HB 1340 -- Federal Income Tax Deductions

Sponsor:  Muschany

Currently, the federal income tax deduction for an individual on
his or her Missouri income tax is limited to $5,000 for an
individual taxpayer and $10,000 for combined taxpayers and to 50%
of the federal income tax for corporations.  This bill allows the
greater of $5,000 or 20% for 2009; the greater of $5,000 or 40%
for 2010; the greater of $5,000 or 60% for 2011; the greater of
$5,000 or 80% for 2012; and 100% of all federal income tax
liability for all tax years beginning January 1, 2013, to be
deducted from an individual's state income tax.  For corporate
income tax, the bill increases the federal income tax deduction
to 60% for 2009, 70% for 2010, 80% for 2011, 90% for 2012, and
allows full deductibility from state income tax of all federal
income tax liability for all tax years beginning January 1, 2013.

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