Read the full stored bill text
SECOND REGULAR SESSION
HOUSE BILL NO. 2882
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE REUTER.
5257H.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
contributions to certain or ganizations.
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 135.588, to read as follows:
135.588. 1. As used in this section, the following terms mean:
2 (1) "Contribution", a donation of cash, stock, bonds, or other marketable
3 securities, or r eal pro perty valued at the curr ent pr operty tax-assessed valuation of the
4 pr operty . If a pro perty has not been assessed or has no assessed valuation, no credit
5 shall be authorized for the donation of the pr operty;
6 (2) "Department", the department of mental health;
7 (3) "Dir ector", the dir ector of the department of mental health;
8 (4) "Qualified organization", an organization or other nonpr ofit entity located
9 in this state that is exempt fr om taxation under Section 501(c)(3) of the Internal
10 Revenue Code of 1986, as amended, that provi des a compr ehensive array of mental
11 health services, r ehabilitation, support, and assistance to veterans with mental health
12 disorders thr ough licensed mental health profes sionals in compliance with Missouri
13 statutes or other alternative tr eatments or services determined by the department;
14 (5) "T ax cre dit", a cr edit against the tax otherwise due under chapter 143,
15 excluding withholding tax imposed under sections 143.191 to 143.265;
16 (6) "T axpayer", any individual, firm, partner in a firm, corporation,
1 7 shar eholder in an S corporation, or other entity doing business in this state, subject
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 to the state income tax imposed under chapter 143, excluding the withholding tax
19 imposed under sections 143.191 to 143.265, who makes a contribution to a qualified
20 organization.
21 2. For all tax years beginning on or after January 1, 2027, a taxpayer shall be
22 allowed to claim a tax cr edit against the taxpayer's state tax liability in an amount equal
23 to seventy per cent of the taxpayer's total contribution or contributions to qualified
24 organizations.
25 3. The amount of the tax credi t claimed shall not exceed the amount of the
26 taxpayer's state tax liability for the tax year for which the cred it is claimed, and such
27 taxpayer shall not be allowed to claim a tax cr edit in excess of fifty thousand dollars per
28 tax year .
29 4. T ax cred its issued under the pr ovisions of this section shall not be ref undable;
30 however , any tax credi t that cannot be claimed for the tax year in which the contribution
31 was made may be carried forward one succeeding tax year . No tax cred it claimed under
32 this section shall be assigned, transferred, sold, or otherwise conveyed.
33 5. Except for any excess cre dit that is carried over under the pro visions of
34 subsection 4 of this section, a taxpayer shall not be allowed to claim a tax credi t unless
35 the total amount of such taxpayer's contribution or contributions to qualified
36 organizations for the tax year has a value of at least one hundr ed dollars.
37 6. The dir ector shall determine, at least annually , which organizations in this
38 state may be classified as qualified organizations. The dir ector may requ ire an
39 organization seeking to be classified as a qualified organization to pro vide any
40 information that is reas onably necessary to make such a determination. The dir ector
41 shall classify an organization as a qualified organization if such organization meets the
42 definition set forth under subsection 1 of this section and any additional requi rem ents
43 that the department may establish by rule.
44 7. The dir ector shall establish a pro cedur e, in consultation with the department
45 of re venue, by which a taxpayer can determine if a organization has been classified as a
46 qualified organization.
47 8. Upon rec eipt and acceptance of a contribution fr om a taxpayer , a qualified
48 organization shall issue to the taxpayer a statement evidencing the recei pt of such
49 contribution, including the monetary value of such contribution. A qualified
50 organization shall be permitted to decline a contribution fr om a taxpayer .
51 9. Each qualified organization shall pro vide information to the department of
52 r evenue concerning the identity of each taxpayer making a contribution to the qualified
53 organization who is claiming a tax cred it under this section and the amount of the
54 contribution.
HB 2882 2
55 10. Notwithstanding any provi sions of section 105.1500 to the contrary , any
56 r equir ement to pr ovide information, documents, or rec ords under this section, and any
57 r equir ement established by the dir ector or the department of r evenue to provi de
58 information, documents, or r ecords for the purpose of administering and enforcing this
59 section, shall be exempt fr om section 105.1500.
60 1 1. The direc tor , in consultation with the department of re venue and the
61 Missouri veterans commission, may promul gate all necessary rules and r egulations for
62 the administration of this section. Any rule or portion of a rule, as that term is defined
63 in section 536.010, that is creat ed under the authority delegated in this section shall
64 become effective only if it complies with and is subject to all of the provi sions of chapter
65 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable
66 and if any of the powers vested with the general assembly pursuant to chapter 536 to
67 r eview , to delay the effective date, or to disappr ove and annul a rule are subsequently
68 held unconstitutional, then the grant of rulemaking authority and any rule pr oposed or
69 adopted after August 28, 2026, shall be invalid and void.
70 12. Under section 23.253 of the Missouri sunset act:
71 (1) The prov isions of the new pr ogram authorized under this section shall sunset
72 six years after the effective date of this section unless reauthori zed by an act of the
73 general assembly;
74 (2) This section shall terminate on September first of the calendar year
75 immediately following the calendar year in which the prog ram authorized under this
76 section is sunset; and
77 (3) Nothing in this subsection shall prev ent a taxpayer fr om claiming a tax credit
78 pr operly issued before this pr ogram was sunset in a tax year after the prog ram is sunset.
✔
HB 2882 3