FIRST REGULAR SESSION
SENATE BILL NO. 190
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR BROWN (16).
1420S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 135.800, RSMo, and to enact in lieu thereof two new sections relating to tax
credits for certain engineering degrees.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 135.80 0, RSMo, is repealed and two new 1
sections enacted in lieu thereof, to be known as sections 2
135.005 and 135.800, to read as follows:3
135.005. 1. For the purposes of this section, the 1
following terms shall mean: 2
(1) "Compensation": 3
(a) Payments in the form of contract labor for which 4
the payer is required to provide a federal tax form 1099 to 5
the person paid; 6
(b) Wages that are subject to withholding tax imposed 7
under sections 143.191 to 143.265 and paid to a part -time 8
employee or full-time employee; and 9
(c) Any other salary or other remuneration. 10
"Compensation" shall not include employer -provided 11
retirement, medical or health care benefits, reimbursement 12
for travel, meals, lodging, or any other expense; 13
(2) "Department", the Missouri department of economic 14
development; 15
(3) "Qualified employer", a sole proprietorship, 16
general partnership, limited partnership, limited liability 17 SB 190 2
company, corporation, other legally recognized business 18
entity, or public entity registered to do business in this 19
state and whose principal business activity involves the 20
engineering sector; 21
(4) "Qualified institution", any public or private 22
institution of higher education that is accredited by a 23
regional accrediting body or the engineering accreditation 24
commission of the accreditation board for engineering and 25
technology (ABET); 26
(5) "Qualified program": 27
(a) A program that has been accredited by the 28
engineering accreditation commission of the accreditation 29
board for engineering and technology (ABET) or a regional 30
accrediting body and that awards an undergraduate or 31
graduate degree in engineering; or 32
(b) A program that results in the awarding of a degree 33
or certificate that prepares the graduate for gai nful 34
employment with a qualified employer; 35
(6) "Qualified worker", any person newly employed on a 36
full-time basis by or first contracting with a qualified 37
employer on a full-time basis on or after January 1, 2026, 38
who has been awarded an undergra duate or graduate degree, or 39
a technical degree or certificate from a qualified program 40
by a qualified institution; 41
(7) "State tax liability", any liability incurred by a 42
taxpayer pursuant to the provisions of chapter 143, 43
exclusive of the provis ions relating to the withholding of 44
tax as provided for in sections 143.191 to 143.265 and 45
related provisions; 46
(8) "Tax credit", a credit against the tax otherwise 47
due under chapter 143, excluding withholding tax imposed 48
under sections 143.191 to 143.265; 49 SB 190 3
(9) "Taxpayer", any individual or qualified employer, 50
as defined under this section, subject to the state income 51
tax imposed under chapter 143, excluding the withholding tax 52
imposed under sections 143.191 to 143.265; 53
(10) "Tuition", the amount paid for enrollment, 54
program specific course fees, and instruction in a qualified 55
program that includes both amounts paid during participation 56
in a qualified program or tuition debt upon completion of a 57
qualified program. "Tuition" shall not include the cost of 58
books, fees other than program specific course fees, or room 59
and board. 60
2. (1) For all tax years beginning on or after 61
January 1, 2026, a qualified employer shall be allowed a tax 62
credit against the qualified employer's s tate tax liability 63
for tuition reimbursed to a qualified worker. 64
(2) The tax credit may be claimed only if the 65
qualified worker has been awarded an undergraduate or 66
graduate degree or technical degree or certificate from a 67
qualified program withi n one year prior to or following the 68
commencement of employment with a qualified employer, and 69
may be claimed each year thereafter that the qualified 70
worker remains employed or under contract up to the fourth 71
year of such employment or contract. 72
(3) The tax credit shall be in an amount equal to 73
fifty percent of the tuition reimbursed to a qualified 74
worker during the tax year for which the tax credit is 75
claimed, except that in no event shall the tax credit exceed 76
fifty percent of the average an nual amount paid by a 77
qualified worker for enrollment and instruction in a 78
qualified program, as determined by the department. 79
(4) The tax credit shall be applied against the 80
qualified employer's state tax liability after all other tax 81 SB 190 4
credits have been applied. Tax credits authorized by this 82
subsection shall not be transferred, sold, or assigned, and 83
shall not be refundable or carried forward to any other tax 84
year. 85
3. (1) For all tax years beginning on or after 86
January 1, 2026, a qual ified employer shall be allowed a tax 87
credit against the qualified employer's state tax liability 88
for compensation paid during the tax year to a qualified 89
worker. The tax credit may be allowed for the first through 90
fifth consecutive years of employmen t or contract of the 91
qualified worker. For qualified workers who received an 92
undergraduate or graduate degree or technical degree or 93
certificate from a qualified program awarded by a qualified 94
institution, the tax credit amount shall be equal to ten 95
percent of the compensation paid. 96
(2) Tax credits authorized by this subsection shall 97
not exceed fifteen thousand dollars for any single qualified 98
worker in any given tax year and shall not exceed a total of 99
seventy-five thousand dollars for any s ingle qualified 100
worker. 101
(3) The tax credit shall be applied against the 102
qualified employer's state tax liability after all other tax 103
credits have been applied. Tax credits authorized by this 104
subsection shall not be transferred, sold, or assigned and 105
shall not be refundable or carried forward to any other tax 106
year. 107
(4) No tax credit shall be claimed for compensation 108
paid to a qualified worker after the fifth year of 109
employment of the qualified worker or the fifth year of the 110
worker's contract. 111
4. (1) For all tax years beginning on or after 112
January 1, 2026, a taxpayer who becomes a qualified worker 113 SB 190 5
during the tax year shall be allowed a tax credit against 114
the taxpayer's state tax liability in an amount equal to two 115
thousand five hundred dollars. The tax credit may be 116
claimed each year the taxpayer achieves the status of a 117
qualified worker for five consecutive tax years beginning 118
with the tax year in which the taxpayer becomes a qualified 119
worker. No taxpayer shall claim tax credits pursuant to 120
this subsection that exceed a total of twelve thousand five 121
hundred dollars. 122
(2) Tax credits authorized by this subsection shall 123
not be transferred, sold, or assigned, and shall not be 124
refundable, but may be carried forward t o subsequent tax 125
years, provided that a tax credit shall not be carried 126
forward beyond the fourth tax year succeeding the tax year 127
in which the taxpayer initially claimed the tax credit. 128
5. The tax credit authorized by this section shall be 129
considered a training and educational tax credit, as defined 130
under section 135.800, and shall be subject to the 131
provisions of section 135.800 to 135.830. 132
6. (1) The department may adopt rules and regulations 133
necessary or convenient for the implementat ion and 134
administration of this section. Any rule or portion of a 135
rule, as that term is defined in section 536.010, that is 136
created under the authority delegated in this section shall 137
become effective only if it complies with and is subject to 138
all of the provisions of chapter 536 and, if applicable, 139
section 536.028. This section and chapter 536 are 140
nonseverable and if any of the powers vested with the 141
general assembly pursuant to chapter 536 to review, to delay 142
the effective date, or to disapprove and annul a rule are 143
subsequently held unconstitutional, then the grant of 144 SB 190 6
rulemaking authority and any rule proposed or adopted after 145
August 28, 2025, shall be invalid and void. 146
(2) The department shall annually submit a written 147
report to the general assembly containing information 148
regarding the cost and effectiveness of the provisions of 149
this section. The department also may include in the report 150
any recommendations for changes to state law necessary to 151
implement the provisions of this sec tion. 152
7. Under section 23.253 of the Missouri sunset act: 153
(1) The program authorized pursuant to this section 154
shall automatically sunset on December 31, 2031, unless 155
reauthorized by an act of the general assembly; and 156
(2) If such program is reauthorized, the program 157
authorized pursuant to this section shall automatically 158
sunset twelve years after the effective date of the 159
reauthorization; and 160
(3) This section shall terminate on September first of 161
the calendar year immediately f ollowing the calendar year in 162
which the program authorized pursuant to this section is 163
sunset; and 164
(4) The provisions of this subsection shall not be 165
construed to limit or in any way impair the department's 166
ability to redeem tax credits authorize d on or before the 167
date the program authorized pursuant to this section 168
expires, or a taxpayer's ability to redeem such tax credits. 169
135.800. 1. The provisions of sections 135.800 to 1
135.830 shall be known and may be cited as the "T ax Credit 2
Accountability Act of 2004". 3
2. As used in sections 135.800 to 135.830, the 4
following terms mean: 5
(1) "Administering agency", the state agency or 6
department charged with administering a particular tax 7 SB 190 7
credit program, as set forth by the program's enacting 8
statute; where no department or agency is set forth, the 9
department of revenue; 10
(2) "Agricultural tax credits", the agricultural 11
product utilization contributor tax credit created pursuant 12
to section 348.430, the new gen eration cooperative incentive 13
tax credit created pursuant to section 348.432, the family 14
farm breeding livestock loan tax credit created under 15
section 348.505, the qualified beef tax credit created under 16
section 135.679, and the wine and grape producti on tax 17
credit created pursuant to section 135.700; 18
(3) "Business recruitment tax credits", the business 19
facility tax credit created pursuant to sections 135.110 to 20
135.150 and section 135.258, the enterprise zone tax 21
benefits created pursuant to sections 135.200 to 135.270, 22
the business use incentives for large -scale development 23
programs created pursuant to sections 100.700 to 100.850, 24
the development tax credits created pursuant to sections 25
32.100 to 32.125, the rebuilding communities tax cre dit 26
created pursuant to section 135.535, the film production tax 27
credit created pursuant to section 135.750, the enhanced 28
enterprise zone created pursuant to sections 135.950 to 29
135.970, and the Missouri quality jobs program created 30
pursuant to sections 620.1875 to 620.1900; 31
(4) "Community development tax credits", the 32
neighborhood assistance tax credit created pursuant to 33
sections 32.100 to 32.125, the family development account 34
tax credit created pursuant to sections 208.750 to 208.775, 35
the dry fire hydrant tax credit created pursuant to section 36
320.093, and the transportation development tax credit 37
created pursuant to section 135.545; 38 SB 190 8
(5) "Domestic and social tax credits", the youth 39
opportunities tax credit created pursuant to sect ion 135.460 40
and sections 620.1100 to 620.1103, the shelter for victims 41
of domestic violence or rape crisis center tax credit 42
created pursuant to section 135.550, the senior citizen or 43
disabled person property tax credit created pursuant to 44
sections 135.010 to 135.035, the adoption tax credit created 45
pursuant to sections 135.325 to 135.339, the champion for 46
children tax credit created pursuant to section 135.341, the 47
maternity home tax credit created pursuant to section 48
135.600, the surviving spouse tax credit created pursuant to 49
section 135.090, the residential treatment agency tax credit 50
created pursuant to section 135.1150, the pregnancy resource 51
center tax credit created pursuant to section 135.630, the 52
food pantry tax credit created pursuant to section 135.647, 53
the residential dwelling access tax credit created pursuant 54
to section 135.562, the developmental disability care 55
provider tax credit created under section 135.1180, the 56
shared care tax credit created pursuant to section 192.2015, 57
the health, hunger, and hygiene tax credit created pursuant 58
to section 135.1125, and the diaper bank tax credit created 59
pursuant to section 135.621; 60
(6) "Entrepreneurial tax credits", the capital tax 61
credit created pursuant to sections 135.400 to 135.429, the 62
certified capital company tax credit created pursuant to 63
sections 135.500 to 135.529, the seed capital tax credit 64
created pursuant to sections 348.300 to 348.318, the new 65
enterprise creation tax credit created pursuant to sections 66
620.635 to 620.653, the research tax credit created pursuant 67
to section 620.1039, the small business incubator tax credit 68
created pursuant to section 620.495, the guarantee fee tax 69
credit created pursuant to section 135.766, and the new 70 SB 190 9
generation cooperativ e tax credit created pursuant to 71
sections 32.105 to 32.125; 72
(7) "Environmental tax credits", the charcoal producer 73
tax credit created pursuant to section 135.313, the wood 74
energy tax credit created pursuant to sections 135.300 to 75
135.311, and the alternative fuel stations tax credit 76
created pursuant to section 135.710; 77
(8) "Financial and insurance tax credits", the bank 78
franchise tax credit created pursuant to section 148.030, 79
the bank tax credit for S corporations created pursuant to 80
section 143.471, the exam fee tax credit created pursuant to 81
section 148.400, the health insurance pool tax credit 82
created pursuant to section 376.975, the life and health 83
insurance guaranty association tax credit created pursuant 84
to section 376.745, the property and casualty guaranty 85
association tax credit created pursuant to section 375.774, 86
and the self-employed health insurance tax credit created 87
pursuant to section 143.119; 88
(9) "Housing tax credits", the neighborhood 89
preservation tax credit created pursuant to sections 135.475 90
to 135.487, the low-income housing tax credit created 91
pursuant to sections 135.350 to 135.363, and the affordable 92
housing tax credit created pursuant to sections 32.105 to 93
32.125; 94
(10) "Recipient", the indivi dual or entity who both: 95
(a) Is the original applicant for a tax credit; and 96
(b) Who directly receives a tax credit or the right to 97
transfer a tax credit under a tax credit program, regardless 98
as to whether the tax credit has been used or red eemed; a 99
recipient shall not include the transferee of a transferable 100
tax credit; 101 SB 190 10
(11) "Redevelopment tax credits", the historic 102
preservation tax credit created pursuant to sections 253.545 103
to 253.559, the brownfield redevelopment program tax cre dit 104
created pursuant to sections 447.700 to 447.718, the 105
community development corporations tax credit created 106
pursuant to sections 135.400 to 135.430, the infrastructure 107
tax credit created pursuant to subsection 6 of section 108
100.286, the bond guarant ee tax credit created pursuant to 109
section 100.297, the disabled access tax credit created 110
pursuant to section 135.490, the new markets tax credit 111
created pursuant to section 135.680, and the distressed 112
areas land assemblage tax credit created pursuant to section 113
99.1205; 114
(12) "Tax credit program", any of the tax credit 115
programs included in the definitions of agricultural tax 116
credits, business recruitment tax credits, community 117
development tax credits, domestic and social tax credits, 118
entrepreneurial tax credits, environmental tax credits, 119
housing tax credits, redevelopment tax credits, and training 120
and educational tax credits; 121
(13) "Training and educational tax credits", the 122
Missouri works new jobs tax credit and Missouri works 123
retained jobs credit created pursuant to sections 620.800 to 124
620.809 and the engineering workforce development tax credit 125
created under section 135.005 . 126