JEFFERSON CITY — By a vote of 33-0, the Missouri Senate delivered to the governor on the last day of session a bill designed to change the laws regarding income tax deduction for job creation by small businesses. 

More specifically, House Bill 1661 clarifies the types of small businesses that can qualify for the income tax deduction for job creation by a small business.  These businesses include those that are formed as a sole proprietorship, partnership, S-corporation, C-corporation, limited liability company (LLC), limited liability partnership (LLP), or other business entity.

To qualify for the targeted tax deduction, which is eligible during the 2012, 2013 and 2014 tax years, small businesses in Missouri must have 50 or fewer employees.  In addition, the new jobs created by these small businesses must employ these workers for at least 52 weeks.

The legislation also allows certain entities to pass the tax deduction on to their partners, members or shareholders. HB 1661, which received the governor’s approval during ceremonial bill signings in Kansas City and Joplin, will take effect on Aug. 28 with the majority of legislation receiving his signature.

To see a complete list of the bills delivered to the governor, visit www.senate.mo.gov and click on the “Truly Agreed Bills” link under the “Legislation” tab.  To contact the Senate Newsroom, call (573) 751-3824 or email: newsroom@senate.mo.gov.