| 1 | 1 | | |
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| 2 | 2 | | FIRST REGULAR SESSION |
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| 3 | 3 | | SENATE BILL NO. 646 |
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| 4 | 4 | | 103RD GENERAL ASSEMBLY |
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| 5 | 5 | | INTRODUCED BY SENATOR CARTER. |
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| 6 | 6 | | 1221S.01I KRISTINA MARTIN, Secretary |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | To amend chapter 135, RSMo, by adding thereto one new section relating to a tax credit for certain |
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| 9 | 9 | | dependents. |
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| 10 | 10 | | |
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| 11 | 11 | | Be it enacted by the General Assembly of the State of Missouri, as follows: |
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| 12 | 12 | | Section A. Chapter 135, RSMo, is amended by adding ther eto 1 |
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| 13 | 13 | | one new section, to be known as section 135.045, to read as 2 |
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| 14 | 14 | | follows:3 |
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| 15 | 15 | | 135.045. 1. For the purposes of this section, the 1 |
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| 16 | 16 | | following terms shall mean: 2 |
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| 17 | 17 | | (1) "Department", the Missouri department of revenue; 3 |
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| 18 | 18 | | (2) "Dependent", a child for w hom a taxpayer is 4 |
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| 19 | 19 | | entitled to a dependency exemption deduction for federal 5 |
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| 20 | 20 | | income tax purposes, regardless of whether the exemption 6 |
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| 21 | 21 | | amount as defined under 26 U.S.C. Section 151 is zero; 7 |
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| 22 | 22 | | (3) "State tax liability", any liability incurred by a 8 |
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| 23 | 23 | | taxpayer pursuant to the provisions of chapter 143 or 9 |
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| 24 | 24 | | chapter 148, exclusive of the provisions relating to the 10 |
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| 25 | 25 | | withholding of tax as provided for in sections 143.191 to 11 |
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| 26 | 26 | | 143.265 and related provisions; 12 |
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| 27 | 27 | | (4) "Tax credit", a credit against the tax otherwi se 13 |
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| 28 | 28 | | due under chapter 143, excluding withholding tax imposed 14 |
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| 29 | 29 | | under sections 143.191 to 143.265; 15 |
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| 30 | 30 | | (5) "Taxpayer", a person who is the biological parent 16 |
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| 31 | 31 | | of a dependent and who is subject to the tax imposed under 17 |
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| 32 | 32 | | chapter 143. 18 SB 646 2 |
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| 33 | 33 | | 2. For all tax years beginning on or after January 1, 19 |
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| 34 | 34 | | 2026, a taxpayer shall be allowed to claim a tax credit in 20 |
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| 35 | 35 | | an amount equal to one thousand dollars per dependent, 21 |
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| 36 | 36 | | provided that the taxpayer is married to the other 22 |
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| 37 | 37 | | biological parent of such dependent. For taxpayers who were 23 |
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| 38 | 38 | | married prior to conceiving such dependent, the amount of 24 |
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| 39 | 39 | | the tax credit shall be equal to one thousand five hundred 25 |
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| 40 | 40 | | dollars per dependent. 26 |
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| 41 | 41 | | 3. (1) Any amount of tax credits authorized pursuant 27 |
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| 42 | 42 | | to this section that exceeds a taxpayer's s tate tax 28 |
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| 43 | 43 | | liability shall be considered an overpayment of taxes and 29 |
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| 44 | 44 | | shall be refunded to the taxpayer. 30 |
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| 45 | 45 | | (2) Tax credits authorized pursuant to this section 31 |
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| 46 | 46 | | shall not be transferred, sold, or assigned, and shall not 32 |
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| 47 | 47 | | be carried forward or backward to any other tax year. 33 |
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| 48 | 48 | | 4. The department shall promulgate rules to implement 34 |
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| 49 | 49 | | the provisions of this section. Any rule or portion of a 35 |
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| 50 | 50 | | rule, as that term is defined in section 536.010, that is 36 |
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| 51 | 51 | | created under the authority delegated in this section sh all 37 |
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| 52 | 52 | | become effective only if it complies with and is subject to 38 |
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| 53 | 53 | | all of the provisions of chapter 536 and, if applicable, 39 |
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| 54 | 54 | | section 536.028. This section and chapter 536 are 40 |
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| 55 | 55 | | nonseverable and if any of the powers vested with the 41 |
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| 56 | 56 | | general assembly pursuant to chapter 536 to review, to delay 42 |
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| 57 | 57 | | the effective date, or to disapprove and annul a rule are 43 |
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| 58 | 58 | | subsequently held unconstitutional, then the grant of 44 |
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| 59 | 59 | | rulemaking authority and any rule proposed or adopted after 45 |
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| 60 | 60 | | August 28, 2025, shall be invalid and void. 46 |
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| 61 | 61 | | 5. Pursuant to section 23.253 of the Missouri Sunset 47 |
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| 62 | 62 | | Act: 48 SB 646 3 |
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| 63 | 63 | | (1) The program authorized pursuant to this section 49 |
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| 64 | 64 | | shall automatically sunset on December 31, 2031, unless 50 |
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| 65 | 65 | | reauthorized by an act of the general assembly; and 51 |
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| 66 | 66 | | (2) If such program is reauthorized, the program 52 |
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| 67 | 67 | | authorized pursuant to this section shall automatically 53 |
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| 68 | 68 | | sunset twelve years after the effective date of the 54 |
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| 69 | 69 | | reauthorization; and 55 |
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| 70 | 70 | | (3) this section shall terminate on September first of 56 |
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| 71 | 71 | | the calendar year immediately following the calendar year in 57 |
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| 72 | 72 | | which the program authorized pursuant to this section is 58 |
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| 73 | 73 | | sunset. 59 |
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| 74 | 74 | | (4) The provisions of this subsection shall not be 60 |
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| 75 | 75 | | construed to limit or in any way impair the department of 61 |
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| 76 | 76 | | revenue's ability to redeem tax credits a uthorized on or 62 |
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| 77 | 77 | | before the date the program authorized pursuant to this 63 |
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| 78 | 78 | | section expires, or a taxpayer's ability to redeem such tax 64 |
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| 79 | 79 | | credits. 65 |
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| 80 | 80 | | |
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