HB 2133 Summary

• Repeals 59 tax credit programs effective August 28, 2014, or by December 31, 2015, including neighborhood assistance, housing, business facility, enterprise zone, and various economic development credits

• Converts existing tax credits into tax deductions for taxable years beginning on or after January 1, 2014, allowing taxpayers to subtract credit amounts from Missouri adjusted gross income instead of offsetting tax liability

• Reduces Missouri's top individual income tax rate from 6% to 5.45% for taxable years beginning on or after January 1, 2017, and creates interim rate of 5.85% for 2014-2016

• Allows previously issued tax credits (issued before sunset dates) to be carried forward and redeemed over ten subsequent taxable years, subject to legislative review and approval of redemption estimates

• Establishes redeemable tax credit budget reporting requirements to track and monitor outstanding tax credit redemptions across all sunset programs