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Bill > HB2945
MO HB2945
MO HB2945Amends tax law to provide for additional subtractions for capital gains that are recharacterized as ordinary income by IRS
summary
Introduced
01/13/2026
01/13/2026
In Committee
02/17/2026
02/17/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
Amends tax law to provide for additional subtractions for capital gains that are recharacterized as ordinary income by IRS
AI Summary
This bill amends Missouri tax law to allow for additional subtractions from income for capital gains that are recharacterized as ordinary income by the IRS, specifically for tax years beginning on or after January 1, 2026, and also for estates and trusts. This means that certain income that is treated as ordinary income for federal tax purposes, but would have been considered a capital gain without specific IRS code provisions (26 U.S.C. Sections 1245 and 1250), can now be subtracted from Missouri taxable income, effectively reducing the state income tax liability on those gains.
Committee Categories
Budget and Finance, Government Affairs
Sponsors (1)
Last Action
Placed on the Informal Perfection Calendar (H) (on 02/24/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://house.mo.gov/Bill.aspx?bill=HB2945&year=2026&code=R |
| Analysis - Summary: Committee | https://documents.house.mo.gov/billtracking/bills261/sumpdf/HB2945C.pdf |
| Fiscal Note - 5663H.01I.ORG | https://documents.house.mo.gov/billtracking/bills261/fiscal/fispdf/5663H.01I.ORG.pdf |
| Analysis - Summary: Introduced | https://documents.house.mo.gov/billtracking/bills261/sumpdf/HB2945I.pdf |
| BillText | https://documents.house.mo.gov/billtracking/bills261/hlrbillspdf/5663H.01I.pdf |
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