Bill > HB2616

This bill modifies the Missouri Working Family Tax Credit Act by establishing a state-level earned income tax credit for eligible taxpayers. The credit is initially set at ten percent of the federal earned income tax credit, with the potential to increase to twenty percent if net general revenue collected exceeds the highest amount from the previous three fiscal years by at least $150 million. The bill defines an eligible taxpayer as a Missouri resident with a specific filing status who qualifies for the federal earned income tax credit. For tax years before 2027, the credit cannot reduce tax liability below zero, but starting in 2027, the credit becomes fully refundable. The Department of Revenue is required to proactively identify taxpayers who may qualify for the credit using available data and must prepare an annual report detailing the credits issued. The bill also authorizes the department to create rules for implementing the tax credit and exempts these credits from certain existing tax credit requirements. This legislation aims to provide additional financial support to working families with lower incomes by supplementing the federal earned income tax credit.

https://house.mo.gov/Bill.aspx?bill=HB2616&year=2026&code=R