MO SB687

Allows resident individuals who claim a federal earned income tax credit under Section 32 of the Internal Revenue Code to receive a Missouri state tax credit equal to 20 percent of their allowable federal earned income tax credit for taxable years beginning January 1, 2014 or later.

Credit is applied against Missouri income tax liability after all other credits, with any excess amount refunded to the taxpayer; married couples filing separately may elect to apply the credit to either spouse's liability or divide it evenly.

Department of Revenue must determine eligibility for taxpayers who have not applied for the credit and notify qualified claimants of their potential eligibility using data from the IRS, U.S. Department of Treasury, and previous state income tax returns.

Department shall contract with nonprofit groups to provide notice of the credit to eligible taxpayers, prioritizing organizations with community connections and ability to reach non-English speakers, elderly, tenants, and very low-income taxpayers.

Department must prepare annual reports containing statistical information about credits issued, total revenue expended, number of credits claimed, and average credit values by income ranges; program automatically sunsets December 31 six years after enactment unless reauthorized.