The proposed bill introduces a new section, 135.1685, to chapter 135 of the Revised Statutes of Missouri, establishing a tax credit known as the "Missouri No Tax on Car Loan Interest Tax Credit." This credit is aimed at individuals who purchase new passenger vehicles and incur interest on loans for these vehicles. The bill defines an "applicable passenger vehicle" and outlines the criteria for what constitutes qualified loan interest, including restrictions on the types of vehicles eligible for the credit. The tax credit is available for tax years beginning on or after January 1, 2026, and ending on December 31, 2029, with a maximum credit amount of $10,000 per taxpayer per year. Additionally, the bill specifies that the tax credit is subject to income limitations, reducing the credit amount for taxpayers with adjusted gross incomes exceeding $100,000 (or $200,000 for joint filers). It also includes provisions that the tax credits are non-refundable, cannot be carried forward to subsequent years, and cannot be assigned or transferred. The Department of Revenue is tasked with creating necessary regulations for the administration of this tax credit, which will sunset four years after its effective date unless reauthorized by the General Assembly.

Statutes affected:
Introduced (6477H.01): 135.1685