Bill > HB1553

This bill modifies the Missouri Working Family Tax Credit Act by establishing a state-level earned income tax credit that is based on the federal earned income tax credit. The bill defines eligible taxpayers as Missouri residents who qualify for the federal earned income tax credit and allows them to claim a state tax credit equal to 10% of their federal credit, with the potential to increase to 20% if certain revenue conditions are met. Initially, for tax years through 2025, any tax credit that exceeds a taxpayer's tax liability will not be refunded or carried forward. However, starting in 2026, the tax credits will become fully refundable, meaning taxpayers can receive the full credit amount even if it exceeds their tax liability. The Department of Revenue is required to proactively identify potentially eligible taxpayers, prepare annual reports on the credit's usage, and create rules for implementing the program. The credit is specifically designed to provide additional financial support to working families with lower incomes by supplementing their federal earned income tax credit at the state level.

https://house.mo.gov/Bill.aspx?bill=HB1553&year=2025&code=R