MO HB1606

Establishes the Missouri Earned Income Tax Credit equal to 20% of the federal earned income tax credit for resident individuals, effective for tax years beginning January 1, 2012.

Credit is applied against Missouri state income tax liability after other credits and is refundable if the credit amount exceeds the taxpayer's tax liability.

Married filing separately taxpayers may elect to apply the credit to one spouse's liability, split it evenly, or allocate it as chosen.

Department of Revenue must proactively identify and notify eligible taxpayers who may qualify for the credit using available data from federal sources and prior tax returns.

Department shall contract with nonprofit organizations to outreach to eligible taxpayers including non-English speakers, elderly, tenants, and low-income individuals unlikely to claim the federal credit; program sunsets after 6 years unless reauthorized.