HOUSE BILL NO. 1774 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE AMATO.
3869H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal section 135.800, RSMo, and to enact in lieu thereof two new sections relating to a tax credit for certain charitable donations.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 135.800, RSMo, is repealed and two new sections enacted in lieu 2 thereof, to be known as sections 135.640 and 135.800, to read as follows: 135.640. 1. As used in this section, the following terms mean: 2 (1) "Local hospital foundation", any hospital foundation that: 3 (a) Is exempt from taxation under Section 501(c)(3) of the Internal Revenue 4 Code of 1986, as amended; and 5 (b) Provides financial relief for unpaid hospital bills for services provided at not- 6 for-profit hospitals to any person whom the foundation deems to be in need of relief in 7 the area in which the taxpayer claiming the tax credit under this section resides, but 8 donations made by a qualified taxpayer to such foundation may be utilized by the 9 foundation to support programs, equipment purchases, or any other manner the 10 foundation determines as necessary that aligns with the foundation's purpose and goals; 11 (2) "Qualified amount", for any qualified taxpayer in a given tax year, an 12 amount equal to fifty percent of the value of the donations made to a local hospital 13 foundation, but, to the extent that such amount was subtracted from federal adjusted 14 gross income or federal taxable income, it shall be added back in to the determination of 15 Missouri adjusted gross income or Missouri taxable income before the credit can be 16 claimed;
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 1774 2
17 (3) "Qualified taxpayer", any individual subject to the state income tax imposed 18 under chapter 143 who makes a donation to a local hospital foundation; 19 (4) "Tax credit", a credit against the tax otherwise due under chapter 143, 20 excluding withholding tax imposed under sections 143.191 to 143.265. 21 2. For all tax years beginning on or after January 1, 2027, a qualified taxpayer 22 shall be allowed to claim a tax credit against the taxpayer's state income tax liability in 23 an amount equal to the taxpayer's qualified amount. Each taxpayer claiming a tax 24 credit under this section shall file an affidavit with his or her income tax return 25 verifying the amount of the taxpayer's donations. The amount of the tax credit claimed 26 shall not exceed the amount of the taxpayer's state income tax liability for the tax year 27 that the credit is claimed and shall not exceed two thousand five hundred dollars per tax 28 year per taxpayer claiming the credit. 29 3. The cumulative amount of tax credits allowed to all taxpayers under this 30 section shall not exceed two million dollars per calendar year. If the amount of tax 31 credits claimed in a calendar year under this section exceeds two million dollars, tax 32 credits shall be allowed based on the order in which they are claimed. 33 4. No tax credit claimed under this section shall be refundable, but the unused 34 portion of a tax credit that has been claimed and allowed may be carried forward to any 35 of the taxpayer's three subsequent tax years. 36 5. No tax credit claimed under this section shall be assigned, transferred, sold, or 37 otherwise conveyed. 38 6. The tax credit authorized under this section shall constitute a domestic and 39 social tax credit, as such term is defined under section 135.800, and shall be subject to 40 the provisions of sections 135.800 to 135.830. 41 7. Notwithstanding any provision of section 105.1500 to the contrary, any 42 requirement to provide information, documents, or records under this section, and any 43 requirement established by the department of revenue to provide information, 44 documents, or records for the purpose of administering and enforcing this section, 45 shall be exempt from section 105.1500. 46 8. The department of revenue shall promulgate all necessary rules and 47 regulations for the administration of this section including, but not limited to, rules 48 relating to the verification of a taxpayer's qualified amount. Any rule or portion of a 49 rule, as that term is defined in section 536.010, that is created under the authority 50 delegated in this section shall become effective only if it complies with and is subject to 51 all of the provisions of chapter 536 and, if applicable, section 536.028. This section and 52 chapter 536 are nonseverable and if any of the powers vested with the general assembly 53 pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul HB 1774 3
54 a rule are subsequently held unconstitutional, then the grant of rulemaking authority 55 and any rule proposed or adopted after August 28, 2026, shall be invalid and void. 56 9. Under section 23.253 of the Missouri sunset act: 57 (1) The provisions of the new program authorized under this section shall sunset 58 six years after the effective date of this section unless reauthorized by an act of the 59 general assembly; 60 (2) This section shall terminate on September first of the calendar year 61 immediately following the calendar year in which the program authorized under this 62 section is sunset; and 63 (3) The provisions of this subsection shall not be construed to limit or in any way 64 impair a taxpayer's ability to redeem tax credits authorized on or before the date the 65 program authorized under this section expires. 135.800. 1. The provisions of sections 135.800 to 135.830 shall be known and may 2 be cited as the "Tax Credit Accountability Act of 2004". 3 2. As used in sections 135.800 to 135.830, the following terms mean: 4 (1) "Administering agency", the state agency or department charged with 5 administering a particular tax credit program, as set forth by the program's enacting 6 statute; where no department or agency is set forth, the department of revenue; 7 (2) "Agricultural tax credits", the agricultural product utilization contributor tax credit 8 created pursuant to section 348.430, the new generation cooperative incentive tax credit 9 created pursuant to section 348.432, the family farm breeding livestock loan tax credit created 10 under section 348.505, the qualified beef tax credit created under section 135.679, and the 11 wine and grape production tax credit created pursuant to section 135.700; 12 (3) "Business recruitment tax credits", the business facility tax credit created pursuant 13 to sections 135.110 to 135.150 and section 135.258, the enterprise zone tax benefits created 14 pursuant to sections 135.200 to 135.270, the business use incentives for large-scale 15 development programs created pursuant to sections 100.700 to 100.850, the development tax 16 credits created pursuant to sections 32.100 to 32.125, the rebuilding communities tax credit 17 created pursuant to section 135.535, the [film] qualified motion media production project 18 tax credit created pursuant to section 135.750, the enhanced enterprise zone created pursuant 19 to sections 135.950 to 135.970, and the Missouri quality jobs program created pursuant to 20 sections 620.1875 to 620.1900; 21 (4) "Community development tax credits", the neighborhood assistance tax credit 22 created pursuant to sections 32.100 to 32.125, the family development account tax credit 23 created pursuant to sections 208.750 to 208.775, the dry fire hydrant tax credit created 24 pursuant to section 320.093, and the transportation development tax credit created pursuant to 25 section 135.545; HB 1774 4
26 (5) "Domestic and social tax credits", the youth opportunities tax credit created 27 pursuant to section 135.460 and sections 620.1100 to 620.1103, the shelter for victims of 28 domestic violence or rape crisis center tax credit created pursuant to section 135.550, the 29 senior citizen or disabled person property tax credit created pursuant to sections 135.010 to 30 135.035, the adoption tax credit created pursuant to sections 135.325 to 135.339, the 31 champion for children tax credit created pursuant to section 135.341, the maternity home tax 32 credit created pursuant to section 135.600, the surviving spouse tax credit created pursuant to 33 section 135.090, the residential treatment agency tax credit created pursuant to section 34 135.1150, the pregnancy resource center tax credit created pursuant to section 135.630, the 35 food pantry tax credit created pursuant to section 135.647, the residential dwelling access tax 36 credit created pursuant to section 135.562, the developmental disability care provider tax 37 credit created under section 135.1180, the shared care tax credit created pursuant to section 38 192.2015, the health, hunger, and hygiene tax credit created pursuant to section 135.1125, 39 [and] the diaper bank tax credit created pursuant to section 135.621, and the local hospital 40 foundation charitable donation tax credit created under section 135.640; 41 (6) "Entrepreneurial tax credits", the capital tax credit created pursuant to sections 42 135.400 to 135.429, the certified capital company tax credit created pursuant to sections 43 135.500 to 135.529, the seed capital tax credit created pursuant to sections 348.300 to 44 348.318, the new enterprise creation tax credit created pursuant to sections 620.635 to 45 620.653, the research tax credit created pursuant to section 620.1039, the small business 46 incubator tax credit created pursuant to section 620.495, the guarantee fee tax credit created 47 pursuant to section 135.766, and the new generation cooperative tax credit created pursuant to 48 sections 32.105 to 32.125; 49 (7) "Environmental tax credits", the charcoal producer tax credit created pursuant to 50 section 135.313, the wood energy tax credit created pursuant to sections 135.300 to 135.311, 51 and the alternative fuel stations tax credit created pursuant to section 135.710; 52 (8) "Financial and insurance tax credits", the bank franchise tax credit created 53 pursuant to section 148.030, the bank tax credit for S corporations created pursuant to section 54 143.471, the exam fee tax credit created pursuant to section 148.400, the health insurance 55 pool tax credit created pursuant to section 376.975, the life and health insurance guaranty 56 association tax credit created pursuant to section 376.745, the property and casualty guaranty 57 association tax credit created pursuant to section 375.774, and the self-employed health 58 insurance tax credit created pursuant to section 143.119; 59 (9) "Housing tax credits", the neighborhood preservation tax credit created pursuant 60 to sections 135.475 to 135.487, the low-income housing tax credit created pursuant to 61 sections 135.350 to 135.363, and the affordable housing tax credit created pursuant to 62 sections 32.105 to 32.125; HB 1774 5
63 (10) "Recipient", the individual or entity who both: 64 (a) Is the original applicant for a tax credit; and 65 (b) Who directly receives a tax credit or the right to transfer a tax credit under a tax 66 credit program, regardless as to whether the tax credit has been used or redeemed; a recipient 67 shall not include the transferee of a transferable tax credit; 68 (11) "Redevelopment tax credits", the historic preservation tax credit created pursuant 69 to sections 253.545 to 253.559, the brownfield redevelopment program tax credit created 70 pursuant to sections 447.700 to 447.718, the community development corporations tax credit 71 created pursuant to sections 135.400 to 135.430, the infrastructure tax credit created pursuant 72 to subsection 6 of section 100.286, the bond guarantee tax credit created pursuant to section 73 100.297, the disabled access tax credit created pursuant to section 135.490, the new markets 74 tax credit created pursuant to section 135.680, and the distressed areas land assemblage tax 75 credit created pursuant to section 99.1205; 76 (12) "Tax credit program", any of the tax credit programs included in the definitions 77 of agricultural tax credits, business recruitment tax credits, community development tax 78 credits, domestic and social tax credits, entrepreneurial tax credits, environmental tax credits, 79 housing tax credits, redevelopment tax credits, and training and educational tax credits; 80 (13) "Training and educational tax credits", the Missouri [works] one start new jobs 81 tax credit and Missouri [works] one start retained jobs credit created pursuant to sections 82 620.800 to 620.809. ✔
Statutes affected: