SB 1250 - This act modifies provisions relating to the taxation of pass-through entities.NON-MISSOURI INCOME TAX CREDIT
Current law authorizes a taxpayer to claim a tax credit for income tax paid to another state on income that is also taxable in Missouri. This act provides that the calculation of the maximum allowable credit shall apply to credits claimed by S corporation shareholders. (Section 143.081)
SALT PARITY ACT
The SALT Parity Act, in current law, provides for an alternative method for the taxation of the income of pass-through entities, and provides for a compensatory tax credit against income taxes due pursuant to other methods of taxation. This act modifies the calculation of such tax by changing the subtraction of the federal business income deduction to a subtraction of the business income deduction allowed pursuant to state law.
This act also allows a member of an affected business entity to opt out of being taxed pursuant to the SALT Parity Act, as described in the act.
This act also applies the provisions of the SALT Parity Act to fiduciaries.
This act also allows a designated affected business entity representative to sign the form electing to be taxed pursuant to the alternative method of taxation. (Section 143.436)
JOSH NORBERG