
4444 32RevenueCodeof1986,asamended,otherthanthedeductionallowedby26U.S.C.Section
4545 33172(b)(1)(G)and26U.S.C.Section172(i)oftheInternalRevenueCodeof1986,as
4646 34amended,foranetoperatinglossthetaxpayerclaimsinthetaxyearinwhichthenet
4747 35operatinglossoccurredorcarriesforwardforaperiodofmorethantwentyyearsandcarries
4848 36backwardformorethantwoyears.Anyamountofnetoperatinglosstakenagainstfederal
4949 37taxableincomebutdisallowedforMissouriincometaxpurposespursuanttothissubdivision
5050 38afterJune18,2002,maybecarriedforwardandtakenagainstanyincomeontheMissouri
5151 39incometaxreturnforaperiodofnotmorethantwentyyearsfromtheyearoftheinitialloss;
5252 40and
5353 41 (5)Fornonresidentindividualsinall[taxable] taxyearsendingonorafterDecember
5454 4231,2006,theamountofanypropertytaxespaidtoanotherstateorapoliticalsubdivisionof
5555 43anotherstateforwhichadeductionwasallowedonsuchnonresident'sfederalreturninthe
5656 44[taxable] taxyearunlesssuchstate,politicalsubdivisionofastate,ortheDistrictof
5757 45Columbiaallowsasubtractionfromincomeforpropertytaxespaidtothisstateforpurposes
5858 46ofcalculatingincomefortheincometaxforsuchstate,politicalsubdivisionofastate,orthe
5959 47DistrictofColumbia;
6060 48 (6)ForalltaxyearsbeginningonorafterJanuary1,2018,anyinterestexpensepaid
6161 49oraccruedinaprevious[taxable] taxyear,butallowedasadeductionunder26U.S.C.
6262 50Section163,asamended,inthecurrent[taxable] taxyearbyreasonofthecarryforwardof
6363 51disallowedbusinessinterestprovisionsof26U.S.C.Section163(j),asamended.Forthe
6464 52purposesofthissubdivision,aninterestexpenseisconsideredpaidoraccruedonlyinthefirst
6565 53[taxable] taxyearthedeductionwouldhavebeenallowableunder26U.S.C.Section163,as
6666 54amended,ifthelimitationunder26U.S.C.Section163(j),asamended,didnotexist.
6767 HB860 2 55 3.Thereshallbesubtractedfromthetaxpayer'sfederaladjustedgrossincomethe
6868 56followingamountstotheextentincludedinfederaladjustedgrossincome:
6969 57 (1)Interestreceivedondepositsheldatafederalreservebankorinterestordividends
7070 58onobligationsoftheUnitedStatesanditsterritoriesandpossessionsorofanyauthority,
7171 59commissionorinstrumentalityoftheUnitedStatestotheextentexemptfromMissouri
7272 60incometaxespursuanttothelawsoftheUnitedStates.Theamountsubtractedpursuantto
7373 61thissubdivisionshallbereducedbyanyinterestonindebtednessincurredtocarrythe
7474 62describedobligationsorsecuritiesandbyanyexpensesincurredintheproductionofinterest
7575 63ordividendincomedescribedinthissubdivision.Thereductionintheprevioussentence
7676 64shallonlyapplytotheextentthatsuchexpensesincludingamortizablebondpremiumsare
7777 65deductedindeterminingthetaxpayer'sfederaladjustedgrossincomeorincludedinthe
7878 66taxpayer'sMissouriitemizeddeduction.Thereductionshallonlybemadeiftheexpenses
7979 67totalatleastfivehundreddollars;
8080 68 (2)Theportionofanygain,fromthesaleorotherdispositionofpropertyhavinga
8181 69higheradjustedbasistothetaxpayerforMissouriincometaxpurposesthanforfederal
8282 70incometaxpurposesonDecember31,1972,thatdoesnotexceedsuchdifferenceinbasis.If
8383 71againisconsideredalong-termcapitalgainforfederalincometaxpurposes,themodification
8484 72shallbelimitedtoone-halfofsuchportionofthegain;
8585 73 (3)Theamountnecessarytopreventthetaxationpursuanttothischapterofany
8686 74annuityorotheramountofincomeorgainwhichwasproperlyincludedinincomeorgainand
8787 75wastaxedpursuanttothelawsofMissourifora[taxable] taxyearpriortoJanuary1,1973,to
8888 76thetaxpayer,ortoadecedentbyreasonofwhosedeaththetaxpayeracquiredtherightto
8989 77receivetheincomeorgain,ortoatrustorestatefromwhichthetaxpayerreceivedtheincome
9090 78orgain;
9191 79 (4)Accumulationdistributionsreceivedbyataxpayerasabeneficiaryofatrusttothe
9292 80extentthatthesameareincludedinfederaladjustedgrossincome;
9393 81 (5)Theamountofanystateincometaxrefundforaprioryearwhichwasincludedin
9494 82thefederaladjustedgrossincome;
9595 83 (6)Theportionofcapitalgainspecifiedinsection135.357thatwouldotherwisebe
9696 84includedinfederaladjustedgrossincome;
9797 85 (7)Theamountthatwouldhavebeendeductedinthecomputationoffederaltaxable
9898 86incomepursuantto26U.S.C.Section168oftheInternalRevenueCodeasineffecton
9999 87January1,2002,totheextentthatamountrelatestopropertypurchasedonorafterJuly1,
100100 882002,butbeforeJuly1,2003,andtotheextentthatamountexceedstheamountactually
101101 89deductedpursuantto26U.S.C.Section168oftheInternalRevenueCodeasamendedbythe
102102 90JobCreationandWorkerAssistanceActof2002;
103103 HB860 3 91 (8)ForalltaxyearsbeginningonorafterJanuary1,2005,theamountofanyincome
104104 92receivedformilitaryservicewhilethetaxpayerservesinacombatzonewhichisincludedin
105105 93federaladjustedgrossincomeandnototherwiseexcludedtherefrom.Asusedinthissection,
106106 94"combatzone"meansanyareawhichthePresidentoftheUnitedStatesbyExecutiveOrder
107107 95designatesasanareainwhichArmedForcesoftheUnitedStatesareorhaveengagedin
108108 96combat.Serviceisperformedinacombatzoneonlyifperformedonorafterthedate
109109 97designatedbythePresidentbyExecutiveOrderasthedateofthecommencingofcombat
110110 98activitiesinsuchzone,andonorbeforethedatedesignatedbythePresidentbyExecutive
111111 99Orderasthedateoftheterminationofcombatantactivitiesinsuchzone;
112112 100 (9)ForalltaxyearsendingonorafterJuly1,2002,withrespecttoqualifiedproperty
113113 101thatissoldorotherwisedisposedofduringa[taxable] taxyearbyataxpayerandforwhich
114114 102anadditionalmodificationwasmadeundersubdivision(3)ofsubsection2ofthissection,the
115115 103amountbywhichadditionalmodificationmadeundersubdivision(3)ofsubsection2ofthis
116116 104sectiononqualifiedpropertyhasnotbeenrecoveredthroughtheadditionalsubtractions
117117 105providedinsubdivision(7)ofthissubsection;
118118 106 (10)ForalltaxyearsbeginningonorafterJanuary1,2014,theamountofany
119119 107incomereceivedaspaymentfromanyprogramwhichprovidescompensationtoagricultural
120120 108producerswhohavesufferedalossastheresultofadisasteroremergency,includingthe:
121121 109 (a)LivestockForageDisasterProgram;
122122 110 (b)LivestockIndemnityProgram;
123123 111 (c)EmergencyAssistanceforLivestock,Honeybees,andFarm-RaisedFish;
124124 112 (d)EmergencyConservationProgram;
125125 113 (e)NoninsuredCropDisasterAssistanceProgram;
126126 114 (f)Pasture,Rangeland,ForagePilotInsuranceProgram;
127127 115 (g)AnnualForagePilotProgram;
128128 116 (h)LivestockRiskProtectionInsurancePlan;
129129 117 (i)LivestockGrossMarginInsurancePlan;
130130 118 (11)ForalltaxyearsbeginningonorafterJanuary1,2018,anyinterestexpensepaid
131131 119oraccruedinthecurrent[taxable] taxyear,butnotdeductedasaresultofthelimitation
132132 120imposedunder26U.S.C.Section163(j),asamended.Forthepurposesofthissubdivision,an
133133 121interestexpenseisconsideredpaidoraccruedonlyinthefirst[taxable] taxyearthededuction
134134 122wouldhavebeenallowableunder26U.S.C.Section163,asamended,ifthelimitationunder
135135 12326U.S.C.Section163(j),asamended,didnotexist;
136136 124 (12)Onehundredpercentofanyretirementbenefitsreceivedbyanytaxpayerasa
137137 125resultofthetaxpayer'sserviceintheArmedForcesoftheUnitedStates,includingreserve
138138 126componentsandtheNationalGuardofthisstate,asdefinedin32U.S.C.Sections101(3)and
139139 127109,andanyothermilitaryforceorganizedunderthelawsofthisstate;[and]
140140 HB860 4 128 (13)ForalltaxyearsbeginningonorafterJanuary1,2022,onehundredpercentof
141141 129anyfederal,state,orlocalgrantmoneysreceivedbythetaxpayerifthegrantmoneywas
142142 130disbursedfortheexpresspurposeofprovidingorexpandingaccesstobroadbandinternetto
143143 131areasofthestatedeemedtobelackingsuchaccess;
144144 132 (14)ForalltaxyearsbeginningonorafterJanuary1,2026,onehundred
145145 133percentoftheamountofanyincomereceivedbyataxpayerasovertimecompensation.
146146 134Thereshallbenorequirementforemployerwithholdingundersection143.191with
147147 135respecttoanemployee'sovertimecompensationexceptasrequiredbyfederallaw;and
148148 136 (15)ForalltaxyearsbeginningonorafterJanuary1,2026,onehundred
149149 137percentoftipsreceivedorpaidtoatippedemployeeengagedinanoccupationthat
150150 138customarilyandregularlyreceivestips.Thereshallbenorequirementforemployer
151151 139withholdingundersection143.191withrespecttoanemployee'stipsexceptasrequired
152152 140byfederallaw.Forthepurposesofthissubdivision,theterm"tip"shallhavethesame
153153 141meaningassuchtermisdescribedunder29CFRSection531.52andtheterm"tipped
154154 142employee"shallhavethesamemeaningassuchtermisdefinedunder29U.S.C.Section
155155 143203(t)oftheFairLaborStandardsAct,asamended.
156156 144 4.Thereshallbeaddedtoorsubtractedfromthetaxpayer'sfederaladjustedgross
157157 145incomethetaxpayer'sshareoftheMissourifiduciaryadjustmentprovidedinsection143.351.
158158 146 5.Thereshallbeaddedtoorsubtractedfromthetaxpayer'sfederaladjustedgross
159159 147incomethemodificationsprovidedinsection143.411.
160160 148 6.Inadditiontothemodificationstoataxpayer'sfederaladjustedgrossincomeinthis
161161 149section,tocalculateMissouriadjustedgrossincomethereshallbesubtractedfromthe
162162 150taxpayer'sfederaladjustedgrossincomeanygainrecognizedpursuantto26U.S.C.Section
163163 1511033oftheInternalRevenueCodeof1986,asamended,arisingfromcompulsoryor
164164 152involuntaryconversionofpropertyasaresultofcondemnationortheimminencethereof.
165165 153 7.(1)Asusedinthissubsection,"qualifiedhealthinsurancepremium"meansthe
166166 154amountpaidduringthetaxyearbysuchtaxpayerforanyinsurancepolicyprimarily
167167 155providinghealthcarecoverageforthetaxpayer,thetaxpayer'sspouse,orthetaxpayer's
168168 156dependents.
169169 157 (2)Inadditiontothesubtractionsinsubsection3ofthissection,onehundredpercent
170170 158oftheamountofqualifiedhealthinsurancepremiumsshallbesubtractedfromthetaxpayer's
171171 159federaladjustedgrossincometotheextenttheamountpaidforsuchpremiumsisincludedin
172172 160federaltaxableincome.Thetaxpayershallprovidethedepartmentofrevenuewithproofof
173173 161theamountofqualifiedhealthinsurancepremiumspaid.
174174 162 8.(1)BeginningJanuary1,2014,inadditiontothesubtractionsprovidedinthis
175175 163section,onehundredpercentofthecostincurredbyataxpayerforahomeenergyaudit
176176 164conductedbyanentitycertifiedbythedepartmentofnaturalresourcesundersection640.153
177177 HB860 5 165ortheimplementationofanyenergyefficiencyrecommendationsmadeinsuchanauditshall
178178 166besubtractedfromthetaxpayer'sfederaladjustedgrossincometotheextenttheamountpaid
179179 167foranysuchactivityisincludedinfederaltaxableincome.Thetaxpayershallprovidethe
180180 168departmentofrevenuewithasummaryofanyrecommendationsmadeinaqualifiedhome
181181 169energyaudit,thenameandcertificationnumberofthequalifiedhomeenergyauditorwho
182182 170conductedtheaudit,andproofoftheamountpaidforanyactivitiesunderthissubsectionfor
183183 171whichadeductionisclaimed.Thetaxpayershallalsoprovideacopyofthesummaryofany
184184 172recommendationsmadeinaqualifiedhomeenergyaudittothedepartmentofnatural
185185 173resources.
186186 174 (2)Atnotimeshalladeductionclaimedunderthissubsectionbyanindividual
187187 175taxpayerortaxpayersfilingcombinedreturnsexceedonethousanddollarsperyearfor
188188 176individualtaxpayersorcumulativelyexceedtwothousanddollarsperyearfortaxpayers
189189 177filingcombinedreturns.
190190 178 (3)Anydeductionclaimedunderthissubsectionshallbeclaimedforthetaxyearin
191191 179whichthequalifiedhomeenergyauditwasconductedorinwhichtheimplementationofthe
192192 180energyefficiencyrecommendationsoccurred.Ifimplementationoftheenergyefficiency
193193 181recommendationsoccurredduringmorethanoneyear,thedeductionmaybeclaimedinmore
194194 182thanoneyear,subjecttothelimitationsprovidedundersubdivision(2)ofthissubsection.
195195 183 (4)Adeductionshallnotbeclaimedforanyotherwiseeligibleactivityunderthis
196196 184subsectionifsuchactivityqualifiedforandreceivedanyrebateorotherincentivethrougha
197197 185state-sponsoredenergyprogramorthroughanelectriccorporation,gascorporation,electric
198198 186cooperative,ormunicipallyownedutility.
199199 187 9.Theprovisionsofsubsection8ofthissectionshallexpireonDecember31,2020.
200200 188 10.(1)Asusedinthissubsection,thefollowingtermsmean:
201201 189 (a)"Beginningfarmer",ataxpayerwho:
202202 190 a.HasfiledatleastonebutnotmorethantenInternalRevenueServiceScheduleF
203203 191(Form1040)ProfitorLossFromFarmingformssinceturningeighteenyearsofage;
204204 192 b.IsapprovedforabeginningfarmerloanthroughtheUSDAFarmServiceAgency
205205 193BeginningFarmerdirectorguaranteedloanprogram;
206206 194 c.Hasafarmingoperationthatisdeterminedbythedepartmentofagriculturetobe
207207 195newproductionagriculturebutistheprincipaloperatorofafarmandhassubstantialfarming
208208 196knowledge;or
209209 197 d.Hasbeendeterminedbythedepartmentofagriculturetobeaqualifiedfamily
210210 198member;
211211 199 (b)"Farmowner",anindividualwhoownsfarmlandanddisposesoforrelinquishes
212212 200useofallorsomeportionofsuchfarmlandasfollows:
213213 201 a.Asaletoabeginningfarmer;
214214 HB860 6 202 b.Aleaseorrentalagreementnotexceedingtenyearswithabeginningfarmer;or
215215 203 c.Acrop-sharearrangementnotexceedingtenyearswithabeginningfarmer;
216216 204 (c)"Qualifiedfamilymember",anindividualwhoisrelatedtoafarmownerwithin
217217 205thefourthdegreebyblood,marriage,oradoptionandwhoispurchasingorleasingorisina
218218 206crop-sharearrangementforlandfromalloraportionofsuchfarmowner'sfarmingoperation.
219219 207 (2)(a)Inadditiontoallothersubtractionsauthorizedinthissection,ataxpayerwho
220220 208isafarmownerwhosellsalloraportionofsuchfarmlandtoabeginningfarmermaysubtract
221221 209fromsuchtaxpayer'sMissouriadjustedgrossincomeanamounttotheextentincludedin
222222 210federaladjustedgrossincomeasprovidedinthissubdivision.
223223 211 (b)Subjecttothelimitationsinparagraph(c)ofthissubdivision,theamountthatmay
224224 212besubtractedshallbeequaltotheportionofcapitalgainsreceivedfromthesaleofsuch
225225 213farmlandthatsuchtaxpayerreceivesinthetaxyearforwhichsuchtaxpayersubtractssuch
226226 214capitalgain.
227227 215 (c)Ataxpayermaysubtractthefollowingamountsandpercentagespertaxyearin
228228 216totalcapitalgainsreceivedfromthesaleofsuchfarmlandunderthissubdivision:
229229 217 a.Forthefirsttwomilliondollarsreceived,onehundredpercent;
230230 218 b.Forthenextonemilliondollarsreceived,eightypercent;
231231 219 c.Forthenextonemilliondollarsreceived,sixtypercent;
232232 220 d.Forthenextonemilliondollarsreceived,fortypercent;and
233233 221 e.Forthenextonemilliondollarsreceived,twentypercent.
234234 222 (d)Thedepartmentofrevenueshallprepareanannualreportreviewingthecostsand
235235 223benefitsandcontainingstatisticalinformationregardingthesubtractionofcapitalgains
236236 224authorizedunderthissubdivisionfortheprevioustaxyearincluding,butnotlimitedto,the
237237 225totalamountofallcapitalgainssubtractedandthenumberoftaxpayerssubtractingsuch
238238 226capitalgains.SuchreportshallbesubmittedbeforeFebruaryfirstofeachyeartothe
239239 227committeeonagriculturepolicyoftheMissourihouseofrepresentativesandthecommittee
240240 228onagriculture,foodproductionandoutdoorresourcesoftheMissourisenate,orthesuccessor
241241 229committees.
242242 230 (3)(a)Inadditiontoallothersubtractionsauthorizedinthissection,ataxpayerwho
243243 231isafarmownerwhoentersaleaseorrentalagreementforalloraportionofsuchfarmland
244244 232withabeginningfarmermaysubtractfromsuchtaxpayer'sMissouriadjustedgrossincomean
245245 233amounttotheextentincludedinfederaladjustedgrossincomeasprovidedinthis
246246 234subdivision.
247247 235 (b)Subjecttothelimitationinparagraph(c)ofthissubdivision,theamountthatmay
248248 236besubtractedshallbeequaltotheportionofcashrentincomereceivedfromtheleaseor
249249 237rentalofsuchfarmlandthatsuchtaxpayerreceivesinthetaxyearforwhichsuchtaxpayer
250250 238subtractssuchincome.
251251 HB860 7 239 (c)Notaxpayershallsubtractmorethantwenty-fivethousanddollarspertaxyearin
252252 240totalcashrentincomereceivedfromtheleaseorrentalofsuchfarmlandunderthis
253253 241subdivision.
254254 242 (4)(a)Inadditiontoallothersubtractionsauthorizedinthissection,ataxpayerwho
255255 243isafarmownerwhoentersacrop-sharearrangementonalloraportionofsuchfarmlandwith
256256 244abeginningfarmermaysubtractfromsuchtaxpayer'sMissouriadjustedgrossincomean
257257 245amounttotheextentincludedinfederaladjustedgrossincomeasprovidedinthis
258258 246subdivision.
259259 247 (b)Subjecttothelimitationinparagraph(c)ofthissubdivision,theamountthatmay
260260 248besubtractedshallbeequaltotheportionofincomereceivedfromthecrop-share
261261 249arrangementonsuchfarmlandthatsuchtaxpayerreceivesinthetaxyearforwhichsuch
262262 250taxpayersubtractssuchincome.
263263 251 (c)Notaxpayershallsubtractmorethantwenty-fivethousanddollarspertaxyearin
264264 252totalincomereceivedfromtheleaseorrentalofsuchfarmlandunderthissubdivision.
265265 253 (5)Thedepartmentofagricultureshall,byrule,establishaprocesstoverifythata
266266 254taxpayerisabeginningfarmerforpurposesofthissectionandshallprovideverificationto
267267 255thebeginningfarmerandfarmsellerofsuchfarmer'sandseller'scertificationand
268268 256qualificationfortheexemptionprovidedinthissubsection.
269269 âś”
270270 HB860 8