Bill > HB1771

This bill establishes new protections for taxpayers who experience tax credit denials by creating a 60-day grace period for paying income tax balances that result solely from a tax credit limit denial. Specifically, if a taxpayer is denied a tax credit due to insufficient funds or because the maximum cumulative amount of credits for a given year has been reached, and this denial causes an income tax balance due, the taxpayer will not be subject to penalties, interest, or additional taxes if they pay the balance or establish an approved payment plan with the Department of Revenue within 60 days of receiving the denial notice. However, if the taxpayer fails to comply with the payment arrangements, they will be liable for penalties and interest as if this protection did not exist. The bill defines a "tax credit limit denial" as a full or partial denial of a tax credit for which the taxpayer otherwise qualifies, based on funding limitations or reaching the statutory credit cap. This provision will apply only to income tax balances due on or after August 28, 2026, giving taxpayers and tax authorities time to prepare for the new requirements.

Budget and Finance, Government Affairs

https://house.mo.gov/Bill.aspx?bill=HB1771&year=2026&code=R