Modifies provisions relating to taxation

Removed detailed rules regarding the addition of federal income tax refunds and specific interest exclusions to Missouri adjusted gross income.

Added a requirement that tax returns for tax years beginning on or after January 1, 2026, must display the name of the taxpayer's public school district.

Added a mandate that reports and returns filed under the tax chapter must be preserved for four years.

Added a requirement to include federal tax refunds related to direct economic impact payments for the COVID-19 pandemic in Missouri taxable income, in addition to existing rules about prior-year refunds.

Updated the definition of interest expense deductions to explicitly reference the federal limitation on business interest (Section 163(j)) and clarified when interest is considered paid or accrued.

Reorganized the structure of the income tax section to clarify the order of additions and subtractions from federal adjusted gross income.

References to sections 143.174, 143.175, and 143.591 were deleted from the list of repealed sections and the list of newly enacted sections.

The bill now repeals seven specific RSMo sections (143.121, 143.174, 143.175, 143.511, 143.591, 143.621, and 143.971) instead of just one, indicating a major restructuring of the income tax code.

New provisions require taxpayers to add back federal income tax refunds received for prior years if those refunds provided a Missouri tax benefit, with specific exclusions for pandemic-related economic impact payments.

The bill adds back certain federal deductions for interest on Missouri state obligations and specific property tax deductions related to the Jobs Creation Act of 2002.

Rules for nonresident individuals were updated to require adding back property taxes paid to other states if those states do not offer a reciprocal subtraction for taxes paid to Missouri.

New language clarifies that net operating losses disallowed for Missouri purposes after June 18, 2002, can be carried forward for up to twenty years.

A new provision requires adding back interest expenses that were deducted in the current year due to federal carryforward rules on business interest limitations.