The bill proposes the repeal of section 143.177 of the Revised Statutes of Missouri and enacts a new section known as the "Missouri Working Family Tax Credit Act." This new section establishes a tax credit for eligible taxpayers, defined as residents who qualify for the federal earned income tax credit. Starting in the 2023 calendar year, eligible taxpayers will receive a tax credit equal to a percentage of their federal earned income tax credit, initially set at ten percent, with the potential to increase to twenty percent based on specific revenue conditions. The bill also stipulates that for tax years up to December 31, 2026, any excess credit beyond the tax liability will not be refunded or carried forward, while from January 1, 2027, the credits will become refundable. Additionally, the bill mandates the Department of Revenue to assess and notify taxpayers who may qualify for the credit, even if they did not apply for it. The department is required to compile an annual report detailing the tax credits issued, including total revenue expended and the average value of credits across various income ranges. The director of the department is granted the authority to create rules for administering the provisions of this section, which must comply with existing legislative review processes. The tax credits established under this section are exempt from certain requirements outlined in sections 135.800 to 135.830.

Statutes affected:
Introduced (4974H.01): 143.177