HB 991 Exempts federal economic impact payments from state income tax

Current Bill Summary

- Prepared by Senate Research -


SCS/HB 991 - Current law allows a taxpayer to deduct from his or her Missouri adjusted gross income a portion of his or her federal income taxes paid, exempting federal income tax credits received for the 2020 tax year under the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act when determining the amount of federal income tax liability allowable as a deduction. This act also exempts federal income tax credits received for the 2020 tax year under the supplemental CARES Act, as well as any other federal COVID-19-related income tax credits. (Section 143.171)

Current law also requires taxpayers who itemize deductions to include any federal income tax refund amounts in his or her Missouri adjusted gross income if such taxpayer previously claimed a deduction for federal income tax liability on his or her Missouri income tax return. This act provides that any amount of any federal income tax refund attributable to COVID-19-related tax credits in the supplemental CARES ACT, as well as any other federal COVID-19-related income tax credits, shall not be included in the taxpayer's Missouri adjusted gross income. (Section 143.121.2)

These provisions are identical to provisions contained in CCS/HCS/SS/SCS/SBs 153 & 97 (2021), CCS/HCS/SB 365 (2021), and are substantially similar to SCS/SBs 405, 522, & 428 (2021) and HB 1039 (2021), and to provisions contained in HCS/HB 555 (2021), HB 913 (2021), HCS/SB 676 (2020), HCS/SS#2/SB 704 (2020), and HCS/SS/SCS/SB 570 (2020).

Additionally, for the 2020 and 2021 tax years, this act authorizes a taxpayer to deduct 100% of the amount of unemployment benefits in excess of $10,200 received during the 2020 tax year. The deduction authorized by this act shall only be taken for one tax year. (Section 143.121.7)

This provision is identical to SCS/SB 358 (2021).

This act contains an emergency clause.

JOSH NORBERG


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