MO SB496

Adds new section 143.022 to Missouri law creating a deduction for individual taxpayers' business income from their Missouri adjusted gross income.

Phases in the deduction over five years: 10% for tax years 2014-2015, 20% for 2015-2016, 30% for 2016-2017, 40% for 2017-2018, and 50% for tax years 2018 and after.

Defines "business income" as Missouri source net profit from business under the Internal Revenue Code and partnership income, excluding employee compensation and guaranteed payments.

For partnerships and small corporations, allows shareholders and partners to claim the deduction proportional to their ownership share on the last day of their tax period.