Bill > SB13

This bill modifies the Missouri Working Family Tax Credit by establishing a new tax credit for eligible taxpayers who qualify for the federal Earned Income Tax Credit (EITC). Under the new provisions, beginning in 2023, eligible taxpayers can claim a state tax credit equal to ten percent of their federal EITC, with the potential to increase to twenty percent if certain revenue conditions are met. An eligible taxpayer is defined as a Missouri resident with a single, head of household, widowed, or married filing combined tax status who is allowed the federal EITC. The credit can be claimed when filing taxes and will be applied against income tax liability, with any excess amount being fully refundable to the taxpayer. The percentage increase to twenty percent is contingent on the state's net general revenue collected in the previous fiscal year exceeding the highest revenue of the three prior fiscal years by at least $150 million. The Department of Revenue is required to proactively identify potential eligible taxpayers, prepare an annual report on the tax credits issued, and has the authority to create rules and regulations for implementing this program. Notably, these tax credits are exempt from certain existing tax credit reporting requirements.

https://www.senate.mo.gov/25info/BTS_Web/Bill.aspx?SessionType=E1&BillID=18267457