HOUSE BILL NO. 68 100TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE MCCREERY. 5897H.01I DANA RADEMAN MILLER, Chief Clerk
AN ACT To repeal section 143.121, RSMo, and to enact in lieu thereof ten new sections relating to leave from employment, with a referendum clause.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 143.121, RSMo, is repealed and ten new sections enacted in lieu 2 thereof, to be known as sections 143.121, 285.400, 285.405, 285.410, 285.415, 285.420, 3 285.425, 285.430, 285.435, and 285.440, to read as follows: 143.121. 1. The Missouri adjusted gross income of a resident individual shall be the 2 taxpayer's federal adjusted gross income subject to the modifications in this section. 3 2. There shall be added to the taxpayer's federal adjusted gross income: 4 (1) The amount of any federal income tax refund received for a prior year which resulted 5 in a Missouri income tax benefit. The amount added pursuant to this subdivision shall not 6 include any amount of a federal income tax refund attributable to a tax credit reducing a 7 taxpayer's federal tax liability pursuant to Public Law 116-136, enacted by the 116th United 8 States Congress, for the tax year beginning on or after January 1, 2020, and ending on or before 9 December 31, 2020, and deducted from Missouri adjusted gross income pursuant to section 10 143.171; 11 (2) Interest on certain governmental obligations excluded from federal gross income by 12 26 U.S.C. Section 103 [of the Internal Revenue Code], as amended. The previous sentence shall 13 not apply to interest on obligations of the state of Missouri or any of its political subdivisions or 14 authorities and shall not apply to the interest described in subdivision (1) of subsection 3 of this
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 68 2
15 section. The amount added pursuant to this subdivision shall be reduced by the amounts 16 applicable to such interest that would have been deductible in computing the taxable income of 17 the taxpayer except only for the application of 26 U.S.C. Section 265 [of the Internal Revenue 18 Code], as amended. The reduction shall only be made if it is at least five hundred dollars; 19 (3) The amount of any deduction that is included in the computation of federal taxable 20 income pursuant to 26 U.S.C. Section 168 [of the Internal Revenue Code] , as amended by the 21 Job Creation and Worker Assistance Act of 2002, to the extent the amount deducted relates to 22 property purchased on or after July 1, 2002, but before July 1, 2003, and to the extent the amount 23 deducted exceeds the amount that would have been deductible pursuant to 26 U.S.C. Section 168 24 [of the Internal Revenue Code of 1986] as in effect on January 1, 2002; 25 (4) The amount of any deduction that is included in the computation of federal taxable 26 income for net operating loss allowed by 26 U.S.C. Section 172 [of the Internal Revenue Code 27 of 1986], as amended, other than the deduction allowed by 26 U.S.C. Section 172(b)(1)(G) and 28 26 U.S.C. Section 172(i) [of the Internal Revenue Code of 1986], as amended, for a net operating 29 loss the taxpayer claims in the tax year in which the net operating loss occurred or carries 30 forward for a period of more than twenty years and carries backward for more than two years. 31 Any amount of net operating loss taken against federal taxable income but disallowed for 32 Missouri income tax purposes pursuant to this subdivision after June 18, 2002, may be carried 33 forward and taken against any income on the Missouri income tax return for a period of not more 34 than twenty years from the year of the initial loss; and 35 (5) For nonresident individuals in all taxable years ending on or after December 31, 36 2006, the amount of any property taxes paid to another state or a political subdivision of another 37 state for which a deduction was allowed on such nonresident's federal return in the taxable year 38 unless such state, political subdivision of a state, or the District of Columbia allows a subtraction 39 from income for property taxes paid to this state for purposes of calculating income for the 40 income tax for such state, political subdivision of a state, or the District of Columbia; 41 (6) For all tax years beginning on or after January 1, 2018, any interest expense paid or 42 accrued in a previous taxable year, but allowed as a deduction under 26 U.S.C. Section 163, as 43 amended, in the current taxable year by reason of the carryforward of disallowed business 44 interest provisions of 26 U.S.C. Section 163(j), as amended. For the purposes of this 45 subdivision, an interest expense is considered paid or accrued only in the first taxable year the 46 deduction would have been allowable under 26 U.S.C. Section 163, as amended, if the limitation 47 under 26 U.S.C. Section 163(j), as amended, did not exist. 48 3. There shall be subtracted from the taxpayer's federal adjusted gross income the 49 following amounts to the extent included in federal adjusted gross income: HB 68 3
50 (1) Interest received on deposits held at a federal reserve bank or interest or dividends 51 on obligations of the United States and its territories and possessions or of any authority, 52 commission or instrumentality of the United States to the extent exempt from Missouri income 53 taxes pursuant to the laws of the United States. The amount subtracted pursuant to this 54 subdivision shall be reduced by any interest on indebtedness incurred to carry the described 55 obligations or securities and by any expenses incurred in the production of interest or dividend 56 income described in this subdivision. The reduction in the previous sentence shall only apply 57 to the extent that such expenses including amortizable bond premiums are deducted in 58 determining the taxpayer's federal adjusted gross income or included in the taxpayer's Missouri 59 itemized deduction. The reduction shall only be made if the expenses total at least five hundred 60 dollars; 61 (2) The portion of any gain, from the sale or other disposition of property having a higher 62 adjusted basis to the taxpayer for Missouri income tax purposes than for federal income tax 63 purposes on December 31, 1972, that does not exceed such difference in basis. If a gain is 64 considered a long-term capital gain for federal income tax purposes, the modification shall be 65 limited to one-half of such portion of the gain; 66 (3) The amount necessary to prevent the taxation pursuant to this chapter of any annuity 67 or other amount of income or gain which was properly included in income or gain and was taxed 68 pursuant to the laws of Missouri for a taxable year prior to January 1, 1973, to the taxpayer, or 69 to a decedent by reason of whose death the taxpayer acquired the right to receive the income or 70 gain, or to a trust or estate from which the taxpayer received the income or gain; 71 (4) Accumulation distributions received by a taxpayer as a beneficiary of a trust to the 72 extent that the same are included in federal adjusted gross income; 73 (5) The amount of any state income tax refund for a prior year which was included in the 74 federal adjusted gross income; 75 (6) The portion of capital gain specified in section 135.357 that would otherwise be 76 included in federal adjusted gross income; 77 (7) The amount that would have been deducted in the computation of federal taxable 78 income pursuant to 26 U.S.C. Section 168 of the Internal Revenue Code as in effect on January 79 1, 2002, to the extent that amount relates to property purchased on or after July 1, 2002, but 80 before July 1, 2003, and to the extent that amount exceeds the amount actually deducted pursuant 81 to 26 U.S.C. Section 168 of the Internal Revenue Code as amended by the Job Creation and 82 Worker Assistance Act of 2002; 83 (8) For all tax years beginning on or after January 1, 2005, the amount of any income 84 received for military service while the taxpayer serves in a combat zone which is included in 85 federal adjusted gross income and not otherwise excluded therefrom. As used in this section, HB 68 4
86 "combat zone" means any area which the President of the United States by Executive Order 87 designates as an area in which Armed Forces of the United States are or have engaged in combat. 88 Service is performed in a combat zone only if performed on or after the date designated by the 89 President by Executive Order as the date of the commencing of combat activities in such zone, 90 and on or before the date designated by the President by Executive Order as the date of the 91 termination of combatant activities in such zone; 92 (9) For all tax years ending on or after July 1, 2002, with respect to qualified property 93 that is sold or otherwise disposed of during a taxable year by a taxpayer and for which an 94 additional modification was made under subdivision (3) of subsection 2 of this section, the 95 amount by which additional modification made under subdivision (3) of subsection 2 of this 96 section on qualified property has not been recovered through the additional subtractions provided 97 in subdivision (7) of this subsection; 98 (10) The amount contributed to the Missouri earned family and medical leave fund 99 established under section 285.435; 100 (11) For all tax years beginning on or after January 1, 2014, the amount of any income 101 received as payment from any program which provides compensation to agricultural producers 102 who have suffered a loss as the result of a disaster or emergency, including the: 103 (a) Livestock Forage Disaster Program; 104 (b) Livestock Indemnity Program; 105 (c) Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish; 106 (d) Emergency Conservation Program; 107 (e) Noninsured Crop Disaster Assistance Program; 108 (f) Pasture, Rangeland, Forage Pilot Insurance Program; 109 (g) Annual Forage Pilot Program; 110 (h) Livestock Risk Protection Insurance Plan; and 111 (i) Livestock Gross Margin Insurance Plan; and 112 [(11)] (12) For all tax years beginning on or after January 1, 2018, any interest expense 113 paid or accrued in the current taxable year, but not deducted as a result of the limitation imposed 114 under 26 U.S.C. Section 163(j), as amended. For the purposes of this subdivision, an interest 115 expense is considered paid or accrued only in the first taxable year the deduction would have 116 been allowable under 26 U.S.C. Section 163, as amended, if the limitation under 26 U.S.C. 117 Section 163(j), as amended, did not exist. 118 4. There shall be added to or subtracted from the taxpayer's federal adjusted gross 119 income the taxpayer's share of the Missouri fiduciary adjustment provided in section 143.351. 120 5. There shall be added to or subtracted from the taxpayer's federal adjusted gross 121 income the modifications provided in section 143.411. HB 68 5
122 6. In addition to the modifications to a taxpayer's federal adjusted gross income in this 123 section, to calculate Missouri adjusted gross income there shall be subtracted from the taxpayer's 124 federal adjusted gross income any gain recognized pursuant to 26 U.S.C. Section 1033 [of the 125 Internal Revenue Code of 1986], as amended, arising from compulsory or involuntary conversion 126 of property as a result of condemnation or the imminence thereof. 127 7. (1) As used in this subsection, "qualified health insurance premium" means the 128 amount paid during the tax year by such taxpayer for any insurance policy primarily providing 129 health care coverage for the taxpayer, the taxpayer's spouse, or the taxpayer's dependents. 130 (2) In addition to the subtractions in subsection 3 of this section, one hundred percent 131 of the amount of qualified health insurance premiums shall be subtracted from the taxpayer's 132 federal adjusted gross income to the extent the amount paid for such premiums is included in 133 federal taxable income. The taxpayer shall provide the department of revenue with proof of the 134 amount of qualified health insurance premiums paid. 135 8. (1) Beginning January 1, 2014, in addition to the subtractions provided in this section, 136 one hundred percent of the cost incurred by a taxpayer for a home energy audit conducted by an 137 entity certified by the department of natural resources under section 640.153 or the 138 implementation of any energy efficiency recommendations made in such an audit shall be 139 subtracted from the taxpayer's federal adjusted gross income to the extent the amount paid for 140 any such activity is included in federal taxable income. The taxpayer shall provide the 141 department of revenue with a summary of any recommendations made in a qualified home 142 energy audit, the name and certification number of the qualified home energy auditor who 143 conducted the audit, and proof of the amount paid for any activities under this subsection for 144 which a deduction is claimed. The taxpayer shall also provide a copy of the summary of any 145 recommendations made in a qualified home energy audit to the department of natural resources. 146 (2) At no time shall a deduction claimed under this subsection by an individual taxpayer 147 or taxpayers filing combined returns exceed one thousand dollars per year for individual 148 taxpayers or cumulatively exceed two thousand dollars per year for taxpayers filing combined 149 returns. 150 (3) Any deduction claimed under this subsection shall be claimed for the tax year in 151 which the qualified home energy audit was conducted or in which the implementation of the 152 energy efficiency recommendations occurred. If implementation of the energy efficiency 153 recommendations occurred during more than one year, the deduction may be claimed in more 154 than one year, subject to the limitations provided under subdivision (2) of this subsection. 155 (4) A deduction shall not be claimed for any otherwise eligible activity under this 156 subsection if such activity qualified for and received any rebate or other incentive through a
Statutes affected: