MO HB1423

Repeals and replaces section 148.064, RSMo, governing tax credit ordering and limits for banking institutions.

Establishes the order in which banking institutions apply tax credits: first against the bank tax under section 148.030(2), then against the bank tax under section 148.030(1), then against state income tax.

Creates an annual tax credit for banks equal to one-sixtieth of one percent of outstanding shares and surplus employed in Missouri (if surplus exceeds $1 million), applied as a dollar-for-dollar credit against bank tax or corporate income tax if bank tax is reduced to zero.

Allows S corporation banks and bank holding companies to pass through economic development, low-income housing, and neighborhood assistance tax credits to shareholders without reductions or limitations.

Authorizes a tax credit against Missouri bank taxes for any tax imposed by a foreign state on a Missouri bank lacking physical presence in that state, applied first against franchise tax then against corporate income tax.