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SECOND REGULAR SESSION
HOUSE BILL NO. 2449
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE DA VIS.
6002H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 135, RSMo, by adding thereto one new section relating to a tax credit for
certain educational expenses.
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 135.721, to read as follows:
135.721. 1. This section shall be known and may be cited as the "Missouri
2 Par ental Choice T ax Cred it Act".
3 2. As used in this section, the following terms mean:
4 (1) "Department", the Missouri department of r evenue;
5 (2) "Eligible education expenses", in a given tax year , the following costs a
6 qualified taxpayer incurs for the educational needs of a qualified student who is enr olled
7 in and attends a qualified school:
8 (a) T uition and fees;
9 (b) T extbooks;
10 (c) Curriculum as defined under section 166.700;
11 (d) Other instructional materials including, but not limited to, computer
12 softwar e, supplemental materials, or associated online instruction;
13 (e) Fees for nationally standardized norm-r efere nced achievement tests,
14 advanced placement examinations, or any examinations rel ated to college or
1 5 university admission;
16 (f) T utoring services;
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.
17 (g) Fees for summer education pr ograms and specialized after -school education
18 pr ograms;
19 (h) Services pr ovided by a qualified school including, but not limited to,
20 individual classes and extracurricular pr ograms;
21 (i) Computer hardwar e or other technological devices that are used to help meet
22 the qualified student's educational needs; and
23 (j) Educational therapies or services fr om a licensed or accredi ted practitioner
24 or provi der including, but not limited to, licensed or accr edited paraprof essionals or
25 educational aides;
26 (3) "Public school", any public school in the state of Missouri, as such term is
27 defined under section 160.01 1, including, but not limited to, a charter school as defined
28 in section 160.400 or a public virtual school as described under section 161.670;
29 (4) "Qualified amount", for any qualified taxpayer in a given tax year , an
30 amount equal to one hundre d percen t of the total eligible education expenses incurr ed
31 by a qualified taxpayer in a given tax year per qualified student per tax year;
32 (5) "Qualified school", a home school as defined under 167.012, a family paced
33 education school or FPE school as defined under section 167.013, or any of the following
34 entities that ar e incorporated in Missouri and that do not discriminate on the basis of
35 race, color , or national origin:
36 (a) A private school as defined under section 166.700;
37 (b) A private virtual school;
38 (c) A par ochial school; or
39 (d) A parish school;
40 (6) "Qualified student", any r esident individual of this state who:
41 (a) Is pro perly listed as a dependent of the qualified taxpayer on the qualified
42 taxpayer's state income tax ret urn;
43 (b) Is the natural or adopted child of the qualified taxpayer or is an individual
44 for whom the qualified taxpayer has been court-appointed as a legal guardian or
45 custodian; and
46 (c) Is eligible to enr oll in an elementary or secondary public school in this state,
47 but who is enr olled in or attending a qualified school as a full-time student;
48 (7) "Qualified taxpayer", any r esident individual subject to the state income tax
49 imposed under chapter 143, excluding the withholding tax imposed under sections
50 143.191 to 143.265, who is not a dependent of another individual and is the biological or
51 adoptive pare nt, legal guardian, custodian, or other person with legal authority to act on
52 behalf of a qualified student;
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53 (8) "T ax cre dit", a cr edit against the tax otherwise due under chapter 143,
54 excluding withholding tax imposed under sections 143.191 to 143.265.
55 3. The following costs a qualified taxpayer incurs for the educational needs of a
56 qualified student shall not be deemed eligible education expenses under this section:
57 (1) Paper;
58 (2) Pens;
59 (3) Pencils;
60 (4) Markers;
61 (5) Erasers;
62 (6) Notebooks;
63 (7) Other similar consumable education supplies; or
64 (8) Costs incurr ed as a res ult of a qualified student's participation in academic,
65 athletic, social, or extracurricular activities prov ided or sponsored by:
66 (a) A public school as defined in section 160.01 1;
67 (b) A charter school as defined in section 160.400; or
68 (c) A public virtual school as described in section 161.670.
69 4. For all tax years beginning on or after January 1, 2027, a qualified taxpayer
70 shall be allowed to claim a tax cred it against the qualified taxpayer's state tax liability
71 for a qualified student's eligible education expenses. The amount of each tax cre dit shall
72 not exceed the lesser of:
73 (1) The qualified taxpayer's qualified amount; or
74 (2) The state adequacy target, as defined under section 163.01 1.
75 5. If a qualified student was enr olled in a public school for part of a tax year , the
76 amount of the tax cred it allowed under this section shall be pr orated, based upon that
77 pr oportion of which the total number of school days the qualified student was enr olled
78 in or attending the qualified school for the tax year the credit is claimed. The
79 department may pr omulgate rules governing the calculation and pr oration under this
80 subsection.
81 6. A qualified taxpayer may claim a tax cred it under this section at the time such
82 qualified taxpayer files a retu rn. The qualified taxpayer shall submit with the qualified
83 taxpayer's retu rn an itemized list of eligible education expenses incurr ed, identification
84 or other legal documents relat ing to a qualified student's dependency status, and any
85 other information requi red by the department, on a form to be developed by the
86 department. The qualified taxpayer shall ret ain all r eceipts of eligible education
87 expenses as pr oof of the amounts paid each tax year the cr edit is claimed and shall
88 submit them to the department upon requ est.
89 7. Qualified taxpayers claiming the credi t shall:
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90 (1) Claim the credit for only eligible education expenses as defined under this
91 section to pr ovide an education for a qualified student;
92 (2) Ensure no other person is claiming a cred it for the qualified student;
93 (3) Not claim the credi t for a qualified student who enrol ls as a full-time student
94 in a public school as defined under this section; and
95 (4) Comply with pro visions of this section and the rules and requi rem ents
96 established by the department for the administration of the tax credi t.
97 8. A qualified taxpayer shall not be eligible to receive a tax cred it under this
98 section if such qualified taxpayer is a participant in the Missouri empowerment
99 scholarship accounts pr ogram under sections 135.712 to 135.719 and sections 166.700 to
100 166.720 for the same qualified student. Befor e issuing the tax credi t under this section,
101 the department shall verify with the state tr easurer that the taxpayer is not a participant
102 in and does not have a pending application for the Missouri empowerment scholarship
103 accounts pr ogram for the same qualified student.
104 9. No tax credit claimed under this section shall be assigned, transferred, sold, or
105 otherwise conveyed.
106 10. (1) T ax credi ts issued under the pr ovisions of this section shall be r efundable.
107 No tax cred it claimed under this section shall be carried forward to any subsequent tax
108 year .
109 (2) Any r efunds issued from this tax credi t shall be offset against a qualified
110 taxpayer's outstanding state tax liabilities or certain other debts as described under
111 section 143.61 1 and sections 143.781 to 143.790.
112 (3) The department shall have the authority to conduct an audit or contract for
113 the auditing of r eceipts for eligible education expenses submitted under this section.
114 (4) The department is authorized to recaptur e the tax cred its otherwise
115 authorized under this section on a pr orated basis if an audit conducted under the
116 pr ovisions of this section finds that the qualified taxpayer claimed a student who no
117 longer attends a qualified school, has enr olled in a public school on a full-time basis, or
118 for other reas ons that would make the qualified taxpayer no longer eligible for the tax
119 cr edit authorized under this section.
120 (5) The department may pr omulgate rules addr essing rec apture, reco nciliation,
121 clerical err ors, and any other pr ovisions necessary to effectuate the progr am under this
122 section.
123 1 1. Notwithstanding any provi sion of section 105.1500 to the contrary , any
124 r equir ement to pr ovide information, documents, or rec ords under this section, and any
125 r equir ement established by the department to provi de information, documents, or
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126 r ecords for the purpose of administering and enforcing this section, shall be exempt
127 fr om section 105.1500.
128 12. The department, in conjunction with the state tre asurer , shall pr omulgate all
129 necessary rules and r egulations for the administration of this section including, but not
130 limited to, rules r elating to the verification of a taxpayer's qualified amount. Any rule
131 or portion of a rule, as that term is defined in section 536.010, that is cr eated under the
132 authority delegated in this section shall become effective only if it complies with and is
133 subject to all of the pr ovisions of chapter 536 and, if applicable, section 536.028. This
134 section and chapter 536 are nonseverable and if any of the powers vested with the
135 general assembly pursuant to chapter 536 to revie w , to delay the effective date, or to
136 disappr ove and annul a rule ar e subsequently held unconstitutional, then the grant of
137 rulemaking authority and any rule pr oposed or adopted after August 28, 2026, shall be
138 invalid and void.
139 13. This section shall not be subject to the pr ovisions of the Missouri sunset act
140 under sections 23.250 to 23.298.
✔
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