HB 425 Missouri House · 2025 Regular Session

Phases out the corporate income tax

HB 425 phases out Missouri's corporate income tax through a gradual rate reduction, eliminating the tax entirely by tax years beginning January 1, 2029. It reduces the tax rate step-by-step: from 4% (2020-2025) to 3% (2026), 2% (2027), 1% (2028), and zero starting 2029. The bill directly affects corporations operating in Missouri, excluding out-of-state businesses under specific sections. This policy change represents a concrete shift in state revenue structure, with no tax applied to corporate profits after 2028.

Issues: ✗ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Dec 2024

Committee Review

Floor Vote

Governor

Introduced Dec 6, 2024 Last action Mar 11, 2025

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What changed between versions

Introduced → House Committee Substitute · 3 edits

MINOR

The bill was amended to add a temporary one percent corporate income tax for the 2028 tax year, creating a phased reduction schedule that eliminates the tax entirely by 2029. The bill number was updated to reflect its new status as a House Committee Substitute, and the Chief Clerk's name was changed from Dana Rademan Miller to Joseph Engler.

Scope change

The bill's scope expanded by adding a new tax provision for the 2028 tax year, creating a three-year phase-out schedule for the corporate income tax.

TIMELINE

Added a new tax provision imposing a one percent corporate income tax for tax years beginning between January 1, 2028 and December 31, 2028.

Reorganized the tax phase-out schedule to show a two percent tax in 2027, one percent in 2028, and zero percent in 2029.

TECHNICAL

Updated the bill header to reflect its new status as a House Committee Substitute and changed the Chief Clerk's name from Dana Rademan Miller to Joseph Engler.

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 20, 2025

Lower · Passed

Returned to Committee of Origin (H) - Special Committee on Tax Reform - AYES: 8 NOES: 0 PRESENT: 0

lower

Feb 20, 2025

Lower · Passed

Voted to Return to the Committee of Origin (H)

lower

Jan 30, 2025

Committee

Referred: Rules - Administrative(H)

lower

Jan 29, 2025

Lower · Passed

HCS Reported Do Pass (H) - AYES: 7 NOES: 3 PRESENT: 0

lower

Jan 28, 2025

Lower · Passed

HCS Voted Do Pass (H)

lower

Jan 16, 2025

Committee

Referred: Special Committee on Tax Reform(H)

lower

Dec 6, 2024

Introduced

Prefiled (H)

lower

1 primary · 1 co-sponsor