MISSOURI EARNED INCOME TAX CREDIT (Section 135.760)

This act authorizes a Missouri earned income tax credit for individuals that qualify for a federal earned income tax credit. The tax credit will be in an amount equal to 20% of the federal tax credit. The tax credit will be non-refundable and shall not be carried forward. Taxpayers may be eligible for the tax credit beginning January 1, 2019.

The Department of Revenue is required to prepare a report on certain statistical information regarding the tax credit. The Department shall also contract with a nonprofit group to provide notice of the tax credit to eligible taxpayers. The provisions in this section shall expire six years after enacted unless reauthorized by the General Assembly.

This provision is similar to SB 1018 (2016), SB 40 (2015), SB 687 (2014), HB 1120 (2014), HB 895 (2013), HB 1606 (2012), HB 581 (2011), and HB 1915 (2010).

RENTAL PROPERTY TAX CREDIT (Section 135.1160)

This act authorizes an income tax credit for specific costs incurred in the renovation of a taxpayer's rented residence after January 1, 2017. The building must be a multi-family dwelling with at least two units, one of which must be occupied by the taxpayer.

The credit is equal to 20% of the cost of renovations up to $2,500 per taxpayer. The tax credit is issued on a first-come, first-served basis and is not refundable or transferable but can be carried forward for three years. No more than $5 million of tax credits can be issued under this section in any fiscal year. The provisions in this section shall expire six years after enacted unless reauthorized by the General Assembly.

This provision is similar to HB 863 (2015).

CONTRIBUTION TO SCHOOL FOUNDATIONS (Section 135.1910)

Beginning January 1, 2019, this provision authorizes a tax credit in an amount equal to 50% of the taxpayer's contribution to a qualified organization that provides funding for unmet health, hunger, and hygiene needs for children in school. The amount of the tax credit claimed cannot exceed the amount of the taxpayer's state tax liability for the tax year that the credit is claimed, and the taxpayer is not allowed to claim a tax credit in excess of $50,000 per tax year.

Any tax credit that cannot be claimed in the tax year that the contribution was made may be carried over to the next four succeeding taxable years until the full credit has been claimed. A taxpayer's minimum contribution or contributions to a qualified organization or organizations must be $100, except for excess credit that is being carried over.

The Director of the Department of Social Services must determine, at least annually, which organizations in the state may be classified as qualified organizations. The director is subject to confidentiality and penalty provisions relating to the disclosure of tax information.

These provisions cannot limit or in any way impair the department's ability to issue tax credits authorized on or before the date the program expires or a taxpayer's ability to redeem the tax credits.

The provisions in this section shall expire six years after enacted unless reauthorized by the General Assembly.

This provision is similar to a provision in HCS/HBs 1589 & 2307 (2016) and HB 428 (2015).

BRING JOBS HOME ACT (Section 143.1100)

This act authorizes an income tax deduction equal to 50% of the expenses associated with eliminating a business unit located outside Missouri and reestablishing that unit within the state. The elimination must occur under a written insourcing plan, but the elimination and relocation need not take place in the same year.

For the tax deduction to apply, the number of full-time employees in the state during the year the deduction is claimed must exceed the number during the year before the insourcing costs were paid. Insourcing costs are taken into account during the tax year where the plan is completed and the expenses were incurred, or the year immediately following that year.

Tax deductions under this section are capped at $5 million and are allowed on a first come, first served basis. Deductions may be carried forward for five years. A taxpayer must repay the deduction if the taxpayer eliminates the business unit for which the deduction was provided. The provisions in this section shall expire six years after enacted unless reauthorized by the General Assembly.

This provision is similar to SCS/HCS/HB 325 (2015).

DOMENIC SITA