Bill > HB2646

This bill, titled the "Missouri No Tax on Car Loan Interest Tax Credit," establishes a tax credit for individuals who pay interest on loans for new motor vehicles purchased for personal use, provided the vehicle's final assembly occurred in Missouri and it was sold in the state on or after January 1, 2026. The credit applies to interest paid on qualified passenger vehicle loans, with a maximum qualified amount of $10,000 per taxpayer per year. However, the credit amount is reduced by $200 for every $1,000 (or portion thereof) that the taxpayer's Missouri adjusted gross income exceeds $100,000 (or $200,000 for those filing a combined return). To claim the credit, taxpayers must include the vehicle identification number on their tax return. The tax credits are non-refundable, cannot be carried forward to future years, and cannot be assigned or transferred. The program is set to sunset four years after its effective date unless reauthorized by the General Assembly.