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SECOND REGULAR SESSION
HOUSE BILL NO. 2216
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE RIGGS.
4074H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 135, RSMo, by adding thereto one new section relating to tax credits for
certain endowment contributions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 135, RSMo, is amended by adding thereto one new section, to be
2 known as section 135.1850, to read as follows:
135.1850. 1. This section shall be known and may be cited as the "Missouri
2 Gives T ax Credi t Act".
3 2. As used in this section, the following terms mean:
4 (1) "Business entity", a corporation, trust, estate, partnership, limited liability
5 company , or sole pr oprietorship;
6 (2) "Donor advised fund", the same meaning as such term is defined under
7 subsection (d) of Section 4966 of the Internal Revenue Code of 1986, as amended;
8 (3) "Endowment gift", an irr evocable contribution to a permanent endowment
9 fund held by a qualified community foundation;
10 (4) "Permanent endowment fund", a fund that:
11 (a) Is held by a qualified community foundation;
12 (b) Pr ovides charitable grants for the benefit of res idents of the state or charities
13 and charitable pr ojects located in the state;
14 (c) Is intended to exist in perpetuity;
15 (d) Has an annual spending rate based on the foundation spending policy , but
16 not to exceed seven perce nt; and
17 (e) Is not a donor advised fund;
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
18 (5) "Qualified community foundation", a community foundation or similar
19 publicly supported organization described under Section 170(b)(1)(A)(vi) of the Internal
20 Revenue Code of 1986, as amended, that is organized or operating in this state and that
21 substantially complies with the National Standards Accred itation Pr ogram established
22 by the Council on Foundations and overseen by the Community Foundations National
23 Standards Board, as determined by the department;
24 (6) "T ax cre dit", a cr edit against the tax otherwise due under chapter 143,
25 excluding withholding tax imposed under sections 143.191 to 143.265;
26 (7) "T axpayer", any individual or business entity subject to the state income tax
27 imposed under chapter 143.
28 3. For all tax years beginning on or after January 1, 2027, a taxpayer shall be
29 allowed to claim a tax cr edit against the taxpayer's state tax liability in an amount equal
30 to twenty-five per cent of a contribution made as an endowment gift to a permanent
31 endowment fund during the tax year .
32 4. T ax cre dits issued under the pr ovisions of this section shall not be r efundable.
33 No tax cred it claimed under this section shall be carried forward to any subsequent tax
34 year . No tax cred it claimed under this section shall be assigned, transferre d, sold, or
35 otherwise conveyed.
36 5. The cumulative amount of tax cre dits awarded to any single taxpayer per tax
37 year shall not exceed one hundr ed thousand dollars. The cumulative amount of
38 contributions to any specific qualified community foundation that ar e eligible for the tax
39 cr edits under this section in any calendar year shall not exceed thr ee million dollars.
40 6. (1) The cumulative amount of tax credi ts allowed to all taxpayers under this
41 section shall not exceed five million dollars per calendar year . If the amount of tax
42 cr edits claimed in a calendar year under this section exceeds five million dollars, tax
43 cr edits shall be allowed based on the order in which they ar e claimed.
44 (2) Of the cumulative amount available for tax cred its per calendar year to all
45 taxpayers under this subsection, twenty-five percen t shall be res erved for endowment
46 gifts that do not exceed the small-gift maximum set forth in this subdivision. The small-
47 gift maximum is twenty-five thousand dollars. For purposes of determining if a
48 donation meets the small-gift maximum, the amount of the cr edit authorization
49 certificate issued by the department under this section shall be used.
50 7. Each taxpayer claiming a tax credit under this section shall file a receip t and
51 affidavit with his or her income tax ret urn verifying the amount the taxpayer
52 contributed as an endowment gift, in the form and manner as pr escribed by the
53 department. Upon requ est by the department, each qualified community foundation
54 shall prov ide information to the department concerning the identity of each taxpayer
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55 making an endowment gift and the amount of the contribution for the purposes of this
56 section.
57 8. Notwithstanding any pro vision of section 105.1500 to the contrary , any
58 r equir ement to pr ovide information, documents, or rec ords under this section, and any
59 r equirement established by the department of r evenue to pro vide information,
60 documents, or record s for the purpose of administering and enfor cing this section,
61 shall be exempt fr om section 105.1500.
62 9. The tax cre dit authorized under this section shall constitute a domestic and
63 social tax credi t, as such term is defined under section 135.800, and shall be subject to
64 the pro visions of sections 135.800 to 135.830.
65 10. The department of r evenue shall pro mulgate all necessary rules and
66 r egulations for the administration of this section including, but not limited to, rules
67 r elating to the verification of a taxpayer's contribution amount. Any rule or portion of a
68 rule, as that term is defined in section 536.010, that is crea ted under the authority
69 delegated in this section shall become effective only if it complies with and is subject to
70 all of the pr ovisions of chapter 536 and, if applicable, section 536.028. This section and
71 chapter 536 are nonseverable and if any of the powers vested with the general assembly
72 pursuant to chapter 536 to revi ew , to delay the effective date, or to disappr ove and annul
73 a rule are subsequently held unconstitutional, then the grant of rulemaking authority
74 and any rule prop osed or adopted after August 28, 2026, shall be invalid and void.
75 1 1. Under section 23.253 of the Missouri sunset act:
76 (1) The prov isions of the new pr ogram authorized under this section shall sunset
77 six years after the effective date of this section unless reauthori zed by an act of the
78 general assembly;
79 (2) This section shall terminate on September first of the calendar year
80 immediately following the calendar year in which the prog ram authorized under this
81 section is sunset; and
82 (3) Nothing in this subsection shall prev ent a taxpayer fr om claiming a tax credit
83 pr operly issued before this pr ogram was sunset in a tax year after the prog ram is sunset.
✔
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