Missouri 2025 Regular Session

Missouri Senate Bill SB195 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	1417S.04C
2		-	1
3		-	SENATE COMMITTEE SUBSTITUTE
4		-	FOR
5		-	SENATE BILLS NOS. 195 & 53
	1	+
	2	+	FIRST REGULAR SESSION
	3	+	SENATE BILL NO. 195
	4	+	103RD GENERAL ASSEMBLY
	5	+	INTRODUCED BY SENATOR BRATTIN.
	6	+	1417S.01I KRISTINA MARTIN, Secretary
6	7		AN ACT
7		-	To amend chapter 135, RSMo, by adding thereto one new
8		-	section relating to a tax credit for certain
	8	+	To amend chapter 135, RSMo, by adding thereto one new section relating to a tax credit for certain
9	9		educational expenses.
10	10
11	11		Be it enacted by the General Assembly of the State of Missouri, as follows:
12		-	Section A. Chapter 135, RSMo, is amended by adding thereto
13		-	one new section, to be known as section 135.721, to read as
14		-	follows:
15		-	135.721. 1. This section shall be known and may be
16		-	cited as the "Missouri Parental Choice Tax Credit Act".
17		-	2. For the purposes of this section, the following
18		-	terms shall mean:
19		-	(1) "Department", the Missouri department of revenue;
20		-	(2) "Nonpublic school", any school that is not a part
21		-	of the public school system of the state of Missouri and
22		-	that renders elementary or secondary educational services,
23		-	regardless of whether such school charges tuition;
24		-	(3) "Qualified expenses":
25		-	(a) Tuition or fees at a nonpublic school;
26		-	(b) Textbooks required by a nonpublic school;
27		-	(c) Educational therapies or services from a licensed
28		-	or accredited practitioner or provider including, but not
29		-	limited to, licensed or accredited paraprofessionals or
30		-	educational aides;
31		-	(d) Tutoring services;
32		-	(e) Curriculum;
33		-	(f) Tuition or fees for a private virtual school;
34		-	2
35		-	(g) Fees for a nationally standardized norm -referenced
36		-	achievement test, advanced placement examinations, or any
37		-	examinations related to college or university admission;
38		-	(h) Fees for services provided by a public s chool
39		-	including, but not limited to, individual classes and
40		-	extracurricular programs;
41		-	(i) Computer hardware or other technological devices
42		-	that are used to help meet the qualified student's
43		-	educational needs;
44		-	(j) Fees for summer education p rograms and specialized
45		-	after-school education programs; and
46		-	(k) Transportation costs for mileage to and from a
47		-	nonpublic school;
48		-	"Qualified expenses" shall not include consumable
49		-	educational supplies including, but not limited to, paper,
50		-	pens, pencils, or markers; tuition at a private school
51		-	located outside of the state of Missouri; or payments or
52		-	reimbursements to any person related within the third degree
53		-	of consanguinity or affinity to a qualified student;
54		-	(4) "Qualified student", a c hild who is not enrolled
55		-	in a public school and who is required to be educated
56		-	pursuant to section 167.031;
57		-	(5) "Resident school district", the school district in
58		-	which a taxpayer's residence is located;
59		-	(6) "Tax credit", a credit against th e tax otherwise
60		-	due under chapter 143, excluding withholding tax imposed
61		-	under sections 143.191 to 143.265;
62		-	(7) "Taxpayer", any individual subject to the state
63		-	income tax imposed under chapter 143, excluding the
64		-	withholding tax imposed under sect ions 143.191 to 143.265,
65		-	and who:
66		-	3
67		-	(a) Enrolled a qualified student in a nonpublic school
68		-	during the tax year for which the taxpayer is claiming a tax
69		-	credit pursuant to this section; and
70		-	(b) Did not enroll a qualified student in the resident
71		-	school district during the tax year for which the taxpayer
72		-	is claiming a tax credit pursuant to this section.
73		-	3. (1) For all tax years beginning on or after
74		-	January 1, 2026, a taxpayer shall be authorized to claim a
75		-	tax credit against the taxpa yer's state tax liability in an
76		-	amount equal to one hundred percent of qualified expenses
77		-	incurred for educating a qualified student at a nonpublic
78		-	school, provided that no tax credit authorized pursuant to
79		-	this section shall exceed the state adequacy target, as
80		-	defined in section 163.011.
81		-	(2) Tax credits authorized pursuant to this section
82		-	shall not be transferred, sold, or assigned.
83		-	(3) Any amount of tax credit that exceeds the
84		-	taxpayer's state tax liability shall be considered an
85		-	overpayment of taxes and shall be refunded.
86		-	(4) Notwithstanding any provision of law to the
87		-	contrary, no tax credit shall be issued pursuant to this
88		-	section for any qualified expenses that were paid for using
89		-	a Missouri empowerment scholarship account created pursuant
90		-	to sections 166.700 to 166.720.
91		-	4. Tax credits authorized pursuant to this section
92		-	shall be claimed by the taxpayer at the time such taxpayer
93		-	files a return.
94		-	5. The department shall promulgate rules to implement
95		-	the provisions of this section. Any rule or portion of a
96		-	rule, as that term is defined in section 536.010, that is
97		-	created under the authority delegated in this section shall
98		-	become effective only if it complies with and is subject to
99		-	all of the provisions of c hapter 536 and, if applicable,
100		-	4
101		-	section 536.028. This section and chapter 536 are
102		-	nonseverable and if any of the powers vested with the
103		-	general assembly pursuant to chapter 536 to review, to delay
104		-	the effective date, or to disapprove and annul a rule a re
105		-	subsequently held unconstitutional, then the grant of
106		-	rulemaking authority and any rule proposed or adopted after
107		-	August 28, 2025, shall be invalid and void.
108		-	6. Pursuant to section 23.253 of the Missouri sunset
109		-	act:
110		-	(1) The program authorized pursuant to this section
111		-	shall automatically sunset six years after the effective
112		-	date of this section unless reauthorized by an act of the
113		-	general assembly; and
114		-	(2) If such program is reauthorized, the program
115		-	authorized pursuant to this s ection shall automatically
116		-	sunset twelve years after the effective date of the
117		-	reauthorization; and
118		-	(3) This section shall terminate on September first of
119		-	the calendar year immediately following the calendar year in
120		-	which the program authorized p ursuant to this section is
121		-	sunset; and
122		-	(4) The provisions of this subsection shall not be
123		-	construed to limit or in any way impair the department's
124		-	ability to redeem tax credits authorized on or before the
125		-	date the program authorized pursuant to t his section
126		-	expires, or a taxpayer's ability to redeem such tax credits.
	12	+	Section A. Chapter 135, RSMo, is amended by adding thereto 1
	13	+	one new section, to be known as section 135.721, to read as 2
	14	+	follows:3
	15	+	135.721. 1. This section shall be known and may be 1
	16	+	cited as the "Missouri Parental Choice Tax Credit Act". 2
	17	+	2. For the purposes of this section, the follo wing 3
	18	+	terms shall mean: 4
	19	+	(1) "Department", the Missouri department of revenue; 5
	20	+	(2) "Home school", the same meaning as provided in 6
	21	+	section 167.012, or an FPE school, as defined in section 7
	22	+	167.031; 8
	23	+	(3) "Private school", a school that is no t a part of 9
	24	+	the public school system of the state of Missouri and that 10
	25	+	charges tuition for the rendering of elementary or secondary 11
	26	+	educational services; 12
	27	+	(4) "Qualified expenses": 13
	28	+	(a) Tuition or fees at a private school or home school; 14
	29	+	(b) Textbooks required by a private school or home 15
	30	+	school; 16
	31	+	(c) Educational therapies or services from a licensed 17
	32	+	or accredited practitioner or provider including, but not 18 SB 195 2
	33	+	limited to, licensed or accredited paraprofessionals or 19
	34	+	educational aides; 20
	35	+	(d) Tutoring services; 21
	36	+	(e) Curriculum; 22
	37	+	(f) Tuition or fees for a private virtual school; 23
	38	+	(g) Fees for a nationally standardized norm -referenced 24
	39	+	achievement test, advanced placement examinations, or any 25
	40	+	examinations related to col lege or university admission; 26
	41	+	(h) Services provided by a public school including, 27
	42	+	but not limited to, individual classes and extracurricular 28
	43	+	programs; 29
	44	+	(i) Computer hardware or other technological devices 30
	45	+	that are used to help meet the qualif ied student's 31
	46	+	educational needs; 32
	47	+	(j) Fees for summer education programs and specialized 33
	48	+	after-school education programs; and 34
	49	+	(k) Transportation costs for mileage to and from a 35
	50	+	private school or home school; 36
	51	+	"Qualified expenses" shall not inc lude consumable 37
	52	+	educational supplies including, but not limited to, paper, 38
	53	+	pens, pencils, or markers; tuition at a private school 39
	54	+	located outside of the state of Missouri; or payments or 40
	55	+	reimbursements to any person related within the third degree 41
	56	+	of consanguinity or affinity to a qualified student; 42
	57	+	(5) "Qualified student", a child who is required to be 43
	58	+	educated pursuant to section 167.031; 44
	59	+	(6) "Resident school district", the school district in 45
	60	+	which a taxpayer's residence is located; 46
	61	+	(7) "Tax credit", a credit against the tax otherwise 47
	62	+	due under chapter 143, excluding withholding tax imposed 48
	63	+	under sections 143.191 to 143.265; 49 SB 195 3
	64	+	(8) "Taxpayer", any individual subject to the state 50
	65	+	income tax imposed under chapter 143, excluding the 51
	66	+	withholding tax imposed under sections 143.191 to 143.265, 52
	67	+	and who: 53
	68	+	(a) Enrolled a qualified student in a private school 54
	69	+	or home school during the tax year for which the taxpayer is 55
	70	+	claiming a tax credit pursuant to this section; and 56
	71	+	(b) Did not enroll a qualified student in the resident 57
	72	+	school district during the tax year for which the taxpayer 58
	73	+	is claiming a tax credit pursuant to this section. 59
	74	+	3. (1) For all tax years beginning on or after 60
	75	+	January 1, 2026, a taxpayer shall b e authorized to claim a 61
	76	+	tax credit against the taxpayer's state tax liability in an 62
	77	+	amount equal to one hundred percent of qualified expenses 63
	78	+	incurred for educating a qualified student at a private 64
	79	+	school or home school, provided that no tax credit 65
	80	+	authorized pursuant to this section shall exceed the state 66
	81	+	adequacy target, as defined in section 163.011. 67
	82	+	(2) Tax credits authorized pursuant to this section 68
	83	+	shall not be transferred, sold, or assigned. 69
	84	+	(3) Any amount of tax credit that exceed s the 70
	85	+	taxpayer's state tax liability shall be considered an 71
	86	+	overpayment of taxes and shall be refunded. 72
	87	+	4. Tax credits authorized pursuant to this section 73
	88	+	shall be claimed by the taxpayer at the time such taxpayer 74
	89	+	files a return. 75
	90	+	5. The department shall promulgate rules to implement 76
	91	+	the provisions of this section. Any rule or portion of a 77
	92	+	rule, as that term is defined in section 536.010, that is 78
	93	+	created under the authority delegated in this section shall 79
	94	+	become effective only if it comp lies with and is subject to 80
	95	+	all of the provisions of chapter 536 and, if applicable, 81 SB 195 4
	96	+	section 536.028. This section and chapter 536 are 82
	97	+	nonseverable and if any of the powers vested with the 83
	98	+	general assembly pursuant to chapter 536 to review, to delay 84
	99	+	the effective date, or to disapprove and annul a rule are 85
	100	+	subsequently held unconstitutional, then the grant of 86
	101	+	rulemaking authority and any rule proposed or adopted after 87
	102	+	August 28, 2025, shall be invalid and void. 88
	103	+	6. Pursuant to section 23.253 o f the Missouri sunset 89
	104	+	act: 90
	105	+	(1) The program authorized pursuant to this section 91
	106	+	shall automatically sunset six years after the effective 92
	107	+	date of this section unless reauthorized by an act of the 93
	108	+	general assembly; and 94
	109	+	(2) If such program is r eauthorized, the program 95
	110	+	authorized pursuant to this section shall automatically 96
	111	+	sunset twelve years after the effective date of the 97
	112	+	reauthorization; and 98
	113	+	(3) This section shall terminate on September first of 99
	114	+	the calendar year immediately followi ng the calendar year in 100
	115	+	which the program authorized pursuant to this section is 101
	116	+	sunset; and 102
	117	+	(4) The provisions of this subsection shall not be 103
	118	+	construed to limit or in any way impair the department's 104
	119	+	ability to redeem tax credits authorized on o r before the 105
	120	+	date the program authorized pursuant to this section 106
	121	+	expires, or a taxpayer's ability to redeem such tax credits. 107
	122	+	