EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
SENATE BILL NO. 817
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR MCCREERY.
3180S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 135.800, RSMo, and to enact in lieu thereof two new sections relating to a tax
credit for certain charitable donations.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 135.800, RSMo, is repealed and two new 1
sections enacted in lieu thereof, to be known as sections 2
135.640 and 135.800, to read as follows:3
135.640. 1. As used in this section, the following 1
terms mean: 2
(1) "Local hospital foundation", any hospital 3
foundation that: 4
(a) Is exempt from taxation under Section 501(c)(3) of 5
the Internal Revenue Code of 1986, as amen ded; and 6
(b) Provides financial relief for unpaid hospital 7
bills for services provided at not -for-profit hospitals to 8
any person whom the foundation deems to be in need of relief 9
in the area in which the taxpayer claiming the tax credit 10
under this section resides, but donations made by a 11
qualified taxpayer to such foundation may be utilized by the 12
foundation to support programs, equipment purchases, or any 13
other manner the foundation determines as necessary that 14
aligns with the foundation's pu rpose and goals; 15
(2) "Qualified amount", for any qualified taxpayer in 16
a given tax year, an amount equal to fifty percent of the 17
value of the donations made to a local hospital foundation, 18 SB 817 2
to the extent such amount was subtracted from federal 19
adjusted gross income or federal taxable income is added 20
back in to the determination of Missouri adjusted gross 21
income or Missouri taxable income before the credit can be 22
claimed; 23
(3) "Qualified taxpayer", any individual subject to 24
the state income tax imposed under chapter 143 who makes a 25
donation to a local hospital foundation; 26
(4) "Tax credit", a credit against the tax otherwise 27
due under chapter 143, excluding withholding tax imposed 28
under sections 143.191 to 143.265. 29
2. For all tax years beginning on or after January 1, 30
2026, a qualified taxpayer shall be allowed to claim a tax 31
credit against the taxpayer's state income tax liability in 32
an amount equal to the taxpayer's qualified amount. Each 33
taxpayer claiming a tax credit un der this section shall file 34
an affidavit with his or her income tax return verifying the 35
amount of the taxpayer's donations. The amount of the tax 36
credit claimed shall not exceed the amount of the taxpayer's 37
state income tax liability for the tax year that the credit 38
is claimed and shall not exceed two thousand five hundred 39
dollars per taxpayer claiming the credit. 40
3. The cumulative amount of tax credits allowed to all 41
taxpayers under this section shall not exceed two million 42
dollars per calendar year. If the amount of tax credits 43
claimed in a calendar year under this section exceeds two 44
million dollars, tax credits shall be allowed based on the 45
order in which they are claimed. 46
4. No tax credit claimed under this section shall be 47
refundable, but the unused portion of a tax credit that has 48
been claimed and allowed may be carried forward to any of 49
the taxpayer's three subsequent tax years. 50 SB 817 3
5. No tax credit claimed under this section shall be 51
assigned, transferred, sold, or oth erwise conveyed. 52
6. The tax credit authorized under this section shall 53
constitute a domestic and social tax credit, as such term is 54
defined under section 135.800, and shall be subject to the 55
provisions of sections 135.800 to 135.830. 56
7. Notwithstanding any provision of section 105.1500 57
to the contrary, any requirement to provide information, 58
documents, or records under this section, and any 59
requirement established by the department of revenue to 60
provide information, documents, or records for the purpose 61
of administering and enforcing this section, shall be exempt 62
from section 105.1500. 63
8. The department of revenue shall promulgate all 64
necessary rules and regulations for the administration of 65
this section including, but not limite d to, rules relating 66
to the verification of a taxpayer's qualified amount. Any 67
rule or portion of a rule, as that term is defined in 68
section 536.010, that is created under the authority 69
delegated in this section shall become effective only if it 70
complies with and is subject to all of the provisions of 71
chapter 536 and, if applicable, section 536.028. This 72
section and chapter 536 are nonseverable and if any of the 73
powers vested with the general assembly pursuant to chapter 74
536 to review, to delay t he effective date, or to disapprove 75
and annul a rule are subsequently held unconstitutional, 76
then the grant of rulemaking authority and any rule proposed 77
or adopted after August 28, 2025, shall be invalid and void. 78
9. Under section 23.253 of the M issouri sunset act: 79
(1) The provisions of the new program authorized under 80
this section shall automatically sunset December thirty - 81 SB 817 4
first, six years after the effective date of this section 82
unless reauthorized by an act of the general assembly; 83
(2) If such program is reauthorized, the program 84
authorized under this section shall automatically sunset 85
December thirty-first, twelve years after the effective date 86
of the reauthorization of this section; 87
(3) This section shall terminate on S eptember first of 88
the calendar year immediately following the calendar year in 89
which the provisions authorized under this section are 90
sunset; and 91
(4) The provisions of this subsection shall not be 92
construed to limit or in any way impair a taxpaye r's ability 93
to redeem tax credits authorized on or before the date the 94
program authorized under this section expires. 95
135.800. 1. The provisions of sections 135.800 to 1
135.830 shall be known and may be cited as the "Tax 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
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 generation coopera tive 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 production tax 17
credit created pursuant to section 135.700; 18 SB 817 5
(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 135.20 0 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 credit 26
created pursuant to section 135.535, the [film] qualified 27
motion media production project tax credit created pursuant 28
to section 135.750, the enhanced enterprise zone created 29
pursuant to sections 135.950 to 135.970, and the Missouri 30
quality jobs program created pursuant to sections 620.1875 31
to 620.1900; 32
(4) "Community development tax credits", the 33
neighborhood assistance tax credit created pursuant to 34
sections 32.100 to 32.125, the family development account 35
tax credit created pursuant to sections 208.7 50 to 208.775, 36
the dry fire hydrant tax credit created pursuant to section 37
320.093, and the transportation development tax credit 38
created pursuant to section 135.545; 39
(5) "Domestic and social tax credits", the youth 40
opportunities tax credit creat ed pursuant to section 135.460 41
and sections 620.1100 to 620.1103, the shelter for victims 42
of domestic violence or rape crisis center tax credit 43
created pursuant to section 135.550, the senior citizen or 44
disabled person property tax credit created pursu ant to 45
sections 135.010 to 135.035, the adoption tax credit created 46
pursuant to sections 135.325 to 135.339, the champion for 47
children tax credit created pursuant to section 135.341, the 48
maternity home tax credit created pursuant to section 49
135.600, the surviving spouse tax credit created pursuant to 50 SB 817 6
section 135.090, the residential treatment agency tax credit 51
created pursuant to section 135.1150, the pregnancy resource 52
center tax credit created pursuant to section 135.630, the 53
food pantry tax cred it created pursuant to section 135.647, 54
the residential dwelling access tax credit created pursuant 55
to section 135.562, the developmental disability care 56
provider tax credit created under section 135.1180, the 57
shared care tax credit created pursuant to section 192.2015, 58
the health, hunger, and hygiene tax credit created pursuant 59
to section 135.1125, [and] the diaper bank tax credit 60
created pursuant to section 135.621 , and the local hospital 61
foundation charitable donation tax credit created under 62
section 135.640; 63
(6) "Entrepreneurial tax credits", the capital tax 64
credit created pursuant to sections 135.400 to 135.429, the 65
certified capital company tax credit created pursuant to 66
sections 135.500 to 135.529, the seed capital tax credit 67
created pursuant to sections 348.300 to 348.318, the new 68
enterprise creation tax credit created pursuant to sections 69
620.635 to 620.653, the research tax credit created pursuant 70
to section 620.1039, the small business incubator tax credit 71
created pursuant to section 620.495, the guarantee fee tax 72
credit created pursuant to section 135.766, and the new 73
generation cooperative tax credit created pursuant to 74
sections 32.105 to 32.125; 75
(7) "Environmental tax credits", the charcoal producer 76
tax credit created pursuant to section 135.313, the wood 77
energy tax credit created pursuant to sections 135.300 to 78
135.311, and the alternative fuel stations tax credit 79
created pursuant to section 135.710; 80
(8) "Financial and insurance tax credits", the bank 81
franchise tax credit created pursuant to section 148.030, 82 SB 817 7
the bank tax credit for S corporations created pursuant to 83
section 143.471, the exam fee tax credit created pursuant to 84
section 148.400, the health insurance pool tax credit 85
created pursuant to se ction 376.975, the life and health 86
insurance guaranty association tax credit created pursuant 87
to section 376.745, the property and casualty guaranty 88
association tax credit created pursuant to section 375.774, 89
and the self-employed health insurance tax credit created 90
pursuant to section 143.119; 91
(9) "Housing tax credits", the neighborhood 92
preservation tax credit created pursuant to sections 135.475 93
to 135.487, the low-income housing tax credit created 94
pursuant to sections 135.350 to 135.363, an d the affordable 95
housing tax credit created pursuant to sections 32.105 to 96
32.125; 97
(10) "Recipient", the individual or entity who both: 98
(a) Is the original applicant for a tax credit; and 99
(b) Who directly receives a tax credit or the ri ght to 100
transfer a tax credit under a tax credit program, regardless 101
as to whether the tax credit has been used or redeemed; a 102
recipient shall not include the transferee of a transferable 103
tax credit; 104
(11) "Redevelopment tax credits", the historic 105
preservation tax credit created pursuant to sections 253.545 106
to 253.559, the brownfield redevelopment program tax credit 107
created pursuant to sections 447.700 to 447.718, the 108
community development corporations tax credit created 109
pursuant to sections 13 5.400 to 135.430, the infrastructure 110
tax credit created pursuant to subsection 6 of section 111
100.286, the bond guarantee tax credit created pursuant to 112
section 100.297, the disabled access tax credit created 113
pursuant to section 135.490, the new markets tax credit 114 SB 817 8
created pursuant to section 135.680, and the distressed 115
areas land assemblage tax credit created pursuant to section 116
99.1205; 117
(12) "Tax credit program", any of the tax credit 118
programs included in the definitions of agricultural tax 119
credits, business recruitment tax credits, community 120
development tax credits, domestic and social tax credits, 121
entrepreneurial tax credits, environmental tax credits, 122
housing tax credits, redevelopment tax credits, and training 123
and educational tax credit s; 124
(13) "Training and educational tax credits", the 125
Missouri [works] one start new jobs tax credit and Missouri 126
[works] one start retained jobs credit created pursuant to 127
sections 620.800 to 620.809. 128