MO SB146

Creates a phased business income deduction for Missouri corporations, starting at 10% of taxable income in 2011 and increasing by 10% annually until reaching 50% in 2015 and thereafter

Defines "business income" as income greater than zero from regular trade or business operations, including tangible property income when acquisition and disposition are integral to business operations, but excludes compensation as defined under Article IV of section 32.200

Allows individual taxpayers to subtract a percentage of business income from federal adjusted gross income using the same phased schedule as corporations (10% in 2011, increasing to 50% by 2015)

Permits shareholders of small corporations and partners in partnerships to claim the business income deduction apportioned according to their ownership percentage on the last day of their tax period