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Missouri Senate Bill SB190

Missouri 2025 Regular Session

Missouri Senate Bill SB190 Compare Versions

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22 FIRST REGULAR SESSION
33 SENATE BILL NO. 190
44 103RD GENERAL ASSEMBLY
55 INTRODUCED BY SENATOR BROWN (16).
66 1420S.01I KRISTINA MARTIN, Secretary
77 AN ACT
88 To repeal section 135.800, RSMo, and to enact in lieu thereof two new sections relating to tax
99 credits for certain engineering degrees.
1010
1111 Be it enacted by the General Assembly of the State of Missouri, as follows:
1212 Section A. Section 135.80 0, RSMo, is repealed and two new 1
1313 sections enacted in lieu thereof, to be known as sections 2
1414 135.005 and 135.800, to read as follows:3
1515 135.005. 1. For the purposes of this section, the 1
1616 following terms shall mean: 2
1717 (1) "Compensation": 3
1818 (a) Payments in the form of contract labor for which 4
1919 the payer is required to provide a federal tax form 1099 to 5
2020 the person paid; 6
2121 (b) Wages that are subject to withholding tax imposed 7
2222 under sections 143.191 to 143.265 and paid to a part -time 8
2323 employee or full-time employee; and 9
2424 (c) Any other salary or other remuneration. 10
2525 "Compensation" shall not include employer -provided 11
2626 retirement, medical or health care benefits, reimbursement 12
2727 for travel, meals, lodging, or any other expense; 13
2828 (2) "Department", the Missouri department of economic 14
2929 development; 15
3030 (3) "Qualified employer", a sole proprietorship, 16
3131 general partnership, limited partnership, limited liability 17 SB 190 2
3232 company, corporation, other legally recognized business 18
3333 entity, or public entity registered to do business in this 19
3434 state and whose principal business activity involves the 20
3535 engineering sector; 21
3636 (4) "Qualified institution", any public or private 22
3737 institution of higher education that is accredited by a 23
3838 regional accrediting body or the engineering accreditation 24
3939 commission of the accreditation board for engineering and 25
4040 technology (ABET); 26
4141 (5) "Qualified program": 27
4242 (a) A program that has been accredited by the 28
4343 engineering accreditation commission of the accreditation 29
4444 board for engineering and technology (ABET) or a regional 30
4545 accrediting body and that awards an undergraduate or 31
4646 graduate degree in engineering; or 32
4747 (b) A program that results in the awarding of a degree 33
4848 or certificate that prepares the graduate for gai nful 34
4949 employment with a qualified employer; 35
5050 (6) "Qualified worker", any person newly employed on a 36
5151 full-time basis by or first contracting with a qualified 37
5252 employer on a full-time basis on or after January 1, 2026, 38
5353 who has been awarded an undergra duate or graduate degree, or 39
5454 a technical degree or certificate from a qualified program 40
5555 by a qualified institution; 41
5656 (7) "State tax liability", any liability incurred by a 42
5757 taxpayer pursuant to the provisions of chapter 143, 43
5858 exclusive of the provis ions relating to the withholding of 44
5959 tax as provided for in sections 143.191 to 143.265 and 45
6060 related provisions; 46
6161 (8) "Tax credit", a credit against the tax otherwise 47
6262 due under chapter 143, excluding withholding tax imposed 48
6363 under sections 143.191 to 143.265; 49 SB 190 3
6464 (9) "Taxpayer", any individual or qualified employer, 50
6565 as defined under this section, subject to the state income 51
6666 tax imposed under chapter 143, excluding the withholding tax 52
6767 imposed under sections 143.191 to 143.265; 53
6868 (10) "Tuition", the amount paid for enrollment, 54
6969 program specific course fees, and instruction in a qualified 55
7070 program that includes both amounts paid during participation 56
7171 in a qualified program or tuition debt upon completion of a 57
7272 qualified program. "Tuition" shall not include the cost of 58
7373 books, fees other than program specific course fees, or room 59
7474 and board. 60
7575 2. (1) For all tax years beginning on or after 61
7676 January 1, 2026, a qualified employer shall be allowed a tax 62
7777 credit against the qualified employer's s tate tax liability 63
7878 for tuition reimbursed to a qualified worker. 64
7979 (2) The tax credit may be claimed only if the 65
8080 qualified worker has been awarded an undergraduate or 66
8181 graduate degree or technical degree or certificate from a 67
8282 qualified program withi n one year prior to or following the 68
8383 commencement of employment with a qualified employer, and 69
8484 may be claimed each year thereafter that the qualified 70
8585 worker remains employed or under contract up to the fourth 71
8686 year of such employment or contract. 72
8787 (3) The tax credit shall be in an amount equal to 73
8888 fifty percent of the tuition reimbursed to a qualified 74
8989 worker during the tax year for which the tax credit is 75
9090 claimed, except that in no event shall the tax credit exceed 76
9191 fifty percent of the average an nual amount paid by a 77
9292 qualified worker for enrollment and instruction in a 78
9393 qualified program, as determined by the department. 79
9494 (4) The tax credit shall be applied against the 80
9595 qualified employer's state tax liability after all other tax 81 SB 190 4
9696 credits have been applied. Tax credits authorized by this 82
9797 subsection shall not be transferred, sold, or assigned, and 83
9898 shall not be refundable or carried forward to any other tax 84
9999 year. 85
100100 3. (1) For all tax years beginning on or after 86
101101 January 1, 2026, a qual ified employer shall be allowed a tax 87
102102 credit against the qualified employer's state tax liability 88
103103 for compensation paid during the tax year to a qualified 89
104104 worker. The tax credit may be allowed for the first through 90
105105 fifth consecutive years of employmen t or contract of the 91
106106 qualified worker. For qualified workers who received an 92
107107 undergraduate or graduate degree or technical degree or 93
108108 certificate from a qualified program awarded by a qualified 94
109109 institution, the tax credit amount shall be equal to ten 95
110110 percent of the compensation paid. 96
111111 (2) Tax credits authorized by this subsection shall 97
112112 not exceed fifteen thousand dollars for any single qualified 98
113113 worker in any given tax year and shall not exceed a total of 99
114114 seventy-five thousand dollars for any s ingle qualified 100
115115 worker. 101
116116 (3) The tax credit shall be applied against the 102
117117 qualified employer's state tax liability after all other tax 103
118118 credits have been applied. Tax credits authorized by this 104
119119 subsection shall not be transferred, sold, or assigned and 105
120120 shall not be refundable or carried forward to any other tax 106
121121 year. 107
122122 (4) No tax credit shall be claimed for compensation 108
123123 paid to a qualified worker after the fifth year of 109
124124 employment of the qualified worker or the fifth year of the 110
125125 worker's contract. 111
126126 4. (1) For all tax years beginning on or after 112
127127 January 1, 2026, a taxpayer who becomes a qualified worker 113 SB 190 5
128128 during the tax year shall be allowed a tax credit against 114
129129 the taxpayer's state tax liability in an amount equal to two 115
130130 thousand five hundred dollars. The tax credit may be 116
131131 claimed each year the taxpayer achieves the status of a 117
132132 qualified worker for five consecutive tax years beginning 118
133133 with the tax year in which the taxpayer becomes a qualified 119
134134 worker. No taxpayer shall claim tax credits pursuant to 120
135135 this subsection that exceed a total of twelve thousand five 121
136136 hundred dollars. 122
137137 (2) Tax credits authorized by this subsection shall 123
138138 not be transferred, sold, or assigned, and shall not be 124
139139 refundable, but may be carried forward t o subsequent tax 125
140140 years, provided that a tax credit shall not be carried 126
141141 forward beyond the fourth tax year succeeding the tax year 127
142142 in which the taxpayer initially claimed the tax credit. 128
143143 5. The tax credit authorized by this section shall be 129
144144 considered a training and educational tax credit, as defined 130
145145 under section 135.800, and shall be subject to the 131
146146 provisions of section 135.800 to 135.830. 132
147147 6. (1) The department may adopt rules and regulations 133
148148 necessary or convenient for the implementat ion and 134
149149 administration of this section. Any rule or portion of a 135
150150 rule, as that term is defined in section 536.010, that is 136
151151 created under the authority delegated in this section shall 137
152152 become effective only if it complies with and is subject to 138
153153 all of the provisions of chapter 536 and, if applicable, 139
154154 section 536.028. This section and chapter 536 are 140
155155 nonseverable and if any of the powers vested with the 141
156156 general assembly pursuant to chapter 536 to review, to delay 142
157157 the effective date, or to disapprove and annul a rule are 143
158158 subsequently held unconstitutional, then the grant of 144 SB 190 6
159159 rulemaking authority and any rule proposed or adopted after 145
160160 August 28, 2025, shall be invalid and void. 146
161161 (2) The department shall annually submit a written 147
162162 report to the general assembly containing information 148
163163 regarding the cost and effectiveness of the provisions of 149
164164 this section. The department also may include in the report 150
165165 any recommendations for changes to state law necessary to 151
166166 implement the provisions of this sec tion. 152
167167 7. Under section 23.253 of the Missouri sunset act: 153
168168 (1) The program authorized pursuant to this section 154
169169 shall automatically sunset on December 31, 2031, unless 155
170170 reauthorized by an act of the general assembly; and 156
171171 (2) If such program is reauthorized, the program 157
172172 authorized pursuant to this section shall automatically 158
173173 sunset twelve years after the effective date of the 159
174174 reauthorization; and 160
175175 (3) This section shall terminate on September first of 161
176176 the calendar year immediately f ollowing the calendar year in 162
177177 which the program authorized pursuant to this section is 163
178178 sunset; and 164
179179 (4) The provisions of this subsection shall not be 165
180180 construed to limit or in any way impair the department's 166
181181 ability to redeem tax credits authorize d on or before the 167
182182 date the program authorized pursuant to this section 168
183183 expires, or a taxpayer's ability to redeem such tax credits. 169
184184 135.800. 1. The provisions of sections 135.800 to 1
185185 135.830 shall be known and may be cited as the "T ax Credit 2
186186 Accountability Act of 2004". 3
187187 2. As used in sections 135.800 to 135.830, the 4
188188 following terms mean: 5
189189 (1) "Administering agency", the state agency or 6
190190 department charged with administering a particular tax 7 SB 190 7
191191 credit program, as set forth by the program's enacting 8
192192 statute; where no department or agency is set forth, the 9
193193 department of revenue; 10
194194 (2) "Agricultural tax credits", the agricultural 11
195195 product utilization contributor tax credit created pursuant 12
196196 to section 348.430, the new gen eration cooperative incentive 13
197197 tax credit created pursuant to section 348.432, the family 14
198198 farm breeding livestock loan tax credit created under 15
199199 section 348.505, the qualified beef tax credit created under 16
200200 section 135.679, and the wine and grape producti on tax 17
201201 credit created pursuant to section 135.700; 18
202202 (3) "Business recruitment tax credits", the business 19
203203 facility tax credit created pursuant to sections 135.110 to 20
204204 135.150 and section 135.258, the enterprise zone tax 21
205205 benefits created pursuant to sections 135.200 to 135.270, 22
206206 the business use incentives for large -scale development 23
207207 programs created pursuant to sections 100.700 to 100.850, 24
208208 the development tax credits created pursuant to sections 25
209209 32.100 to 32.125, the rebuilding communities tax cre dit 26
210210 created pursuant to section 135.535, the film production tax 27
211211 credit created pursuant to section 135.750, the enhanced 28
212212 enterprise zone created pursuant to sections 135.950 to 29
213213 135.970, and the Missouri quality jobs program created 30
214214 pursuant to sections 620.1875 to 620.1900; 31
215215 (4) "Community development tax credits", the 32
216216 neighborhood assistance tax credit created pursuant to 33
217217 sections 32.100 to 32.125, the family development account 34
218218 tax credit created pursuant to sections 208.750 to 208.775, 35
219219 the dry fire hydrant tax credit created pursuant to section 36
220220 320.093, and the transportation development tax credit 37
221221 created pursuant to section 135.545; 38 SB 190 8
222222 (5) "Domestic and social tax credits", the youth 39
223223 opportunities tax credit created pursuant to sect ion 135.460 40
224224 and sections 620.1100 to 620.1103, the shelter for victims 41
225225 of domestic violence or rape crisis center tax credit 42
226226 created pursuant to section 135.550, the senior citizen or 43
227227 disabled person property tax credit created pursuant to 44
228228 sections 135.010 to 135.035, the adoption tax credit created 45
229229 pursuant to sections 135.325 to 135.339, the champion for 46
230230 children tax credit created pursuant to section 135.341, the 47
231231 maternity home tax credit created pursuant to section 48
232232 135.600, the surviving spouse tax credit created pursuant to 49
233233 section 135.090, the residential treatment agency tax credit 50
234234 created pursuant to section 135.1150, the pregnancy resource 51
235235 center tax credit created pursuant to section 135.630, the 52
236236 food pantry tax credit created pursuant to section 135.647, 53
237237 the residential dwelling access tax credit created pursuant 54
238238 to section 135.562, the developmental disability care 55
239239 provider tax credit created under section 135.1180, the 56
240240 shared care tax credit created pursuant to section 192.2015, 57
241241 the health, hunger, and hygiene tax credit created pursuant 58
242242 to section 135.1125, and the diaper bank tax credit created 59
243243 pursuant to section 135.621; 60
244244 (6) "Entrepreneurial tax credits", the capital tax 61
245245 credit created pursuant to sections 135.400 to 135.429, the 62
246246 certified capital company tax credit created pursuant to 63
247247 sections 135.500 to 135.529, the seed capital tax credit 64
248248 created pursuant to sections 348.300 to 348.318, the new 65
249249 enterprise creation tax credit created pursuant to sections 66
250250 620.635 to 620.653, the research tax credit created pursuant 67
251251 to section 620.1039, the small business incubator tax credit 68
252252 created pursuant to section 620.495, the guarantee fee tax 69
253253 credit created pursuant to section 135.766, and the new 70 SB 190 9
254254 generation cooperativ e tax credit created pursuant to 71
255255 sections 32.105 to 32.125; 72
256256 (7) "Environmental tax credits", the charcoal producer 73
257257 tax credit created pursuant to section 135.313, the wood 74
258258 energy tax credit created pursuant to sections 135.300 to 75
259259 135.311, and the alternative fuel stations tax credit 76
260260 created pursuant to section 135.710; 77
261261 (8) "Financial and insurance tax credits", the bank 78
262262 franchise tax credit created pursuant to section 148.030, 79
263263 the bank tax credit for S corporations created pursuant to 80
264264 section 143.471, the exam fee tax credit created pursuant to 81
265265 section 148.400, the health insurance pool tax credit 82
266266 created pursuant to section 376.975, the life and health 83
267267 insurance guaranty association tax credit created pursuant 84
268268 to section 376.745, the property and casualty guaranty 85
269269 association tax credit created pursuant to section 375.774, 86
270270 and the self-employed health insurance tax credit created 87
271271 pursuant to section 143.119; 88
272272 (9) "Housing tax credits", the neighborhood 89
273273 preservation tax credit created pursuant to sections 135.475 90
274274 to 135.487, the low-income housing tax credit created 91
275275 pursuant to sections 135.350 to 135.363, and the affordable 92
276276 housing tax credit created pursuant to sections 32.105 to 93
277277 32.125; 94
278278 (10) "Recipient", the indivi dual or entity who both: 95
279279 (a) Is the original applicant for a tax credit; and 96
280280 (b) Who directly receives a tax credit or the right to 97
281281 transfer a tax credit under a tax credit program, regardless 98
282282 as to whether the tax credit has been used or red eemed; a 99
283283 recipient shall not include the transferee of a transferable 100
284284 tax credit; 101 SB 190 10
285285 (11) "Redevelopment tax credits", the historic 102
286286 preservation tax credit created pursuant to sections 253.545 103
287287 to 253.559, the brownfield redevelopment program tax cre dit 104
288288 created pursuant to sections 447.700 to 447.718, the 105
289289 community development corporations tax credit created 106
290290 pursuant to sections 135.400 to 135.430, the infrastructure 107
291291 tax credit created pursuant to subsection 6 of section 108
292292 100.286, the bond guarant ee tax credit created pursuant to 109
293293 section 100.297, the disabled access tax credit created 110
294294 pursuant to section 135.490, the new markets tax credit 111
295295 created pursuant to section 135.680, and the distressed 112
296296 areas land assemblage tax credit created pursuant to section 113
297297 99.1205; 114
298298 (12) "Tax credit program", any of the tax credit 115
299299 programs included in the definitions of agricultural tax 116
300300 credits, business recruitment tax credits, community 117
301301 development tax credits, domestic and social tax credits, 118
302302 entrepreneurial tax credits, environmental tax credits, 119
303303 housing tax credits, redevelopment tax credits, and training 120
304304 and educational tax credits; 121
305305 (13) "Training and educational tax credits", the 122
306306 Missouri works new jobs tax credit and Missouri works 123
307307 retained jobs credit created pursuant to sections 620.800 to 124
308308 620.809 and the engineering workforce development tax credit 125
309309 created under section 135.005 . 126
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