MO HB1915

Resident individuals who claim a federal earned income tax credit under Internal Revenue Code Section 32 are allowed a state tax credit equal to 20% of that federal credit, effective for taxable years beginning January 1, 2010.

The state tax credit is applied against income tax liability under Chapter 143, with any excess amount refunded to the taxpayer; married filing separately taxpayers may allocate the credit between spouses or to one spouse.

The Department of Revenue must proactively identify eligible taxpayers and notify them of potential eligibility using available data from federal sources and prior state tax returns.

The Department must contract with nonprofit groups to provide outreach to eligible taxpayers including non-English speakers, elderly individuals, renters, and very low-income taxpayers, with preference given to organizations with strong community connections and proven outreach records.

The program automatically sunsets December 31, six years after the effective date unless reauthorized by the General Assembly; if reauthorized, it sunsets twelve years after reauthorization.