Bill > HB675

This bill establishes the "First-Time Business Owner Savings Account Act", which creates a tax incentive for individuals from minority backgrounds who want to start their first business. The bill allows eligible taxpayers to open a special savings account and receive a 50% tax deduction for contributions, with annual contribution limits of $800 for individuals and $1,600 for married couples filing jointly. The account can be used to pay for various business startup expenses such as incorporation fees, legal costs, marketing, equipment, inventory, rent, and employee wages. To qualify, the account holder must be a first-time business owner who is a member of a minority group and has never owned a majority stake in a business before. The account has a maximum lifetime contribution limit of $20,000 and a maximum balance of $30,000. Funds can be used for eligible business expenses, transferred to another similar account, or withdrawn after one year without penalty. If funds are withdrawn early or used for non-eligible expenses, the taxpayer may be subject to recapture and penalties. The program is set to automatically sunset after six years unless reauthorized by the Missouri General Assembly, with the goal of supporting minority entrepreneurs in establishing new businesses.

https://house.mo.gov/Bill.aspx?bill=HB675&year=2025&code=R