Authorizes tax credits for child care

SECOND REGULAR SESSION
SENATE BILL NO. 1678
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR GREGORY (21).
7276S.01I KRISTINA MARTIN, Secretary
AN ACT
To amend chapter 135, RSMo, by adding thereto three new sections relating to tax credits for child
care.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Chapter 135, RSMo, is amended by adding thereto 1
three new sections, to be known as sections 135.1310, 135.1325, 2
and 135.1350, to read as follows:3
135.1310. 1. This section shall be known and may be 1
cited as the "Child Care Contribution Tax Credit Act". 2
2. For purposes of this section, the following terms 3
shall mean: 4
(1) "Child care", the same as defined in section 5
210.201; 6
(2) "Child care desert", a census tract that has a 7
poverty rate of at least twenty percent or a median family 8
income of less than eighty percent of the statewide average 9
and where at least five hundred people or thirty-three 10
percent of the population are located at least one-half mile 11
away from a child care provider in urbanized areas or at 12
least ten miles away in rural areas; 13
(3) "Child care provider", a child care provider as 14
defined in section 210.201 that is licensed under section 15
210.221, or that is unlicensed and that is contracted with 16
the department of elementary and secondary education; 17
SB 1678 2
(4) "Contribution", an eligible donation of cash, 18
stock, bonds or other marketable securities, or real 19
property. "Contribution" shall include the reasonable 20
purchase price paid for an employer's purchase of child care 21
from a child care provider for the children of the 22
employer's employees; 23
(5) "Department", the Missouri department of economic 24
development; 25
(6) "Intermediary", a nonprofit organization that is, 26
or agrees to become, subject to the jurisdiction of this 27
state for the purposes of the administration and enforcement 28
of this section, and that distributes funds for the purposes 29
of supporting a child care provider; 30
(7) "Person related to the taxpayer", an individual 31
connected with the taxpayer by blood, adoption, or marriage, 32
or an individual, corporation, partnership, limited 33
liability company, trust, or association controlled by, or 34
under the control of, the taxpayer directly, or through an 35
individual, corporation, limited liability company, 36
partnership, trust, or association under the control of the 37
taxpayer; 38
(8) "Rural area", a town or community within the state 39
that is not within a metropolitan statistical area and has a 40
population of six thousand or fewer inhabitants as 41
determined by the last preceding federal decennial census or 42
any unincorporated area not within a metropolitan 43
statistical area; 44
(9) "State tax liability", any liability incurred by a 45
taxpayer pursuant to chapter 143 or chapter 148, exclusive 46
of the provisions relating to the withholding of tax as 47
provided for in sections 143.191 to 143.265 and related 48
provisions; 49
SB 1678 3
(10) "Tax credit", a credit against the taxpayer's 50
state tax liability; 51
(11) "Taxpayer", a corporation as defined in section 52
143.441 or 143.471, any charitable organization that is 53
exempt from federal income tax and whose Missouri unrelated 54
business taxable income, if any, would be subject to the 55
state income tax imposed pursuant to chapter 143, or 56
individuals or partnerships subject to the state income tax 57
imposed by the provisions of chapter 143. 58
3. (1) For all tax years beginning on or after 59
January 1, 2027, a taxpayer may claim the tax credit 60
authorized in this section against the taxpayer's state tax 61
liability for the tax year in which a verified contribution 62
was made in an amount equal to seventy-five percent of the 63
verified contribution to a child care provider or 64
intermediary. The minimum amount of any tax credit issued 65
shall not be less than one hundred dollars and shall not 66
exceed two hundred thousand dollars per tax year. 67
(2) A child care provider or intermediary shall apply 68
to the department to participate in the program established 69
in this section, using a form prescribed by the department. 70
The department shall determine eligibility and enter into an 71
agreement that meets the requirements of section 620.017 72
with an eligible child care facility or intermediary. Only 73
contributions to child care providers and intermediaries 74
that have entered into an agreement with the department may 75
receive a tax credit pursuant to this section. 76
(3) The child care provider or intermediary receiving 77
a contribution shall, within sixty days of the date it 78
received the contribution, file a contribution verification 79
with the department and issue a copy of the contribution 80
verification to the taxpayer. The contribution verification 81
SB 1678 4
shall be in the form established by the department and shall 82
include the taxpayer's name, taxpayer's state or federal tax 83
identification number or last four digits of the taxpayer's 84
Social Security number, amount of tax credit sought, amount 85
or description of contribution, legal name and address of 86
the child care provider receiving the tax credit, the child 87
care provider's federal employer identification number, the 88
child care provider's department of elementary and secondary 89
education vendor number or license number, the date the 90
child care provider received the contribution from the 91
taxpayer, and any other information requested by the 92
department. The contribution verification shall include a 93
signed attestation stating, in the case of a child care 94
provider, that the child care provider will use the 95
contribution solely to promote child care and, in the case 96
of an intermediary, that the intermediary will distribute 97
the contribution and any income thereon in full to one or 98
more child care providers within two years of receipt. 99
(4) The failure of the child care provider or 100
intermediary to timely issue the contribution verification 101
to the taxpayer or file it with the department shall entitle 102
the taxpayer to a refund of the contribution from the child 103
care provider or intermediary. 104
4. A contribution, whether received from the taxpayer 105
claiming the tax credit pursuant to this section or from an 106
intermediary, is eligible when: 107
(1) The contribution is used directly by the child 108
care provider to promote child care for children twelve 109
years of age or younger, including by acquiring or improving 110
child care facilities, equipment, or services, staff 111
salaries, staff training, or improving the quality of child 112
care; 113
SB 1678 5
(2) The contribution, if made to an intermediary, is 114
distributed in full by the intermediary within two years of 115
receipt to one or more child care providers for the sole 116
purpose of promoting child care for children twelve years of 117
age or younger; 118
(3) The contribution is made to a child care provider 119
or intermediary in which the taxpayer or a person related to 120
the taxpayer does not have a direct financial interest; 121
(4) The contribution made to an intermediary is not 122
designated for a child care provider in which the taxpayer 123
or a person related to the taxpayer has a direct financial 124
interest; and 125
(5) The contribution is not made in exchange for care 126
of a child or children, unless the contribution is made by 127
an employer in purchasing child care for the children of the 128
employer's employees. 129
5. A child care provider or intermediary that uses the 130
contribution for an ineligible purpose shall repay to the 131
department the value of the tax credit for the contribution 132
amount used for such ineligible purpose. An intermediary 133
that accepts a contribution and issues a taxpayer a 134
contribution verification is itself permanently ineligible 135
to claim or redeem a tax credit pursuant to this section. 136
6. (1) The tax credits authorized by this section 137
shall not be refundable and shall not be transferred, sold, 138
or otherwise conveyed. Any amount of approved tax credits 139
that a taxpayer is prohibited by this subsection from using 140
for the tax year in which the credit is first claimed may be 141
carried forward to the taxpayer's subsequent tax year for up 142
to six succeeding tax years. 143
(2) In the case of a taxpayer that has or elects pass- 144
through taxation pursuant to federal income tax law, the tax 145
SB 1678 6
credits issued pursuant to this section shall be apportioned 146
in proportion to the share of ownership of the taxpayer on 147
the last day of the taxpayer's tax period for which such tax 148
credits will be issued, to the following: 149
(a) The shareholders of the S corporation; 150
(b) The partners in a partnership; or 151
(c) The members of a limited liability company that 152
has or elects pass-through taxation pursuant to federal 153
income tax law. 154
(3) A taxpayer shall not claim a tax credit pursuant 155
to this section and a tax credit pursuant to section 156
135.1325 or 135.1350 for the same contribution or 157
expenditure. 158
7. Notwithstanding any provision of subsection 6 of 159
this section to the contrary, a taxpayer that is exempt, 160
under 26 U.S.C. Section 501(c)(3), and any amendments 161
thereto, from all or part of the federal income tax shall be 162
eligible for a refund of its tax credit issued under this 163
section, without regard to whether it has incurred any state 164
tax liability. Such exempt taxpayer may claim a refund of 165
the tax credit on its tax return required to be filed under 166
the provisions of chapter 143, exclusive of the return for 167
the withholding of tax under sections 143.191 to 143.265. 168
If such exempt taxpayer is not required to file a tax return 169
under the provisions of chapter 143, the exempt taxpayer may 170
claim a refund of the tax credit on a refund claim form 171
prescribed by the department of revenue. The department of 172
revenue shall prescribe such forms, instructions, and rules 173
as it deems appropriate to carry out the provisions of this 174
subsection. 175
8. (1) The amount of tax credits authorized pursuant 176
to this section shall not exceed twenty million dollars for 177
SB 1678 7
each calendar year. The department shall approve tax credit 178
applications on a first-come, first-served basis until the 179
tax credit authorization limit is reached for the calendar 180
year. A taxpayer shall apply to the department for the 181
child care contribution tax credit by submitting a copy of 182
the contribution verification provided by a child care 183
provider or intermediary to such taxpayer. Upon receipt of 184
such contribution verification, the department shall issue a 185
tax credit certificate to the taxpayer. 186
(2) If the maximum amount of tax credits allowed in 187
any calendar year as provided pursuant to subdivision (1) of 188
this subsection is authorized, the maximum amount of tax 189
credits allowed pursuant to subdivision (1) of this 190
subsection shall be increased by fifteen percent for such 191
calendar year, provided that all such increases in the 192
allowable amount of tax credits shall be reserved for 193
contributions made to child care providers located in a 194
child care desert. The director of the department shall 195
publish such adjusted amount. 196
9. The tax credits allowed under this section shall be 197
considered a domestic and social tax credit under 198
subdivision (5) of subsection 2 of section 135.800. 199
10. All action and communication undertaken or 200
required under this section shall be exempt from section 201
105.1500. 202
11. The department may promulgate rules to implement 203
and administer the provisions of this section. Any rule or 204
portion of a rule, as that term is defined in section 205
536.010, that is created pursuant to the authority delegated 206
in this section shall become effective only if it complies 207
with and is subject to all of the provisions of chapter 536 208
and, if applicable, section 536.028. This section and 209
SB 1678 8
chapter 536 are nonseverable and if any of the powers vested 210
with the general assembly pursuant to chapter 536 to review, 211
to delay the effective date, or to disapprove and annul a 212
rule are subsequently held unconstitutional, then the grant 213
of rulemaking authority and any rule proposed or adopted 214
after August 28, 2026, shall be invalid and void. 215
12. Under section 23.253 of the Missouri sunset act: 216
(1) The provisions of the new program authorized under 217
this section shall sunset six years after the effective date 218
of this section unless reauthorized by the general assembly; 219
(2) This section shall terminate on September first of 220
the calendar year immediately following the calendar year in 221
which the program authorized under this section is sunset; 222
and 223
(3) The provisions of this subsection shall not be 224
construed to limit or in any way impair the department of 225
revenue's ability to redeem tax credits authorized on or 226
before the date the program authorized under this section 227
expires or a taxpayer's ability to redeem such tax credits. 228
135.1325. 1. This section shall be known and may be 1
cited as the "Employer Provided Child Care Assistance Tax 2
Credit Act". 3
2. For purposes of this section, the following terms 4
shall mean: 5
(1) "Child care desert", a census tract that has a 6
poverty rate of at least twenty percent or a median family 7
income of less than eighty percent of the statewide average 8
and where at least five hundred people or thirty-three 9
percent of the population are located at least one-half mile 10
away from a child care provider in urbanized areas or at 11
least ten miles away in rural areas; 12
SB 1678 9
(2) "Child care facility", a child care facility as 13
defined in section 210.201 that is licensed pursuant to 14
section 210.221, or that is unlicensed and that is 15
contracted with the department of elementary and secondary 16
education; 17
(3) "Child care provider", a child care provider as 18
defined in section 210.201 that is licensed pursuant to 19
section 210.221, or that is unlicensed and that is 20
contracted with the department of elementary and secondary 21
education; 22
(4) "Department", the Missouri department of economic 23
development; 24
(5) "Employer matching contribution", a contribution 25
made by the taxpayer to a cafeteria plan, as that term is 26
used in 26 U.S.C. Section 125, of an employee of the 27
taxpayer, which matches a dollar amount or percentage of the 28
employee's contribution to the cafeteria plan. "Employer 29
matching contribution" shall not include the amount of any 30
salary reduction or other compensation foregone by the 31
employee in connection with the cafeteria plan; 32
(6) "Qualified child care expenditure", an amount paid 33
of reasonable costs incurred that meet any of the following: 34
(a) To acquire, construct, rehabilitate, or expand 35
property that will be, or is, used as part of a child care 36
facility that is either operated by the taxpayer or 37
contracted with by the taxpayer and which does not 38
constitute part of the principal residence of the taxpayer 39
or any employee of the taxpayer; 40
(b) For the operating costs of a child care facility 41
of the taxpayer, including costs relating to the training of 42
child care employees, scholarship programs, and for 43
compensation to child care employees; 44
SB 1678 10
(c) Under a contract with a child care facility to 45
provide child care services to employees of the taxpayer; or 46
(d) As an employer matching contribution, but only to 47
the extent such employer matching contribution is restricted 48
by the taxpayer solely for the taxpayer's employee to obtain 49
child care services at a child care facility and is used for 50
that purpose during the tax year; 51
(7) "Rural area", a town or community within the state 52
that is not within a metropolitan statistical area and has a 53
population of six thousand or fewer inhabitants as 54
determined by the last preceding federal decennial census or 55
any unincorporated area not within a metropolitan 56
statistical area; 57
(8) "State tax liability", any liability incurred by 58
the taxpayer pursuant to the provisions of chapter 143 or 59
chapter 148, exclusive of the provisions relating to the 60
withholding of tax as provided for in sections 143.191 to 61
143.265 and related provisions; 62
(9) "Tax credit", a credit against the taxpayer's 63
state tax liability; 64
(10) "Taxpayer", a corporation as defined in section 65
143.441 or 143.471, any charitable organization that is 66
exempt from federal income tax and whose Missouri unrelated 67
business taxable income, if any, would be subject to the 68
state income tax imposed under chapter 143, or individuals 69
or partnerships subject to the state income tax imposed by 70
the provisions of chapter 143. 71
3. For all tax years beginning on or after January 1, 72
2027, a taxpayer with two or more employees may claim a tax 73
credit authorized in this section in an amount equal to 74
thirty percent of the qualified child care expenditures paid 75
or incurred with respect to a child care facility in order 76
SB 1678 11
to provide child care to the taxpayer's employees. The 77
maximum amount of any tax credit issued under this section 78
shall not exceed two hundred thousand dollars per taxpayer 79
per tax year. 80
4. A facility shall not be treated as a child care 81
facility with respect to a taxpayer unless enrollment in the 82
facility is open to the dependents of employees of the 83
taxpayer during the tax year, provided that the dependents 84
fall within the age range ordinarily cared for by, and only 85
require a level of care ordinarily provided by, such 86
facility. 87
5. (1) The tax credits authorized by this section 88
shall not be refundable or transferable. The tax credits 89
shall not be sold, assigned, or otherwise conveyed. Any 90
amount of approved tax credits that a taxpayer is prohibited 91
by this subsection from using for the tax year in which the 92
credit is first claimed may be carried forward to the 93
taxpayer's subsequent tax year for up to six succeeding tax 94
years. 95
(2) In the case of a taxpayer that has or elects pass- 96
through taxation pursuant to federal income tax law, the tax 97
credits issued pursuant to this section shall be apportioned 98
in proportion to the share of ownership of the taxpayer on 99
the last day of the taxpayer's tax period for which such tax 100
credits will be issued, to the following: 101
(a) The shareholders of the S corporation; 102
(b) The partners in a partnership; or 103
(c) The members of a limited liability company that 104
has or elects pass-through taxation pursuant to federal 105
income tax law. 106
(3) A taxpayer shall not claim a tax credit pursuant 107
to this section and a tax credit pursuant to section 108
SB 1678 12
135.1310 or 135.1350 for the same contribution or 109
expenditure. 110
6. Notwithstanding any provision of subsection 5 of 111
this section to the contrary, a taxpayer that is exempt, 112
under 26 U.S.C. Section 501(c)(3), and any amendments 113
thereto, from all or part of the federal income tax shall be 114
eligible for a refund of its tax credit issued under this 115
section, without regard to whether it has incurred any state 116
tax liability. Such exempt taxpayer may claim a refund of 117
the tax credit on its tax return required to be filed under 118
the provisions of chapter 143, exclusive of the return for 119
the withholding of tax under sections 143.191 to 143.265. 120
If such exempt taxpayer is not required to file a tax return 121
under the provisions of chapter 143, the exempt taxpayer may 122
claim a refund of the tax credit on a refund claim form 123
prescribed by the department of revenue. The department of 124
revenue shall prescribe such forms, instructions, and rules 125
as it deems appropriate to carry out the provisions of this 126
subsection. 127
7. (1) The amount of tax credits authorized pursuant 128
to this section shall not exceed twenty million dollars for 129
each calendar year. The department shall approve tax credit 130
applications on a first-come, first-served basis until the 131
tax credit authorization limit is reached for the calendar 132
year. 133
(2) If the maximum amount of tax credits allowed in 134
any calendar year as provided pursuant to subdivision (1) of 135
this subsection is authorized, the maximum amount of tax 136
credits allowed pursuant to subdivision (1) of this 137
subsection shall be increased by fifteen percent for such 138
calendar year, provided that all such increases in the 139
allowable amount of tax credits shall be reserved for 140
SB 1678 13
qualified child care expenditures for child care facilities 141
located in a child care desert. The director of the 142
department shall publish such adjusted amount. 143
8. A taxpayer who has been issued a tax credit under 144
this section shall notify the department within sixty days 145
of any cessation of operation, change in ownership, or 146
agreement to assume recapture liability as such terms are 147
defined by 26 U.S.C. Section 45F, in the form and manner 148
prescribed by department rule or instruction. If there is a 149
cessation of operation or change in ownership relating to a 150
child care facility, the department may require the taxpayer 151
to repay the department an amount equal to the credit issued 152
under this section, but this recapture amount shall be 153
limited to the tax credit allowed under this section. The 154
recapture amount shall be considered a tax liability arising 155
on the tax payment due date for the tax year in which the 156
cessation of operation, change in ownership, or agreement to 157
assume recapture liability occurred and shall be assessed 158
and collected under the same provisions that apply to a tax 159
liability under chapter 143 or chapter 148, provided that no 160
interest shall be assessed against any amounts recaptured 161
pursuant to this subsection. 162
9. The tax credit allowed pursuant to this section 163
shall be considered a domestic and social tax credit under 164
subdivision (5) of subsection 2 of section 135.800. 165
10. All action and communication undertaken or 166
required under this section shall be exempt from section 167
105.1500. 168
11. The department may promulgate rules to implement 169
and administer the provisions of this section. Any rule or 170
portion of a rule, as that term is defined in section 171
536.010, that is created pursuant to the authority delegated 172
SB 1678 14
in this section shall become effective only if it complies 173
with and is subject to all of the provisions of chapter 536 174
and, if applicable, section 536.028. This section and 175
chapter 536 are nonseverable and if any of the powers vested 176
with the general assembly pursuant to chapter 536 to review, 177
to delay the effective date, or to disapprove and annul a 178
rule are subsequently held unconstitutional, then the grant 179
of rulemaking authority and any rule proposed or adopted 180
after August 28, 2026, shall be invalid and void. 181
12. Under section 23.253 of the Missouri sunset act: 182
(1) The provisions of the new program authorized under 183
this section shall sunset six years after the effective date 184
of this section unless reauthorized by the general assembly; 185
(2) The act shall terminate on September first of the 186
calendar year immediately following the calendar year in 187
which the program authorized under the act is sunset; and 188
(3) The provisions of this subsection shall not be 189
construed to limit or in any way impair the department of 190
revenue's ability to redeem tax credits authorized on or 191
before the date the program authorized under this section 192
expires or a taxpayer's ability to redeem such tax credits. 193
135.1350. 1. This section shall be known and may be 1
cited as the "Child Care Providers Tax Credit Act". 2
2. For purposes of this section, the following terms 3
shall mean: 4
(1) "Capital expenditures", expenses incurred by a 5
child care provider, during the tax year for which a tax 6
credit is claimed pursuant to this section, for the 7
construction, renovation, or rehabilitation of a child care 8
facility to the extent necessary to operate a child care 9
facility and comply with applicable child care facility 10
SB 1678 15
regulations promulgated by the department of elementary and 11
secondary education; 12
(2) "Child care desert", a census tract that has a 13
poverty rate of at least twenty percent or a median family 14
income of less than eighty percent of the statewide average 15
and where at least five hundred people or thirty-three 16
percent of the population are located at least one-half mile 17
away from a child care provider in urbanized areas or at 18
least ten miles away in rural areas; 19
(3) "Child care facility", a child care facility as 20
defined in section 210.201 that is licensed pursuant to 21
section 210.221, or that is unlicensed and that is 22
contracted with the department of elementary and secondary 23
education; 24
(4) "Child care provider", a child care provider as 25
defined in section 210.201 that is licensed pursuant to 26
section 210.221, or that is unlicensed and that is 27
contracted with the department of elementary and secondary 28
education; 29
(5) "Department", the department of elementary and 30
secondary education; 31
(6) "Eligible employer withholding tax", the total 32
amount of tax that the child care provider was required, 33
under section 143.191, to deduct and withhold from the wages 34
it paid to employees during the tax year for which the child 35
care provider is claiming a tax credit pursuant to this 36
section, to the extent actually paid. "Eligible employer 37
withholding tax" shall not include any additional voluntary 38
withholding requested by an employee; 39
(7) "Employee", an employee, as that term is used in 40
subsection 2 of section 143.191, of a child care provider 41
who worked for the child care provider for an average of at 42
SB 1678 16
least ten hours per week for at least a three-month period 43
during the tax year for which a tax credit is claimed 44
pursuant to this section and who is not an immediate family 45
member of the child care provider; 46
(8) "Rural area", a town or community within the state 47
that is not within a metropolitan statistical area and has a 48
population of six thousand or fewer inhabitants as 49
determined by the last preceding federal decennial census or 50
any unincorporated area not within a metropolitan 51
statistical area; 52
(9) "State tax liability", any liability incurred by 53
the taxpayer pursuant to the provisions of chapter 143, 54
exclusive of the provisions relating to the withholding of 55
tax as provided for in sections 143.191 to 143.265 and 56
related provisions; 57
(10) "Tax credit", a credit against the taxpayer's 58
state tax liability; 59
(11) "Taxpayer", a corporation as defined in section 60
143.441 or 143.471, any charitable organization that is 61
exempt from federal income tax and whose Missouri unrelated 62
business taxable income, if any, would be subject to the 63
state income tax imposed under chapter 143, or an individual 64
or partnership subject to the state income tax imposed by 65
the provisions of chapter 143. 66
3. For all tax years beginning on or after January 1, 67
2027, a child care provider with three or more employees may 68
claim a tax credit authorized in this section in an amount 69
equal to the child care provider's eligible employer 70
withholding tax, and may also claim a tax credit in an 71
amount up to thirty percent of the child care provider's 72
capital expenditures. No tax credit for capital 73
expenditures shall be allowed if the capital expenditures 74
SB 1678 17
are less than one thousand dollars. The amount of any tax 75
credit issued under this section shall not exceed two 76
hundred thousand dollars per child care provider per tax 77
year. 78
4. To claim a tax credit authorized pursuant to this 79
section, a child care provider shall submit to the 80
department, for preliminary approval, an application for the 81
tax credit on a form provided by the department and at such 82
times as the department may require. If the child care 83
provider is applying for a tax credit for capital 84
expenditures, the child care provider shall present proof 85
acceptable to the department that the child care provider's 86
capital expenditures satisfy the definition in subdivision 87
(1) of subsection 2 of this section. Upon final approval of 88
an application, the department shall issue the child care 89
provider a certificate of tax credit. 90
5. (1) The tax credits authorized by this section 91
shall not be refundable and shall not be transferred, sold, 92
assigned, or otherwise conveyed. Any amount of credit that 93
exceeds the child care provider's state tax liability for 94
the tax year for which the tax credit is issued may be 95
carried forward to the child care provider's subsequent tax 96
year for up to six succeeding tax years. 97
(2) In the case of a taxpayer that has or elects pass- 98
through taxation pursuant to federal income tax law, the tax 99
credits issued pursuant to this section shall be apportioned 100
in proportion to the share of ownership of the taxpayer on 101
the last day of the taxpayer's tax period for which such tax 102
credits will be issued, to the following: 103
(a) The shareholders of the S corporation; 104
(b) The partners in a partnership; or 105
SB 1678 18
(c) The members of a limited liability company that 106
has or elects pass-through taxation pursuant to federal 107
income tax law. 108
(3) A taxpayer shall not claim a tax credit pursuant 109
to this section and a tax credit pursuant to section 110
135.1310 or 135.1325 for the same contribution or 111
expenditure. 112
6. Notwithstanding any provision of subsection 5 of 113
this section to the contrary, a child care provider that is 114
exempt, under 26 U.S.C. Section 501(c)(3), and any 115
amendments thereto, from all or part of the federal income 116
tax shall be eligible for a refund of its tax credit issued 117
under this section, without regard to whether it has 118
incurred any state tax liability. Such exempt child care 119
provider may claim a refund of the tax credit on its tax 120
return required to be filed under the provisions of chapter 121
143, exclusive of the return for the withholding of tax 122
under sections 143.191 to 143.265. If such exempt child 123
care provider is not required to file a tax return under the 124
provisions of chapter 143, the exempt child care provider 125
may claim a refund of the tax credit on a refund claim form 126
prescribed by the department of revenue. The department of 127
revenue shall prescribe such forms, instructions, and rules 128
as it deems appropriate to carry out the provisions of this 129
subsection. 130
7. (1) The amount of tax credits authorized pursuant 131
to this section shall not exceed twenty million dollars for 132
each calendar year. The department shall approve tax credit 133
applications on a first-come, first-served basis until the 134
tax credit authorization limit is reached for the calendar 135
year. 136
SB 1678 19
(2) If the maximum amount of tax credits allowed in 137
any calendar year as provided pursuant to subdivision (1) of 138
this subsection is authorized, the maximum amount of tax 139
credits allowed pursuant to subdivision (1) of this 140
subsection shall be increased by fifteen percent for such 141
calendar year, provided that all such increases in the 142
allowable amount of tax credits shall be reserved for child 143
care providers located in a child care desert. The director 144
of the department shall publish such adjusted amount. 145
8. The tax credit authorized by this section shall be 146
considered a domestic and social tax credit under 147
subdivision (5) of subsection 2 of section 135.800. 148
9. All action and communication undertaken or required 149
with respect to this section shall be exempt from section 150
105.1500. Notwithstanding section 32.057 or any other tax 151
confidentiality law to the contrary, the department of 152
revenue may disclose tax information to the department for 153
the purpose of the verification of a child care provider's 154
eligible employer withholding tax under this section. 155
10. The department may promulgate rules and adopt 156
statements of policy, procedures, forms, and guidelines to 157
implement and administer the provisions of this section. 158
Any rule or portion of a rule, as that term is defined in 159
section 536.010, that is created pursuant to the authority 160
delegated in this section shall become effective only if it 161
complies with and is subject to all of the provisions of 162
chapter 536 and, if applicable, section 536.028. This 163
section and chapter 536 are nonseverable and if any of the 164
powers vested with the general assembly pursuant to chapter 165
536 to review, to delay the effective date, or to disapprove 166
and annul a rule are subsequently held unconstitutional, 167
SB 1678 20
then the grant of rulemaking authority and any rule proposed 168
or adopted after August 28, 2026, shall be invalid and void. 169
11. Under section 23.253 of the Missouri sunset act: 170
(1) The provisions of the new program authorized under 171
this section shall sunset six years after the effective date 172
of this section unless reauthorized by the general assembly; 173
(2) The act shall terminate on September first of the 174
calendar year immediately following the calendar year in 175
which the program authorized under this section is sunset; 176
and 177
(3) The provisions of this subsection shall not be 178
construed to limit or in any way impair the department of 179
revenue's ability to redeem tax credits authorized on or 180
before the date the program authorized under this section 181
expires or a taxpayer's ability to redeem such tax credits. 182
✓