HCS SS SCS SB 1229 -- TAX CREDIT FOR CHILDREN IN CRISIS

SPONSOR:  Champion (Dixon)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Children
and Families by a vote of 10 to 0.

This substitute authorizes an income tax credit for up to 50% of
contributions to an entity which receives funding from the Court
Appointed Special Advocate Fund, a child advocacy center, or a
crisis care center.  To receive the credit, donations must be in
excess of $50, and the qualified agency receiving the
contribution will issue to the taxpayer a contribution
verification to be attached to his or her income tax return.

In order to become a qualified agency, each year prior to
December 31, an agency must apply to the Department of Social
Services to verify its status.  By February 1 of each year, the
department will provide a list of qualified agencies to the
Department of Revenue.

The children in crisis tax credit has a cumulative cap equal to
the unclaimed portion of the resident adoption tax credit.  The
amount available will be equally divided among the agencies, and
any unused portion not used by an agency will be available to the
remaining agencies.  After all the children in crisis tax credits
have been claimed, any remaining unclaimed portion of the
reserved allocation will be made available for non-resident
adoption tax credits claims.  The substitute allocates $2 million
of the tax credits for the adoption of special needs children who
are residents of this state.  The cumulative amount of tax
credits that may be claimed for nonrecurring adoption expenses
will not be less than $4 million but may be increased by
appropriation.

The substitute removes the requirement that the Director of the
Department of Revenue submit an annual report to the General
Assembly on the income levels of taxpayers claiming the tax
credit.

The substitute also requires applications to claim the adoption
credit for special needs children to be filed between July 1 and
April 15 of each fiscal year.  The credit is not refundable, but
can be carried forward and claimed for up to five consecutive
years.

The provisions of the substitute will expire six years from the
effective date.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $0 or
Unknown in FY 2007, FY 2008, and FY 2009.  Subject to
appropriation.  No effect on Other State Funds in FY 2007, FY
2008, and FY 2009.

PROPONENTS:  Supporters say that it is impossible to get new
funding for CASA, child advocacy centers, and crisis care
centers.  Currently, we have two allocations of money for adopted
special needs children.  One is for in-state, at-risk children;
and the other is for out-of-state, at-risk children.  The bill
will allow unused in-state adoption tax credits to be allocated
to non-resident adoption tax credit claims.

Testifying for the bill were Senators Champion and Loudon;
Missouri Council for Children at Risk; Families for Change;
Missouri Network of Child Advocacy Centers; and Mary Beck.

OPPONENTS:  There was no opposition voiced to the committee.

OTHERS:  Others testifying on the bill offered informational
assistance.

Others testifying on the bill was Department of Revenue.

Dominic Lackey, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:47 am