AMERICAN DREAM TAX CREDIT AND SAVINGS ACCOUNTS

(Section 143.1155 and 443.1010)

This act establishes the American Dream Savings Account Act. Beginning January 1, 2027, any individual may open a savings account and designate the account as an American dream savings account to be used to pay or reimburse a qualified beneficiary's eligible expenses, as defined in the act.

This act also creates an income tax deduction for taxpayers who make contributions to such savings account. The deduction shall not exceed the taxpayer's Missouri adjusted gross income for the tax year the deduction is claimed and shall not exceed $5,000 or $10,000 for married individuals filing jointly. Each taxpayer claiming the deduction shall file an affidavit with the income tax return verifying the amount of their contributions.

An account holder shall designate a beneficiary of the account no later than April 15 of the year following the tax year in which the account was opened.

The maximum amount an individual may contribute to an account in a single tax year is $5,000 for an individual or $10,000 for a couple filing a joint tax return. The maximum amount of all contributions to an account for all tax years is $30,000. An account shall not contain more than $30,000.

The title of any home purchased with moneys from an account may not transfer for at least two years, absent reasonable circumstances.

Moneys withdrawn from an account shall be subject to recapture and penalties if the moneys are used for any purpose other than those specified in the act.

No financial institution shall be required to designate an account as an American dream savings account in its contracts or systems, to track the use of moneys withdrawn from an account, or to report any information that it is not otherwise required to by law.

The income tax deduction created by this act shall sunset December 31, 2032, unless reauthorized by the General Assembly.

These provisions are substantially similar to the "First-Time Home Buyer's Tax Credit and Savings Account (HB 1796, 2018), which expired in August, 2024.

AMERICAN DREAM ACT

(Section 442.703)

The act creates the "American Dream Act." Institutional buyers, as that term is defined in the act, are prohibited from owning more than 100 single-family residential properties within Missouri. Institutional buyers are required to submit annual reports to the Secretary of State, with such information as stipulated in the act. Failure to file the required report may result in a civil penalty not exceeding $10,000 per violation.

The Attorney General is given authority to investigate and enforce compliance with this act. If, upon filing of a cause of action by the attorney general, a court finds that a single-family residential property was acquired in violation of this section, the court shall order the sale of the property within ninety days of the order. The court may additionally order such injunctive relief or any other remedy provided by law, as deemed appropriate. If an institutional buyer has been found by a court to be in violation of this act on 3 or more occasions, the court may fine the institutional buyer in an amount of $50,000 per occasion.

This provision does not apply to any entity engaged in the development or construction of residential properties or developments, or any affiliates thereof, provided the entity or affiliate is not otherwise a subsidiary or affiliate of an institutional buyer.

This act contains a severability clause.

SCOTT SVAGERA