MO HB1809

Allows Missouri residents who have not been enrolled as students for at least three consecutive calendar years to claim an income tax deduction for tuition costs when resuming their degree at a public two-year or four-year higher educational institution in Missouri.

Deduction applies to tuition for up to 30 credit hours needed to complete an associate or bachelor degree, but cannot exceed the average tuition charged by the University of Missouri for the same number of credit hours.

Taxpayer must provide proof of passing grades in each class completed after resuming enrollment and can claim the deduction for each tax year while enrolled and completing the final credit hours.

If the taxpayer fails to complete the final credit hours within three years of enrollment, all previously claimed deductions must be added back to the taxpayer's income tax liability.

Program automatically sunsets on December 31, 2021 (six years after effective date of January 1, 2015) unless reauthorized by the general assembly, with option for 12-year extension if reauthorized.