Bill > SB646

This bill creates a new state income tax credit for biological parents of dependents in Missouri, effective for tax years beginning January 1, 2026. Specifically, the bill allows taxpayers who are married to the other biological parent of their dependent to claim a $1,000 tax credit per dependent, with an increased credit of $1,500 per dependent for couples who were married prior to conceiving the child. The term "dependent" is defined as a child for whom the taxpayer can claim a federal dependency exemption. The tax credit can be used against state income tax liability and any excess credit will be refunded to the taxpayer. However, the credits cannot be transferred, sold, assigned, or carried forward to other tax years. The tax credit program is set to automatically sunset on December 31, 2031, unless reauthorized by the Missouri General Assembly, with a potential twelve-year extension if reauthorized. The Missouri Department of Revenue is required to create rules to implement this program, and the bill includes provisions ensuring that any rule-making complies with state administrative procedures.