Budget & Taxes (Income Tax)

signed · Missouri · House Jul 13, 2026

HB 3231: Establishes the "Missouri Innovation, Public Safety, and Accountability Act"

HB 3231 establishes Missouri's "Innovation District Program," allowing cities to voluntarily designate specific downtown or main street areas as innovation districts to access state economic development incentives. Participating cities must submit a master plan outlining district boundaries, infrastructure needs, and how incentives will be used, which the state must approve within 45 days. The bill provides standardized state tax breaks (like income tax exemptions and opportunity zones) and local incentives (such as property tax abatements) for qualifying projects within designated districts, evaluated using a uniform "master scorecard." It ensures these incentives apply automatically to eligible projects without local restrictions but explicitly states cities cannot be forced to join and local zoning authority remains intact.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax exemptions and incentives for economic development, a direct form of tax relief under Budget & Taxes policy.90% confidence

Sub-Topics Income Tax Property Tax Tax Incentives Tags Economic Development

in committee · Missouri · House May 15, 2026

HB 3376: Modifies provisions relating to the calculation of income tax, repealing income tax subtractions for certain capital gains

HB 3376 repeals Missouri's income tax subtractions for certain capital gains, directly affecting individual taxpayers who previously reduced their Missouri taxable income using these deductions. The bill modifies how Missouri calculates income tax by removing specific subtractions, requiring taxpayers to include amounts previously excluded - such as gains from property with higher Missouri basis than federal basis - into their taxable income. This change aligns Missouri's tax calculation more closely with federal rules for these specific capital gains scenarios, eliminating a prior tax benefit. The bill does not alter tax rates but adjusts the income base for affected taxpayers.

Topics ✓ Budget & TaxesSupports Budget & TaxesRepeals tax subtractions for capital gains, closing a loophole that reduced taxable income. Aligns with fiscal responsibility and closing tax loopholes, a key support indicator.95% confidence

Sub-Topics Income Tax

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in committee · Missouri · House May 15, 2026

HB 3382: Reestablishes the ticket to work health assurance program

HB 3382 reestablishes a state health assistance program for employed individuals with disabilities who meet specific income and asset criteria, directly affecting working people with disabilities who previously lost Medicaid coverage due to earnings. The bill allows medical assistance for those earning up to 250% of the federal poverty level (FPL), with premiums based on income brackets (4-6% of income), while excluding certain assets like medical savings accounts and retirement funds from eligibility calculations. Key provisions include requiring proof of Medicare/Social Security tax withholding for earned income, prioritizing employer-sponsored insurance when cost-effective, and mandating annual reports to the legislature on program participation. The program expires on August 28, 2032, and aligns with federal Ticket to Work Act requirements.

Topics ✓ Budget & TaxesSupports Budget & TaxesRestores state-funded Medicaid coverage for disabled workers via income-based premiums, directly increasing budget allocation for essential social services.90% confidence ✓ HealthcareSupports HealthcareReestablishes Medicaid coverage for employed disabled individuals previously denied assistance, expands access to medical aid up to 250% FPL, directly strengthens Medicaid/MO HEALTHNET program as per bill summary.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentReestablishes healthcare program preventing Medicaid loss for employed disabled individuals due to earnings, directly supporting workforce participation and benefits for vulnerable workers.95% confidence

Sub-Topics Income Tax Medicaid Medicare Tags People with Disabilities

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in committee · Missouri · House May 15, 2026

HB 3324: Modifies provisions related to an income tax deduction for certain farmers

HB 3324 modifies Missouri's method for calculating taxable income by adjusting federal adjusted gross income. It adds back certain federal tax benefits previously deducted, including pandemic-related refunds (like CARES Act payments), interest on specific government bonds, and excess depreciation deductions. The bill also includes subtraction provisions for items like federal interest income and state tax refunds to offset these additions. These changes apply broadly to Missouri taxpayers - not just farmers - and aim to align state tax calculations more closely with federal rules for specific income items. The bill is currently in early legislative stages (introduced February 2026).

Topics ✓ Budget & TaxesSupports Budget & TaxesCloses tax loophole by adding back federal benefits (e.g., CARES refunds) previously deducted, increasing state revenue through adjusted taxable income calculation.90% confidence

Sub-Topics Income Tax

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in committee · Missouri · Senate May 7, 2026

SB 1793: Creates the offense of unlawful possession of a firearm by a minor and creates an income tax deduction for compensation as a first responder

SB 1793 creates a new criminal offense for minors possessing firearms without permission and establishes an income tax deduction for first responders receiving certain compensation payments. The bill would make it illegal for minors to have firearms (excluding authorized scenarios like supervised training), and allow first responders to deduct specific compensation (e.g., overtime or hazard pay) from their taxable income. This bill directly affects minors and first responders in the state, with no further details available as it is newly introduced (first read on 2026-02-26).

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax deduction for first responders' compensation, providing tax relief as a fiscal benefit under tax policy.95% confidence ✗ Criminal JusticeOpposes Criminal JusticeCreates new criminal offense for minors with firearms, expanding criminalization. Tax deduction for first responders is tangential and does not offset punitive measure.95% confidence

Sub-Topics Income Tax Drug Policy Firearms

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in committee · Missouri · House May 15, 2026

HB 3101: Modifies provisions relating to benevolent tax credits

HB 3101 proposes tax credits for Missouri taxpayers who donate to domestic violence shelters or rape crisis centers. Businesses and individuals can claim a credit equal to 50% of donations before July 1, 2022; 70% from July 1, 2022, through 2025; and 100% for donations to rural facilities starting July 1, 2026. Credits cannot exceed $100,000 annually per taxpayer (adjusted for inflation) or the taxpayer’s state income tax liability, with a $2 million total cap before 2022. The Department of Social Services will classify eligible facilities and manage credit allocation, requiring donors to contribute at least $100 annually to qualify. The bill is currently in the early stages of the legislative process.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits for donations to domestic violence shelters, offering tax relief to fund essential services while capping credits to limit fiscal impact.90% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Missouri · House Apr 23, 2026

HB 2975: Modifies provisions relating to the calculation of income tax, establishing new progressive personal income brackets and repealing income tax subtractions for certain capital gains, with a referendum clause

HB 2975 changes Missouri's personal income tax structure by creating new progressive tax brackets and eliminating tax breaks for certain capital gains. It establishes a temporary top rate of 4.95% for 2023-2026 (down from 5.9%), with potential further reductions if state revenue exceeds specific thresholds. Starting in 2027, new brackets take effect with a 0% rate for income under $2,000, followed by 2.9% to 5.9% rates for higher income levels, adjusted annually for inflation. This bill directly affects all Missouri residents filing state income taxes, altering how their taxable income is calculated under the new rates and brackets.

Topics ✓ Budget & TaxesSupports Budget & TaxesRepeals capital gains tax breaks and establishes progressive brackets with 0% for low-income earners, closing loopholes while reducing top rates - clear tax equity focus.95% confidence

Sub-Topics Business Taxes Income Tax Revenue

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in committee · Missouri · House May 15, 2026

HB 2882: Authorizes a tax credit for charitable contributions to certain organizations providing mental health services to veterans

HB 2882 creates a state tax credit allowing Missouri taxpayers to reduce their income tax liability by 70% of donations (up to $50,000 annually) to nonprofit organizations providing mental health services to veterans. The credit applies to contributions made to qualified 501(c)(3) organizations meeting specific criteria, including offering comprehensive mental health care through licensed professionals. Taxpayers can carry forward unused credits to the next tax year but cannot claim credits for donations under $100. The program expires after six years unless reauthorized by the legislature.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit reducing income tax liability for donations to veteran mental health nonprofits, providing tax relief to incentivize public service funding.95% confidence ✓ HealthcareSupports HealthcareProvides tax incentives to fund mental health services for veterans via charitable donations, directly advancing mental health care access.95% confidence ✓ VeteransSupports VeteransCreates 70% tax credit for donations to nonprofits providing veteran mental health services, directly funding and expanding access to veteran healthcare programs.95% confidence

Sub-Topics Income Tax Tax Credits Mental Health Veteran Mental Health

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in committee · Missouri · Senate Feb 5, 2026

SB 1537: Authorizes a tax credit for certain firearm safety training courses

SB 1537 authorizes a tax credit for individuals who complete specific firearm safety training courses. This credit would reduce the amount of state income tax owed for residents who take qualifying courses. The bill directly affects residents who enroll in these approved training programs by lowering their tax liability. The exact course requirements and credit amount are not specified in the abstract and would be defined through implementing regulations.

Topics ✓ Budget & TaxesSupports Budget & TaxesAuthorizes tax credit reducing state income tax liability, providing direct tax relief to residents who complete qualifying firearm safety courses.90% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Missouri · House May 15, 2026

HB 2705: Modifies provisions governing contributions to qualified tuition programs

HB 2705 modifies Missouri's tax treatment of qualified tuition programs (like 529 college savings plans). It exempts money in these plans from state income tax and allows taxpayers to deduct up to $8,000 annually (or $16,000 for joint filers) from their Missouri adjusted gross income for contributions. Funds withdrawn for non-education purposes or not used within required timeframes must be added back to taxable income. This bill directly affects Missouri residents using 529 plans for education savings by providing state tax benefits for contributions and growth.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts 529 contributions from state income tax and allows annual deductions, providing tax relief for education savings. Directly modifies tax treatment per subjects listed.95% confidence ✓ EducationSupports EducationProvides tax incentives for 529 plans, increasing accessibility to higher education savings and aligning with educational access and funding support.90% confidence

Sub-Topics Income Tax Higher Education

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