Modifies provisions relating to an income tax deduction for certain National Guard duties

SECOND REGULAR SESSION
HOUSE BILL NO. 2620
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE SCHUL TE.
6286H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o repeal section 143.175, RSMo, and to enact in lieu thereof one new section relating to an
income tax deduction for certain National Guard duties.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 143.175, RSMo, is repealed and one new section enacted in lieu
2 thereof, to be known as section 143.175, to read as follows:
143.175. 1. For all tax years beginning on or after January 1, 2020, for purposes of
2 calculating the Missouri taxable income as required under section 143.01 1, a percentage of
3 the income received by any person as salary or compensation:
4 (1) In performance of inactive duty for training (IDT) of the National Guard or annual
5 training status (A T) of the National Guard;
6 (2) In reserve components of the Armed Forces of the United States; [ or ]
7 (3) For all tax years beginning on or after January 1, 2025, in the form of a bonus
8 from the National Guard or a reserve component of the United States Armed Forces for
9 joining, reenlisting, or for any other reason; or
10 (4) For all tax years beginning on or after January 1, 2027, in performance of
11 state-funded military orders of the National Guard, commonly known as state active
12 duty (SAD) or state emergency duty (SED);
13
14 and to the extent that such income is included in the federal adjusted gross income, may be
15 deducted from the taxpayer's Missouri adjusted gross income to determine such taxpayer's
16 Missouri taxable income. If such person files a combined return with a spouse, a percentage
17 of any military income received while engaging in the performance of National Guard or
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 reserve military duty may be deducted from their Missouri combined adjusted gross income.
19 Such military income shall be deducted as follows:
20 (a) For the tax year beginning on or after January 1, 2020, twenty percent of such
21 military income;
22 (b) For the tax year beginning on or after January 1, 2021, forty percent of such
23 military income;
24 (c) For the tax year beginning on or after January 1, 2022, sixty percent of such
25 income;
26 (d) For the tax year beginning on or after January 1, 2023, eighty percent of such
27 income;
28 (e) For all tax years beginning on January 1, 2024, and thereafter , one hundred
29 percent of such income.
30 2. Notwithstanding the provisions of this section or any other provision of law to the
31 contrary , the deduction authorized by this section shall not apply to compensation received
32 while engaging in civilian federal service, including civil service positions requiring the
33 wearing of military uniform and military af filiation.
✔
HB 2620 2