HB 1562 -- TAX CREDIT FOR MILITARY-RELATED COMPENSATION

SPONSOR:  LeVota

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Veterans by a vote of 11 to 0.

Beginning January 1, 2008, this bill authorizes a refundable
income tax credit to individuals, partnerships, and corporations
for 100% of the salary and benefits paid to any employee while on
active military duty as a member of a reserve or national guard
unit.  The credit is limited to $500,000 a year, and the
Department of Revenue will determine a procedure to equally
distribute the cumulative tax credits among the qualifying
taxpayers.

The provisions of the bill will expire December 31 six years from
the effective date.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $532,001
in FY 2009, $533,228 in FY 2010, and $534,275 in FY 2011.  No
impact on Other State Funds in FY 2009, FY 2010, and FY 2011.

PROPONENTS:  Supporters say that there has been an ongoing
problem with some employers not paying benefits to service
members on active duty.  The bill will help alleviate this
problem by providing tax credits for these employers.

Testifying for the bill were Representative LeVota; Dewey Riehn,
Veterans of Foreign Wars of the United States, Missouri
Department; and Ernie Lee, Missouri Association of Veterans
Organizations.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:10 pm