Bill > HB1478

This bill modifies the Missouri Working Family Tax Credit Act by establishing a state-level earned income tax credit that mirrors the federal earned income tax credit. Under the bill, eligible taxpayers (Missouri residents with certain filing statuses who qualify for the federal earned income tax credit) can receive a tax credit equal to 10% of their federal credit, with the potential to increase to 20% if net general revenue meets specific thresholds. Initially, the tax credit is non-refundable, meaning if the credit exceeds tax liability, the excess cannot be refunded or carried forward. However, starting January 1, 2026, the credit becomes fully refundable. The Department of Revenue is required to proactively identify potentially eligible taxpayers who have not applied for the credit and to prepare an annual report detailing the tax credits issued. The bill also allows the department to create rules for implementing the tax credit and ensures that the credit is not subject to certain existing tax credit requirements. The key innovation is making the state earned income tax credit more accessible and potentially more valuable to working families with lower incomes.

https://house.mo.gov/Bill.aspx?bill=HB1478&year=2025&code=R