MO HB895

Resident individuals allowed a federal earned income tax credit under Section 32 of the Internal Revenue Code are eligible for a Missouri state tax credit equal to 20% of the allowable federal earned income tax credit, effective for taxable years beginning January 1, 2013

The state tax credit is applied against Missouri income tax liability after all other credits, with excess credit amounts refunded to the taxpayer; married couples filing separately may elect how to apply the credit between spouses

Department of Revenue must notify qualified taxpayers of potential eligibility using available data from the Internal Revenue Service, Treasury Department, and prior state tax returns

Department shall contract with nonprofit organizations to provide outreach to eligible but unlikely claimants, including non-English speakers, elderly individuals, tenants, and very low-income taxpayers

Department must prepare annual reports on tax credits issued, including total revenue expended, number of credits claimed, and average credit values by income ranges; program sunsets December 31 six years after enactment unless reauthorized by legislature