HOUSE BILL NO. 2882 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE REUTER.
5257H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To amend chapter 135, RSMo, by adding thereto one new section relating to a tax credit for contributions to certain organizations.
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 135.588, to read as follows: 135.588. 1. As used in this section, the following terms mean: 2 (1) "Contribution", a donation of cash, stock, bonds, or other marketable 3 securities, or real property valued at the current property tax-assessed valuation of the 4 property. If a property has not been assessed or has no assessed valuation, no credit 5 shall be authorized for the donation of the property; 6 (2) "Department", the department of mental health; 7 (3) "Director", the director of the department of mental health; 8 (4) "Qualified organization", an organization or other nonprofit entity located 9 in this state that is exempt from taxation under Section 501(c)(3) of the Internal 10 Revenue Code of 1986, as amended, that provides a comprehensive array of mental 11 health services, rehabilitation, support, and assistance to veterans with mental health 12 disorders through licensed mental health professionals in compliance with Missouri 13 statutes or other alternative treatments or services determined by the department; 14 (5) "Tax credit", a credit against the tax otherwise due under chapter 143, 15 excluding withholding tax imposed under sections 143.191 to 143.265; 16 (6) "Taxpayer", any individual, firm, partner in a firm, corporation, 17 shareholder in an S corporation, or other entity doing business in this state, subject
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 2882 2
18 to the state income tax imposed under chapter 143, excluding the withholding tax 19 imposed under sections 143.191 to 143.265, who makes a contribution to a qualified 20 organization. 21 2. For all tax years beginning on or after January 1, 2027, a taxpayer shall be 22 allowed to claim a tax credit against the taxpayer's state tax liability in an amount equal 23 to seventy percent of the taxpayer's total contribution or contributions to qualified 24 organizations. 25 3. The amount of the tax credit claimed shall not exceed the amount of the 26 taxpayer's state tax liability for the tax year for which the credit is claimed, and such 27 taxpayer shall not be allowed to claim a tax credit in excess of fifty thousand dollars per 28 tax year. 29 4. Tax credits issued under the provisions of this section shall not be refundable; 30 however, any tax credit that cannot be claimed for the tax year in which the contribution 31 was made may be carried forward one succeeding tax year. No tax credit claimed under 32 this section shall be assigned, transferred, sold, or otherwise conveyed. 33 5. Except for any excess credit that is carried over under the provisions of 34 subsection 4 of this section, a taxpayer shall not be allowed to claim a tax credit unless 35 the total amount of such taxpayer's contribution or contributions to qualified 36 organizations for the tax year has a value of at least one hundred dollars. 37 6. The director shall determine, at least annually, which organizations in this 38 state may be classified as qualified organizations. The director may require an 39 organization seeking to be classified as a qualified organization to provide any 40 information that is reasonably necessary to make such a determination. The director 41 shall classify an organization as a qualified organization if such organization meets the 42 definition set forth under subsection 1 of this section and any additional requirements 43 that the department may establish by rule. 44 7. The director shall establish a procedure, in consultation with the department 45 of revenue, by which a taxpayer can determine if a organization has been classified as a 46 qualified organization. 47 8. Upon receipt and acceptance of a contribution from a taxpayer, a qualified 48 organization shall issue to the taxpayer a statement evidencing the receipt of such 49 contribution, including the monetary value of such contribution. A qualified 50 organization shall be permitted to decline a contribution from a taxpayer. 51 9. Each qualified organization shall provide information to the department of 52 revenue concerning the identity of each taxpayer making a contribution to the qualified 53 organization who is claiming a tax credit under this section and the amount of the 54 contribution. HB 2882 3
55 10. Notwithstanding any provisions of section 105.1500 to the contrary, any 56 requirement to provide information, documents, or records under this section, and any 57 requirement established by the director or the department of revenue to provide 58 information, documents, or records for the purpose of administering and enforcing this 59 section, shall be exempt from section 105.1500. 60 11. The director, in consultation with the department of revenue and the 61 Missouri veterans commission, may promulgate all necessary rules and regulations for 62 the administration of this section. Any rule or portion of a rule, as that term is defined 63 in section 536.010, that is created under the authority delegated in this section shall 64 become effective only if it complies with and is subject to all of the provisions of chapter 65 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable 66 and if any of the powers vested with the general assembly pursuant to chapter 536 to 67 review, to delay the effective date, or to disapprove and annul a rule are subsequently 68 held unconstitutional, then the grant of rulemaking authority and any rule proposed or 69 adopted after August 28, 2026, shall be invalid and void. 70 12. Under section 23.253 of the Missouri sunset act: 71 (1) The provisions of the new program authorized under this section shall sunset 72 six years after the effective date of this section unless reauthorized by an act of the 73 general assembly; 74 (2) This section shall terminate on September first of the calendar year 75 immediately following the calendar year in which the program authorized under this 76 section is sunset; and 77 (3) Nothing in this subsection shall prevent a taxpayer from claiming a tax credit 78 properly issued before this program was sunset in a tax year after the program is sunset. ✔
Statutes affected: