SB 183 - This act establishes the Missouri Earned Income Tax Credit Act. For all tax years beginning on or after January 1, 2020, this act creates a tax credit in an amount equal to a percentage of the amount of a taxpayer's federal earned income tax credit. The amount of the credit shall increase in five percent increments per tax year, beginning with five percent in the 2020 tax year until the credit reaches twenty percent for all tax years beginning on or after January 1, 2023.
In addition to the credit based on a percentage of a taxpayer's federal earned income tax credit, taxpayers with Missouri adjusted gross income of at least 50% of the annual salary of a taxpayer working an average of 40 hours per week at the minimum wage, but less than $25,000, shall be allowed an additional credit, whether or not allowed a federal earned income tax credit. The amount of the credit shall increase over a period of four years, with a fully phased-in credit amount of $400 for taxpayers with a filing status of single, head of household, or qualified widow or widower, and $800 for taxpayers with a filing status of married filing combined.
The tax credits shall be applied to a taxpayer's Missouri income tax liability after all reductions for other credits for which the taxpayer is eligible have been applied. If the tax credit exceeds the amount of the taxpayer's tax liability, the excess amount shall be refunded.
The Department of Revenue shall determine whether a taxpayer who did not apply for the tax credit established by this act is eligible and shall notify such taxpayer of his or her potential eligibility.
The Department shall prepare an annual report regarding the tax credit established by this act containing certain information as described in the act.
The Department shall contract with one or more nonprofit groups to provide notice of the tax credit established by this act to eligible taxpayers.
This act is substantially similar to HB 291 (2019), HB 1194 (2019), SB 939 (2018), SB 615 (2018), and SB 197 (2017), and to a provision contained in SCS/SB 52 (2019), HB 846 (2019), HCS/HB 1357 (2018), HB 2502 (2018), SBs 617, 611, & 667 (2018), and HCS/HB 1605 (2016), and is similar to HB 2154 (2016), 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).
JOSHUA NORBERG