MO SB612

For tax years January 1, 1994 through December 31, 2012, individual taxpayers may deduct federal income tax liability up to $5,000 (single return) or $10,000 (combined return) after reduction for most credits.

Beginning January 1, 2013, individual taxpayers are allowed a full deduction for federal income tax liability with no dollar cap, after reduction for most credits.

For tax years September 1, 1993 through December 31, 2012, corporate taxpayers may deduct 50 percent of federal income tax liability after reduction for most credits.

Beginning January 1, 2013, corporate taxpayers are allowed a full deduction for federal income tax liability with no percentage limitation, after reduction for most credits.

Certain federal tax credits are excluded from reduction calculations: federal estimated tax payments, overpayment credits, wages withheld, foreign taxes, and gasoline/fuel taxes under Internal Revenue Code Sections 31, 27, and 34.