The proposed bill introduces the "First-Time Business Owner Tax Deduction Act" by amending chapter 143 of the Revised Statutes of Missouri. It establishes a new framework for first-time business owners to create savings accounts specifically for business-related expenses. Starting January 1, 2027, taxpayers will be allowed a deduction of 50% of their contributions to these savings accounts, with a maximum deduction not exceeding their Missouri adjusted gross income. The bill also exempts the assets and income from these accounts from state taxation, provided they are used for eligible business expenses as defined in the bill. Additionally, the bill outlines the requirements for account holders, including contribution limits and the designation of qualified beneficiaries. It specifies that funds can be used for various business start-up expenses and sets penalties for improper withdrawals. The Department of Revenue is tasked with creating necessary regulations and forms for reporting, while financial institutions are not held liable for tracking account usage or ensuring eligibility for tax deductions. The program is set to sunset six years after its implementation unless reauthorized by the General Assembly.

Statutes affected:
Introduced (5745H.01): 143.1140, 143.1141, 143.1143, 143.1144, 143.1145, 143.1146, 143.1147