Bill > HB1479

This bill modifies the Missouri Working Family Tax Credit Act to expand and gradually make the state earned income tax credit (EIC) refundable. Currently, the tax credit is set at 10% of the federal earned income tax credit, with the potential to increase to 20%, but the credit cannot reduce tax liability below zero. The bill introduces a phased approach where, for tax years before January 1, 2026, the credit remains non-refundable, but starting in 2026, the credit will become fully refundable. The credit is available to Missouri residents who qualify for the federal earned income tax credit and have specific filing statuses, such as single, head of household, widowed, or married filing combined. The percentage increase from 10% to 20% is contingent on the state's net general revenue exceeding the highest revenue of the previous three fiscal years by at least $150 million. The bill also requires the Missouri Department of Revenue to proactively identify potentially eligible taxpayers who have not claimed the credit and to prepare an annual report detailing the credit's usage and impact across different income ranges.

https://house.mo.gov/Bill.aspx?bill=HB1479&year=2025&code=R