HCS SCS SB 71 -- INCOME TAXES

SPONSOR:  Stouffer (Icet)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Tax Reform
by a vote of 7 to 3.

This substitute establishes the Mentally Retarded and
Developmental Type Disability Care Provider Tax Credit Program
which, beginning January 1, 2010, authorizes an income tax credit
equal to 50% of the amount of an eligible donation given to a
qualifying developmental disability care provider.  To qualify
for the credit, a care provider must apply for the tax credit to
the Department of Social Services and forward a payment equal to
the value of the tax credit.  The credit is not refundable but
can be carried forward four years or transferred.

The substitute also reduces individual income tax rates for tax
years 2009 and 2010 by .5% with the maximum individual income tax
rate reduced from 6% to 5.5%.

The provisions regarding the tax credit for donations to
developmental disability care providers will expire six years
from the effective date.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of
$463,382,877 in FY 2010, $463,300,000 in FY 2011, and $87,924 in
FY 2012.  No impact on Other State Funds in FY 2010, FY 2011, and
FY 2012.

PROPONENTS:  Supporters say that the credit will help bring in
donations for organizations that serve the developmentally
disabled.  Facilities get donors, apply for and buy tax credits
from the state, and then give the credits to their donors.  The
most vulnerable in our society will benefit from this credit.
The donor gets a federal deduction for the donation and a state
income tax credit for 50% of the donation.   The credit
encourages large donations.

Testifying for the bill were Senator Stouffer; Raymond Kenison,
Missouri Baptist Children's Home; and Missouri Association of
Rehabilitation Facilities.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:26 am