The bill proposes the repeal of section 166.435 of the Revised Statutes of Missouri and enacts a new section that outlines the tax treatment of contributions to qualified tuition programs. It establishes that the assets and income from these programs, including those authorized under Section 529 of the Internal Revenue Code, will be exempt from state taxation. Additionally, it specifies that contributions made to these programs, up to $8,000 for individual taxpayers and $16,000 for married couples filing jointly, can be subtracted from Missouri adjusted gross income. Furthermore, the bill stipulates that if any contributions or earnings from these programs are distributed and not used for qualified education expenses, they must be included in the adjusted gross income of the participant or beneficiary. The provisions of this new section will apply to tax years beginning on or after January 1, 2008, with certain provisions related to sections 166.500 to 166.529 applying to tax years starting on or after January 1, 2004.

Statutes affected:
Introduced (6444H.01): 166.435