MO HB76

Repeals the corporate franchise tax effective January 1, 2016, with a phase-out schedule from 2012-2015 that gradually reduces the tax rate from one-thirty-seventh of one percent to one-hundred-fiftieth of one percent on corporations with outstanding shares and surplus exceeding $10 million.

Freezes annual franchise tax liability for corporations between 2011-2015 at the amount owed for the taxable year ending on or before December 31, 2010, preventing increases during the phase-out period.

Provides a tax credit to banking institutions equal to one-sixtieth of one percent of outstanding shares and surplus employed in Missouri (if exceeding $1 million) to offset the loss of the corporation franchise tax credit.

Grants banks a 1.5 percent tax credit on net income and allows pass-through of tax credits to S corporation bank shareholders when the corporate franchise tax is repealed.

Extends the tax credit for financial institutions organized as limited liability companies or limited liability partnerships effective January 1, 2012.