Budget & Taxes (Income Tax)

in committee · Missouri · House Feb 12, 2026

HB 2116: Modifies provisions governing contributions to qualified tuition programs

HB 2116 modifies Missouri's tax treatment for qualified tuition programs, primarily federal 529 college savings plans. It exempts program assets, income, and refunds for qualified education expenses from state income tax, while allowing taxpayers to deduct up to $8,000 annually (or $16,000 for joint filers) from their state taxable income for contributions. Distributions not used for education expenses or transferred per federal rules would become taxable income. This bill directly affects Missouri residents who use 529 plans for education savings, providing state tax benefits tied to federal program rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for education savings, reducing state tax burden on contributors and aligning with tax incentive policies for families.95% confidence ✓ EducationSupports EducationProvides tax incentives for 529 college savings plans, increasing higher education affordability through state tax deductions and exemptions.95% confidence

Sub-Topics Income Tax Higher Education

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in committee · Missouri · House Jan 20, 2026

HB 2215: Authorizes an income tax deduction for amounts paid towards tangible personal property taxes

HB 2215 would allow Missouri residents to deduct all paid tangible personal property taxes (such as taxes on cars, boats, or equipment) from their state income tax starting in 2027. Eligible taxpayers could claim this deduction either as a standard subtraction or through itemized deductions on their state tax return, excluding penalties, interest, or special assessments. The Department of Revenue would verify qualifying amounts, and the program would automatically expire six years after implementation unless the legislature reauthorizes it. This change directly affects individual taxpayers with tangible personal property tax obligations who file Missouri income taxes.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllows income tax deduction for property taxes, reducing tax burden for residents - direct tax relief aligned with middle-income support indicators.92% confidence

Sub-Topics Income Tax Property Tax

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in committee · Missouri · House May 15, 2026

HB 1921: Creates the "Missouri Worker Dues Tax Fairness Act", authorizing an income tax subtraction for certain union dues paid to a labor organization by a taxpayer

HB 1921, the "Missouri Worker Dues Tax Fairness Act," allows Missouri taxpayers to subtract union dues from their state income tax. It applies to individuals who pay union dues (including initiation fees but excluding political contributions) and are subject to Missouri income tax, with a maximum annual subtraction of $2,000 per person or $4,000 for joint returns. The deduction becomes effective for tax years beginning January 1, 2027, and requires taxpayers to provide documentation like pay stubs or union statements to claim the benefit. This policy directly affects union members by reducing their taxable income for state tax purposes.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax relief for workers via union dues subtraction, aligning with tax relief indicators for middle-income taxpayers.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentAllows tax deduction for union dues, strengthening collective bargaining by reducing financial burden on workers and supporting union membership rights under Labor & Employment policies.95% confidence

Sub-Topics Income Tax Collective Bargaining

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in committee · Missouri · House May 15, 2026

HB 1816: Modifies provisions relating to an income tax credit for contributions to pregnancy resource center

HB 1816 creates a Missouri state tax credit for individuals and businesses donating to qualifying pregnancy resource centers. Taxpayers can claim a credit equal to 50% of donations for 2007-2020, rising to 70% for 2021-2026, and 100% after 2027, with a $50,000 annual cap per donor. To qualify, centers must provide in-person pregnancy support services without performing or referring for abortions, operate at no cost to clients, and meet specific service and exemption requirements under Missouri law. The credit reduces state tax liability for donors who contribute to these designated centers.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credits reducing taxable income for donations to pregnancy centers, providing tax relief as a fiscal incentive under Missouri's tax code.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Missouri · House May 15, 2026

HB 2449: Establishes the "Missouri Parental Choice Tax Credit Act" relating to a tax credit for certain educational expenses

HB 2449 creates a tax credit for Missouri residents who pay for eligible educational expenses for their children attending qualifying schools. It directly affects parents or guardians of students enrolled in private, parochial, home, or family-paced schools (excluding public schools). The credit covers tuition, textbooks, curriculum materials, tutoring, technology, and educational therapies, but excludes basic supplies like paper/pens and costs tied to public school activities. The credit amount is limited to 100% of eligible expenses or Missouri’s state funding target for education, whichever is lower, and becomes available starting tax year 2027. Taxpayers must submit itemized expense lists and documentation with their state income tax return.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit reducing tax burden for families using qualifying schools, aligning with tax relief indicators for educational expenses.90% confidence ✓ EducationSupports EducationCreates tax credits for private/parochial/home school expenses, expanding parental educational choice and access beyond public schools.95% confidence

Sub-Topics Income Tax Tax Credits Curriculum Higher Education School Choice

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in committee · Missouri · House May 15, 2026

HB 2111: Modifies provisions relating to the calculation of income tax, repealing income tax subtractions for certain capital gains

HB 2111 modifies Missouri's income tax calculation by adding certain items back to federal adjusted gross income that were previously subtracted, effectively repealing specific capital gains subtractions. It directly affects Missouri taxpayers who claimed federal deductions or refunds that previously reduced their state taxable income, such as pandemic-related federal tax refunds or certain capital gains. Key provisions include adding back federal tax refunds benefiting Missouri (excluding pandemic credits), interest on specific government bonds, and excess deductions for property purchases (2002-2003) or net operating losses. The bill eliminates prior subtractions for certain capital gains, increasing taxable income for affected taxpayers under Missouri law.

Topics ✓ Budget & TaxesSupports Budget & TaxesRepeals capital gains subtractions, increasing state tax revenue by closing a tax loophole that previously reduced taxable income.95% confidence

Sub-Topics Income Tax

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in committee · Missouri · Senate Jan 27, 2026

SB 1240: Eliminates the individual income tax

SB 1240 would eliminate the state's individual income tax, meaning residents would no longer pay taxes on their earnings. This change would directly affect all state residents who currently file income tax returns. The bill's key provision is the complete removal of the tax obligation, requiring the state to rely on alternative revenue sources. The bill was prefilled in December 2025 and received its first reading in January 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates individual income tax, providing direct tax relief and removing a key revenue source, aligning with tax relief indicators.95% confidence

Sub-Topics Business Taxes Income Tax Revenue

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in committee · Missouri · Senate Jan 29, 2026

SB 864: Modifies provisions relating to tax credits

SB 864 creates two new tax credit programs for Missouri businesses. First, it provides a $5 per ton tax credit for wood energy producers using Missouri forest residue to make processed wood products, valid for five years with a $6 million annual cap and expiring after 2028. Second, it establishes a 25% tax credit (up to $75,000 annually per facility) for small meat processing facilities (employing fewer than 500 people total) to cover modernization or expansion costs like equipment, building upgrades, or waste management systems, with a $2 million annual statewide cap. Both credits reduce state tax liability but are non-refundable and require applications to the state authority. The bill replaces prior tax credit provisions and sets specific expiration dates for all new credits.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credits for businesses, reducing tax burden and aligning with tax relief support indicators per bill summary.95% confidence ✓ EnergySupports EnergyProvides tax credits for wood energy producers using renewable forest residue, directly funding renewable energy infrastructure and production per bill summary.95% confidence ✓ TransportationSupports TransportationBill extends tax credits for ethanol, biodiesel, and railroad infrastructure, directly supporting transportation fuel and rail development.85% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Freight Rail Transportation Funding

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in committee · Missouri · House May 15, 2026

HB 1703: Modifies provisions relating to an income tax deduction for military members engaged in certain civilian federal service

HB 1703 allows Missouri taxpayers who serve in the National Guard or military reserves to deduct a portion of their military-related income from their state taxable income. The deduction percentage increases gradually - from 20% in 2020 up to 100% starting in 2024 - and applies to income from training, reserve duty, or joining/re-enlistment bonuses. It directly affects Missouri military members (National Guard/reserves) who file state tax returns, reducing their taxable income for eligible military compensation. The bill also specifies that this deduction will no longer apply to civilian federal service positions (including uniformed roles) beginning in 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for military members, reducing taxable income and offering tax relief per state income tax policy.90% confidence ✓ VeteransSupports VeteransProvides tax deduction for military members' income, reducing tax burden and directly supporting veterans' financial well-being through income tax relief for National Guard/reserve service.95% confidence

Sub-Topics Income Tax National Guard & Reserve

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in committee · Missouri · House May 15, 2026

HB 1670: Modifies provisions relating to income tax on tips

HB 1670 corrects a misleading title; it does not address income tax on tips but modifies Missouri's tax calculation rules for adjusted gross income. The bill repeals existing tax provisions and adds new rules to adjust federal tax items when calculating Missouri income tax, including: adding back certain federal tax refunds (excluding pandemic-related credits), including interest on specific government bonds, and adjusting deductions for property purchases and net operating losses. These changes affect all Missouri taxpayers who file state income tax returns, as they alter how federal tax items are treated for state tax purposes. The bill focuses on aligning Missouri's tax code with federal adjustments rather than creating new tax rates or exemptions.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies tax calculation rules to close loopholes (adding back federal refunds, adjusting deductions), increasing fiscal responsibility95% confidence

Sub-Topics Income Tax

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