Modifies provisions relating to the "Missouri Working Family Tax Credit Act" and makes the tax credit refundable

HB 1565 modifies Missouri's Working Family Tax Credit Act to make the tax credit refundable starting in 2026 (previously non-refundable), directly affecting low-income Missouri residents who qualify for the federal Earned Income Tax Credit (EITC). The bill establishes a base 10% credit (potentially increasing to 20% if state revenue grows significantly) based on the federal EITC amount, with the credit applied against state income tax liability. It also requires the state tax department to proactively notify eligible taxpayers who didn't claim the credit and to publish annual reports on credit usage and distribution. The changes apply to tax years beginning on or after January 1, 2023, with refundability taking effect for 2026 and later.