HOUSE BILL NO. 2639 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE HINMAN.
6033H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To amend chapter 135, RSMo, by adding thereto one new section relating to tax credits for certain contributions to law enforcement foundations.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 135, RSMo, is amended by adding thereto one new section, to be 2 known as section 135.590, to read as follows: 135.590. 1. This section shall be known and may be cited as the "Law 2 Enforcement Strategic Support Act" or the "LESS Crime Act". 3 2. As used in this section, the following terms mean: 4 (1) "Contribution", a donation of cash, stock, bonds, or other marketable 5 securities; 6 (2) "Department", the department of revenue; 7 (3) "Law enforcement foundation", any domestic nonprofit corporation with the 8 sole function of supporting one local law enforcement unit through a formal relationship 9 recognized by such local law enforcement unit and that maintains nonprofit status 10 under Section 501(c)(3) of the Internal Revenue Code, as amended; 11 (4) "Local law enforcement unit", any agency office, or department of a county, 12 municipality, or consolidated government of this state whose primary functions include 13 the enforcement of criminal or traffic laws, preservation of public order, protection of 14 life and property, or the prevention, detection, or investigation of crime. Such term 15 shall include any sheriff's office in this state. Such term shall not include any agency, 16 office, or department conducting similar functions for any court, state board, state 17 authority, or other state law enforcement division or department;
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 2639 2
18 (5) "Qualified contribution", the preapproved contribution of funds by a 19 taxpayer to a qualified law enforcement foundation under this section; 20 (6) "Qualified expenditures", expenditures made by a qualified law enforcement 21 foundation: 22 (a) a. For salary supplements paid no more than twice annually or training 23 provided directly to law enforcement officers employed by the local law enforcement 24 unit affiliated with such qualified law enforcement foundation; or 25 b. For the purchase, lease, maintenance, or improvement of equipment to be 26 used by such officers; or 27 (b) To cover any costs incurred by the local law enforcement unit for the 28 operation of an emergency response team that combines law enforcement officers and 29 behavioral health specialists, provided that such costs shall not include salaries or other 30 regular compensation; 31 (7) "Qualified law enforcement foundation", any law enforcement foundation 32 that has been designated as the sole local law enforcement foundation for a single local 33 law enforcement unit and has been certified and listed as provided under this section; 34 (8) "Tax credit", a credit against the tax otherwise due under chapter 143, 35 excluding withholding tax imposed under sections 143.191 to 143.265; 36 (9) "Taxpayer", any individual, firm, partnership, partner in a firm or 37 partnership, corporation, shareholder in an S corporation, or member of a limited 38 liability company subject to the state income tax imposed under chapter 143, excluding 39 the withholding tax imposed under sections 143.191 to 143.265. 40 3. For all tax years beginning on or after January 1, 2027, a taxpayer shall be 41 allowed to claim a tax credit against the taxpayer's state tax liability for qualified 42 contributions made by the taxpayer as follows: 43 (1) In the case of a taxpayer with a filing status of single, the actual amount of 44 qualified contributions made or five thousand dollars per tax year, whichever is less; 45 (2) In the case of a taxpayer with a filing status of married filing combined, the 46 actual amount of qualified contributions made or ten thousand dollars per tax year, 47 whichever is less; 48 (3) In the case of an individual taxpayer who is a member of a limited liability 49 company duly formed under state law, a shareholder of an S corporation, or a partner 50 in a partnership, the actual amount of qualified contributions it made or ten thousand 51 dollars per tax year, whichever is less, provided, however that tax credits under this 52 subdivision shall only be allowed for the portion of the income on which such tax was 53 actually paid by such member, shareholder, or partner; or HB 2639 3
54 (4) A corporation or other entity not subject to subdivisions (1) to (3) of this 55 subsection, the actual amount of qualified contributions made or seventy-five percent of 56 such corporation's or other entity's income tax liability, whichever is less. 57 4. The cumulative amount of tax credits allowed to all taxpayers under this 58 section shall not exceed seventy-five million dollars per calendar year. If the amount of 59 tax credits claimed in a tax year under this section exceeds seventy-five million dollars, 60 tax credits shall be allowed based on the order in which they are claimed. Each 61 qualified law enforcement foundation shall be limited to accepting three million dollars 62 per calendar year of qualified contributions made under the provisions of this section. 63 5. Nothing in this section shall be construed to limit the ability of a local law 64 enforcement unit to receive gifts, grants, and other benefits from any source allowed by 65 law, provided, however, that no local law enforcement unit shall accept or receive more 66 than three million dollars per calendar year in qualified contributions under this 67 section. 68 6. (1) No credit shall be allowed under this section to a taxpayer for any amount 69 of qualified contributions that were utilized as deductions or exemptions from taxable 70 income. 71 (2) In no event shall the total amount of a tax credit redeemed under this section 72 for a tax year exceed the taxpayer's income tax liability for such tax year. Tax credits 73 issued under the provisions of this section shall not be refundable. Any unused tax 74 credit under this section may be carried forward to apply against the succeeding five tax 75 years' tax liability. No tax credit claimed under this section shall be allowed the 76 taxpayer against prior years' tax liability. 77 (3) No tax credit claimed under this section shall be assigned, transferred, sold, 78 or otherwise conveyed. 79 7. The department shall establish a page on the department's website for the 80 purpose of implementing this section. Such page shall contain, at a minimum: 81 (1) The application and requirements to be certified as a qualified law 82 enforcement foundation; 83 (2) The current list of all qualified law enforcement foundations and their 84 affiliate law enforcement units; 85 (3) The total amount of tax credits remaining and available for preapproval for 86 each year; 87 (4) A web-based method for taxpayers seeking the preapproval status for 88 qualified contributions; and HB 2639 4
89 (5) The information received by the department from each qualified law 90 enforcement foundation under subdivision (1) of subsection 11 of this section except for 91 subparagraph d. of paragraph (b) of subdivision (1) of subsection 11 of this section. 92 8. Any valid law enforcement foundation seeking approval as a qualified law 93 enforcement foundation shall be certified by the department following the department's 94 receipt of a properly completed application and after the department has confirmed that 95 a single local law enforcement unit has validly designated the applicant as its sole law 96 enforcement foundation. Such application shall be prescribed by the department and 97 shall include an agreement by the applicant to fully comply with the terms and 98 conditions of this section. 99 9. (1) Prior to making a contribution to any qualified law enforcement 100 foundation, the taxpayer shall electronically notify the department, in a manner 101 specified by the department, of the total amount of the contribution that such taxpayer 102 intends to make to such qualified law enforcement foundation. 103 (2) Within thirty days of the date the request for preapproval of a contribution 104 was received, the department shall preapprove, deny, or prorate a requested 105 contribution amount on a first-come, first-served basis and shall provide notice to 106 such taxpayer and the qualified law enforcement foundation of such preapproval, 107 denial, or proration. Such notices shall not require any signed release or notarized 108 approval by the taxpayer. The preapproval of contributions by the department shall be 109 based solely on the availability of tax credits subject to the limits established under this 110 section. 111 (3) Within sixty days of the date the preapproval notice was issued by the 112 department, the taxpayer shall contribute the preapproved contribution amount to the 113 qualified law enforcement foundation or such preapproved contribution amount shall 114 expire. The department shall not include such expired amounts in determining the 115 remaining amount of tax credits available under the aggregate limit for the respective 116 calendar year. 117 10. (1) Each qualified law enforcement foundation shall issue to each taxpayer 118 making a qualified contribution a letter of confirmation of the qualified contribution, 119 which shall include the taxpayer's name, address, tax identification number, the amount 120 of the qualified contribution, the date of the qualified contribution, and the total amount 121 of the credit allowed to the taxpayer. 122 (2) In order for a taxpayer to claim the tax credit allowed under this section, all 123 such applicable letters as provided under this subsection shall be attached to the 124 taxpayer's income tax return. When the taxpayer files an electronic return, such 125 confirmation shall only be required to be electronically attached to the income tax HB 2639 5
126 return if the Internal Revenue Service allows such attachments to be affixed and 127 transmitted to the department. In any such event, the taxpayer shall maintain such 128 confirmation and shall provide such confirmation to the department upon request. 129 (3) The department shall allow tax credits for any preapproved qualified 130 contributions made to a local law enforcement foundation at the time the contributions 131 were made if such foundation was a qualified law enforcement foundation at the time of 132 the department's preapproval of the contributions and the taxpayer has otherwise 133 complied with this section. 134 11. (1) Each qualified law enforcement foundation shall annually submit to the 135 department: 136 (a) A complete copy of its Internal Revenue Service Form 990 and other 137 applicable attachments, or for any qualified law enforcement foundation that is not 138 required by federal law to file a Form 990, such foundation shall submit to the 139 department equivalent information on a form prescribed by the department; and 140 (b) A report detailing the contributions received during the calendar year under 141 this section on a date determined by, and on a form provided by, the department which 142 shall include: 143 a. The total number and dollar value of individual contributions and tax credits 144 approved. Individual contributions shall include contributions made by taxpayers filing 145 income tax returns as a single individual and taxpayers filing income tax returns as 146 married combined; 147 b. The total number and dollar value of corporate contributions and tax credits 148 approved; 149 c. The total number and dollar value of all qualified expenditures made; and 150 d. A list of taxpayer contributors, including the dollar value of each contribution 151 and the dollar value of each approved tax credit. 152 (2) Notwithstanding any provision of section 105.1500 to the contrary, any 153 requirement to provide information, documents, or records under this section, and any 154 requirement established by the department to provide information, documents, or 155 records for the purpose of administering and enforcing this section, shall be exempt 156 from section 105.1500. 157 (3) Except for the information published in accordance with subsections 7 and 158 12 of this section, all information or reports relative to this section that were provided by 159 qualified law enforcement foundations to the department shall be confidential taxpayer 160 information as provided under section 32.057 and any other confidential provision of 161 state tax law, whether such information relates to the taxpayer or the qualified law 162 enforcement foundation. HB 2639 6
163 12. Each qualified law enforcement foundation shall publish on its website a 164 copy of its affiliated local law enforcement unit's prior year's annual budget containing 165 the total amount of funds received from its local governing body. If a qualified law 166 enforcement foundation does not maintain a public website, such information shall be 167 otherwise made available by the qualified law enforcement foundation to the public 168 upon request. 169 13. (1) A taxpayer shall not be allowed to designate or direct the taxpayer's 170 qualified contributions to any particular purpose or for the direct benefit of any 171 particular individual. 172 (2) A taxpayer that operates, owns, is affiliated with, or is a subsidiary of an 173 association, organization, or other entity that contracts directly with a qualified law 174 enforcement foundation or the local law enforcement unit that is affiliated with a 175 qualified law enforcement foundation shall not be eligible for tax credits allowed under 176 this section for contributions made to such qualified law enforcement foundation. 177 (3) In soliciting contributions, no person shall represent or direct that, in 178 exchange for making qualified contributions to any qualified law enforcement 179 foundation, a taxpayer shall receive any direct or particular benefit. The status as a 180 qualified law enforcement foundation shall be revoked for any law enforcement 181 foundation determined to be in violation of this subdivision and shall not be renewed for 182 at least two years. 183 14. (1) Qualified contributions shall only be used for qualified expenditures. 184 Each qualified law enforcement foundation shall maintain accurate and current records 185 of all expenditures of qualified contributions and provide such records to the 186 department upon request. 187 (2) A qualified law enforcement foundation that fails to comply with any of the 188 requirements under this section shall be given written notice by the department of such 189 failure to comply by certified mail and shall have ninety days from the date of the 190 receipt of such notice to correct all deficiencies. 191 (3) Upon failure to correct all deficiencies within ninety days, the department 192 shall revoke the law enforcement foundation's status as a qualified law enforcement 193 foundation and such entity shall be immediately removed from the department's list of 194 qualified law enforcement foundations. All applications for preapproval of tax credits 195 for contributions to such law enforcement foundation under this section made on or 196 after the date of such removal shall be rejected. 197 (4) Each law enforcement foundation that has had its status revoked and has 198 been removed from the department's list under this section shall immediately cease all 199 expenditures of funds received relative to this section, and shall transfer all of such HB 2639 7
200 funds that are not yet expended to a properly operating qualified law enforcement 201 foundation within thirty calendar days of its removal from the department's list of 202 qualified law enforcement foundations. 203 15. The department of revenue shall promulgate all necessary rules and 204 regulations for the administration of this section including, but not limited to, rules 205 relating to the verification of a taxpayer's qualified amount. Any rule or portion of a 206 rule, as that term is defined in section 536.010, that is created under the authority 207 delegated in this section shall become effective only if it complies with and is subject to 208 all of the provisions of chapter 536 and, if applicable, section 536.028. This section and 209 chapter 536 are nonseverable and if any of the powers vested with the general assembly 210 pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul 211 a rule are subsequently held unconstitutional, then the grant of rulemaking authority 212 and any rule proposed or adopted after August 28, 2026, shall be invalid and void. 213 16. Under section 23.253 of the Missouri sunset act: 214 (1) The provisions of the new program authorized under this section shall sunset 215 six years after the effective date of this section unless reauthorized by an act of the 216 general assembly; 217 (2) This section shall terminate on September first of the calendar year 218 immediately following the calendar year in which the program authorized under this 219 section is sunset; and 220 (3) Nothing in this subsection shall prevent a taxpayer from claiming a tax credit 221 properly issued before this program was sunset in a tax year after the program is sunset. ✔
Statutes affected: