SB 342 - This act establishes the Missouri Earned Income Tax Credit Act.
For all tax years beginning on or after January 1, 2019, this act creates a tax credit in the amount of twenty percent of the amount of a taxpayer's federal earned income tax credit. The tax credit shall be applied to a taxpayer's Missouri income tax liability after all reductions for other credits for which the taxpayer is eligible have been applied. If the tax credit exceeds the amount of the taxpayer's tax liability, it shall be considered an overpayment of the income tax and shall be refunded to the taxpayer.
The Department of Revenue shall determine whether a taxpayer who did not apply for the tax credit established by this act is eligible and shall notify such taxpayer of his or her potential eligibility.
The Department shall prepare an annual report regarding the tax credit established by this act containing certain information as described in the act.
The Department shall contract with one or more nonprofit groups to provide notice of the tax credit established by this act to eligible taxpayers.
This act is substantially similar to SB 197 (2017), HCS/HB 109 (2017), and to a provision contained in HCS/HB 1605 (2016), and is similar to HB 2154 (2016), SB 1018 (2016), SB 40 (2015), SB 687 (2014), HB 1120 (2014), HB 895 (2013), HB 1606 (2012), HB 581 (2011), and HB 1915 (2010).