Bill > HB2705

This bill modifies provisions governing contributions to qualified tuition programs, which are savings plans designed to encourage saving for future education costs, often established under Section 529 of the Internal Revenue Code. Specifically, it clarifies that assets and income held within these programs, including Missouri's own "program held by the board" and the "deposit program," are exempt from state and local taxation. The bill also states that income earned or received from these programs, or refunds of qualified education expenses that are promptly reinvested into such a program, will not be subject to state income tax and will be eligible for benefits under Section 529 of the Internal Revenue Code. Furthermore, it introduces a subtraction from Missouri adjusted gross income for annual contributions made to the "HB 2705 program" or the "Missouri education program" (established under sections 166.400 to 166.455), or both, up to $8,000 per taxpayer or $16,000 for married couples filing jointly. However, if deductible contributions or earnings are distributed and not used for qualified education expenses, not transferred according to federal rules, or not held for the required minimum time, they will be included in the participant's Missouri adjusted gross income. These changes apply to tax years beginning on or after January 1, 2008, with some provisions related to the deposit program applying to tax years beginning on or after January 1, 2004.

https://house.mo.gov/Bill.aspx?bill=HB2705&year=2026&code=R