The bill proposes the addition of a new section, 135.790, to chapter 135 of the Revised Statutes of Missouri, establishing a tax credit for individuals who adopt pets from animal shelters. Starting from January 1, 2027, taxpayers will be eligible to claim a tax credit equal to the total amount paid for a qualified pet adoption, which includes adoption fees and associated costs, up to a maximum of $125. However, taxpayers are limited to claiming this credit for a maximum of two adoptions per tax year. Animal shelters are required to provide receipts for adoptions, which must be submitted with the tax credit claims. Additionally, the bill stipulates that the total amount of tax credits issued under this section cannot exceed $500,000 per calendar year. If claims exceed this limit, credits will be allocated based on the order they are received. The tax credits are refundable but cannot be transferred or carried forward to subsequent tax years. Furthermore, taxpayers may forfeit their credits if the adopted animal is not properly cared for, and the Department of Revenue is authorized to verify adoption statuses and investigate any reports of abuse or neglect. The provisions of this section will sunset six years after its effective date unless reauthorized by the General Assembly.

Statutes affected:
Introduced (4371H.01): 135.790