MATERNITY HOME TAX CREDIT

Current law authorizes a tax credit for contributions made to maternity homes. This act increases the amount of such credit from seventy percent of the amount of the contribution to one hundred percent of the amount of the contribution. (Section 135.600)

This provision is identical to a provision in HCS/HB 1176 (2025).

DIAPER BANK TAX CREDIT

Current law authorizes a tax credit for contributions made to diaper banks. This act modifies the definition of "diaper bank" to require such entities to be a member of a national network organization serving all fifty states through which certification demonstrates nonprofit best practices, data-driven program design, and equitable distribution. Additionally, this act increases the amount of such credit from fifty percent of the amount of the contribution to one hundred percent of the amount of the contribution.

The tax credit sunsets on December 31, 2024. This act extends the sunset until December 31, 2031. (Section 135.621)

This provision is identical to a provision in HCS/HB 1176 (2025) and is substantially similar to a provision in SCS/SB 95 (2025).

PREGNANCY RESOURCE CENTER TAX CREDIT

Current law authorizes a tax credit for contributions made to pregnancy resource centers. This act increases the amount of such credit from seventy percent of the amount of the contribution to one hundred percent of the amount of the contribution. (Section 135.630)

This provision is identical to a provision in HCS/HB 1176 (2025).

INDIVIDUAL INCOME TAX

Current law imposes a graduated income tax rate and authorizes reductions in the top rate of income tax contingent on certain state revenue collections, with an eventual top rate of 4.5%. This act provides that, for all tax years beginning on or after January 1, 2026, there shall be a flat income tax rate of either 4.7% or 4.6% on all taxable income. Beginning with the 2026 calendar year, the rate of tax may be reduced by at least 0.1%, but by no more than 1.0%, if the amount of net general revenue collections in the previous fiscal year exceeds the highest amount of such collections from any of the three previous fiscal years by at least $175 million.

The eventual rate of tax if all reductions authorized by the act and by current law are made shall be 3.4% or 3.3%. (Section 143.011)

COMBINED INCOME TAX RETURNS

For all tax years beginning on or after January 1, 2026, this act provides that there shall be one column for the calculation of total Missouri combined adjusted gross income on the Missouri income tax return for combined returns. (Section 143.031)

CORPORATE INCOME TAX

Current law imposes an income tax on the taxable income of corporations at a rate of 4%. For all tax years beginning on or after January 1, 2026, this act reduces such rate to 3.75%. (Section 143.071)

CAPITAL GAINS DEDUCTION

For all tax years beginning on or after January 1, 2025, this act authorizes an income tax deduction for one hundred percent of all income reported as a capital gain for federal income tax purposes. (Section 143.121)

This provision is identical to SB 46 (2025) and HCS/HBs 594 & 508 (2025).

INDIVIDUAL INCOME TAX STANDARD DEDUCTION

Current law provides that the Missouri standard deduction shall be equal to the federal standard deduction. For all tax years beginning on or after January 1, 2026, this act provides that the Missouri standard deduction shall be equal to the federal standard deduction plus $4,000. (Section 143.131)

EARNED INCOME TAX CREDIT

Current law authorizes an income tax credit in an amount equal to a percentage of the taxpayer's federal earned income tax credit. This act repeals such tax credit. (Section 143.177)

DEFICIENCIES DUE TO DENIED TAX CREDITS

This act provides that a taxpayer shall not be liable for penalties or interest on an income tax balance due if such taxpayer is denied part or all of a tax credit to which the taxpayer has qualified pursuant to any provision of law due to lack of available funds, and such denial causes a balance-due notice to be generated by the Department of Revenue or any other redeeming agency. Such taxpayer shall pay the balance due within sixty days or be subject to penalties and interest pursuant to current law. (Section 143.512)

This provision is identical to a provision in SS/SB 67 (2025).