Effective - 01 Jan 2023
143.177. Missouri working family tax credit act — definitions — tax credit for percentage of federal earned income tax credit — department duties — annual report — rulemaking authority. — 1. This section shall be known and may be cited as the "Missouri Working Family Tax Credit Act".
2. For purposes of this section, the following terms shall mean:
(1) "Department", the department of revenue;
(2) "Eligible taxpayer", a resident individual with a filing status of single, head of household, widowed, or married filing combined who is subject to the tax imposed under this chapter, excluding withholding tax imposed under sections 143.191 to 143.265, and who is allowed a federal earned income tax credit under 26 U.S.C. Section 32, as amended;
(3) "Tax credit", a credit against the tax otherwise due under this chapter, excluding withholding tax imposed under sections 143.191 to 143.265.
3. (1) Beginning with the 2023 calendar year, an eligible taxpayer shall be allowed a tax credit in an amount equal to a percentage of the amount such taxpayer would receive under the federal earned income tax credit as such credit existed under 26 U.S.C. Section 32 as of January 1, 2021, as provided pursuant to subdivision (2) of this subsection. The tax credit allowed by this section shall be claimed by such taxpayer at the time such taxpayer files a return and shall be applied against the income tax liability imposed by this chapter after reduction for all other credits allowed thereon. If the amount of the credit exceeds the tax liability, the difference shall not be refunded to the taxpayer and shall not be carried forward to any subsequent tax year.
(2) Subject to the provisions of subdivision (3) of this subsection, the percentage of the federal earned income tax credit to be allowed as a tax credit pursuant to subdivision (1) of this subsection shall be ten percent, which may be increased to twenty percent subject to the provisions of subdivision (3) of this subsection. The maximum percentage that may be claimed as a tax credit pursuant to this section shall be twenty percent of the federal earned income tax credit that may be claimed by such taxpayer. Any increase in the percentage that may be claimed as a tax credit shall take effect on January first of a calendar year and such percentage shall continue in effect until the next percentage increase occurs. An increase shall only apply to tax years that begin on or after the increase takes effect.
(3) The initial percentage to be claimed as a tax credit and any increase in the percentage that may be claimed pursuant to subdivision (2) of this subsection shall only occur if the amount of net general revenue collected in the previous fiscal year exceeds the highest amount of net general revenue collected in any of the three fiscal years prior to such fiscal year by at least one hundred fifty million dollars.
4. Notwithstanding the provisions of section 32.057 to the contrary, the department shall determine whether any taxpayer filing a report or return with the department who did not apply for the credit authorized under this section may qualify for the credit and, if so, determines a taxpayer may qualify for the credit, shall notify such taxpayer of his or her potential eligibility. In making a determination of eligibility under this section, the department shall use any appropriate and available data including, but not limited to, data available from the Internal Revenue Service, the U.S. Department of Treasury, and state income tax returns from previous tax years.
5. The department shall prepare an annual report containing statistical information regarding the tax credits issued under this section for the previous tax year, including the total amount of revenue expended, the number of credits claimed, and the average value of the credits issued to taxpayers whose earned income falls within various income ranges determined by the department.
6. The director of the department may promulgate rules and regulations to administer the provisions of this section. Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after January 1, 2023, shall be invalid and void.
7. Tax credits authorized under this section shall not be subject to the requirements of sections 135.800 to 135.830.
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(L. 2021 S.B. 153 & 97)
Effective 1-01-23, see § 144.1021
Structure Missouri Revised Statutes
Title X - Taxation and Revenue
Section 143.005 - Sections 143.181 and 143.471 effective date.
Section 143.009 - Effective date.
Section 143.011 - Resident individuals — tax rates — rate reductions, when.
Section 143.021 - Tax determined by rates in section 143.011 — no tax on taxable income, when.
Section 143.031 - Combined return of husband and wife.
Section 143.051 - Part-year resident.
Section 143.061 - Fiduciaries.
Section 143.071 - Corporations — inapplicable to out-of-state businesses, when.
Section 143.081 - Credit for income tax paid to another state.
Section 143.091 - Meaning of terms.
Section 143.101 - Definitions.
Section 143.111 - Missouri taxable income.
Section 143.113 - Deduction for health insurance costs of self-employed individuals, rules.
Section 143.118 - Health care sharing ministry deduction — rulemaking authority.
Section 143.121 - Missouri adjusted gross income.
Section 143.125 - Social Security benefits income tax exemption — amount — rulemaking authority.
Section 143.131 - Missouri standard deduction, when used, amount.
Section 143.141 - Itemized deductions, when authorized, how computed.
Section 143.143 - Provisions of sections 143.131 and 143.141 effective, when.
Section 143.151 - Missouri personal exemptions.
Section 143.161 - Missouri dependency exemptions.
Section 143.171 - Federal income tax deduction, amount, corporate and individual taxpayers.
Section 143.174 - Tax deduction for compensation received as an active duty military member.
Section 143.175 - Military personnel, reserves and inactive duty training, deduction, amount.
Section 143.181 - Missouri nonresident adjusted gross income.
Section 143.201 - Information statement for employee.
Section 143.211 - Credit for tax withheld.
Section 143.221 - Employer's return and payment of tax withheld.
Section 143.251 - Employer's failure to withhold.
Section 143.261 - Compensation.
Section 143.265 - Retirement income, withholding authorized, when.
Section 143.271 - Period for computation of taxable income.
Section 143.281 - Methods of accounting.
Section 143.291 - Adjustments.
Section 143.301 - Transitional adjustments.
Section 143.311 - Missouri taxable income and tax.
Section 143.321 - Exempt associations, trusts, and organizations.
Section 143.331 - Resident estate or trust defined.
Section 143.341 - Missouri taxable income of resident estate or trust.
Section 143.351 - Fiduciary adjustment.
Section 143.361 - Credit for income tax paid to another state.
Section 143.371 - Nonresident estate or trust defined.
Section 143.381 - Missouri taxable income of nonresident estate or trust.
Section 143.401 - General treatment of partners and partnerships.
Section 143.421 - Nonresident partner — adjusted gross income from Missouri sources.
Section 143.431 - Missouri taxable income and tax.
Section 143.433 - No corporate income tax return or other document filing required, when.
Section 143.441 - Corporation defined — corporate tax inapplicable, when.
Section 143.461 - Elective division of income.
Section 143.481 - Persons required to make returns of income.
Section 143.491 - Returns by husband and wife.
Section 143.501 - Returns by fiduciary and partnership.
Section 143.511 - Time and place for filing returns and paying tax, exception.
Section 143.521 - Declarations of estimated tax.
Section 143.531 - Time for filing declaration of estimated tax.
Section 143.541 - Payments of estimated tax.
Section 143.551 - Extension of time for filing and payment.
Section 143.561 - Signing of returns and other documents.
Section 143.571 - Requirements — returns, notices, records, and statements.
Section 143.581 - Partnership returns.
Section 143.591 - Information returns.
Section 143.601 - Report of change in federal taxable income.
Section 143.611 - Examination of return.
Section 143.621 - Assessment final if no protest.
Section 143.641 - Notice of determination after protest.
Section 143.651 - Action of director of revenue final — review.
Section 143.661 - Burden of proof on taxpayer, exceptions.
Section 143.671 - Evidence of related federal determination admissible, when.
Section 143.681 - Mathematical error.
Section 143.691 - Waiver of restriction.
Section 143.701 - Assessment of tax.
Section 143.711 - Limitations on assessment.
Section 143.721 - Recovery of erroneous refund.
Section 143.731 - Interest on underpayments.
Section 143.741 - Failure to file tax returns.
Section 143.751 - Failure to pay tax.
Section 143.761 - Failure to pay estimated income tax.
Section 143.771 - Additions treated as tax.
Section 143.773 - Penalty for filing incomplete or misleading return — procedure.
Section 143.782 - Definitions.
Section 143.787 - Director's duties, forms — rules and regulations, procedure.
Section 143.801 - Limitations on credit or refund.
Section 143.811 - Interest on overpayment.
Section 143.821 - Refund claim.
Section 143.831 - Notice of director's action.
Section 143.841 - Protest of denied claim.
Section 143.851 - Timely mailing.
Section 143.861 - Collection procedures.
Section 143.871 - Income tax claim of other states.
Section 143.881 - Transferees.
Section 143.891 - Jeopardy assessments.
Section 143.901 - Bankruptcy or receivership, claims for deficiency.
Section 143.911 - Attempt to evade or defeat tax, penalty.
Section 143.921 - Failure to collect or pay over tax, penalty.
Section 143.931 - Failure to file return, supply information, pay tax, penalty.
Section 143.941 - False statements, penalty.
Section 143.946 - Prior conviction, effect of.
Section 143.951 - Limitations.
Section 143.961 - Rules and regulations.
Section 143.971 - Returns and forms.
Section 143.986 - Closing agreements.
Section 143.991 - Armed Forces relief provision — Christopher J. Bosche memorial act.
Section 143.996 - Prohibition of legislator representation.
Section 143.998 - Tax return to contain number assigned by director to school district.
Section 143.1000 - Funding — income tax refund, designating authorized amount, when — contributions.
Section 143.1004 - Tax refund may be designated to the Missouri military family relief fund.
Section 143.1006 - Childhood lead testing fund — refund donation designation.
Section 143.1016 - Organ Donor Program fund, designation of refund permitted — director's duties.
Section 143.1020 - Designation of state tax refund to general revenue — transfer of contributions.
Section 143.1029 - Soldiers Memorial Military Museum in St. Louis Fund tax refund designation.
Section 143.1032 - Missouri medal of honor fund tax refund designation.
Section 143.2100 - Definitions — report, contents — rulemaking authority.
Section 143.2110 - Income tax deduction for cargo — amount, claiming procedure.