MO SB15

Repeals and replaces section 143.171, RSMo relating to state income tax deductions for federal income tax liability.

For tax years January 1, 1994 through December 31, 2011, individual taxpayers may deduct federal income tax liability up to $5,000 (single return) or $10,000 (combined return); corporate taxpayers may deduct 50% of federal liability.

For tax years beginning January 1, 2012 and forward, both individual and corporate taxpayers may deduct their full federal income tax liability under Internal Revenue Code Chapter 1.

All deductions are calculated after reduction for credits except federal estimated tax payments, federal tax overpayments, and specific IRC sections (31, 27, and 34).

Allows deduction of previously unpaid federal tax liabilities from prior years if paid or accrued in later years, to the extent they would have been deductible in the original year.