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.
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.
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.
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.
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.
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.
HB 1735 creates a tax credit for homeowners and developers renovating or building properties in designated National Register historic districts. It provides a 15% credit against Missouri state income tax (up to $40,000 per new residence) for eligible costs like renovations, construction, or site preparation, excluding costs covered by other grants. To qualify, properties must be owner-occupied or for sale at market rate, at least 40 years old, located in areas with median household income below 90% but above 70% of regional averages, and not in flood zones. The credit excludes costs for properties replacing historic structures or in distressed communities, and requires properties to be in designated historic districts.
HB 1793 modifies the state's earnings tax by adding a new exemption for low-income individuals. It exempts salary, wage, commission, and other compensation income for people earning at or below 150% of the federal poverty level. This change directly affects low-income taxpayers by removing earnings tax liability on their work income. The bill does not alter existing exemptions for organizations like charities, credit unions, or insurance companies listed in the original tax code. The policy change is a specific addition to the tax exemption list, not a broad overhaul.
