MO SB40

Creates the Missouri Earned Income Tax Credit Act (Section 135.760), allowing Missouri residents who qualify for the federal earned income tax credit to claim a state credit equal to 20% of their federal credit amount, effective January 1, 2015

Credit is refundable, meaning taxpayers receive the difference as a refund if the credit exceeds their state tax liability; married couples filing separately may split the credit evenly or apply it to either spouse's liability

Department of Revenue must proactively identify taxpayers who may qualify but did not apply for the credit and notify them of potential eligibility, using IRS data, Treasury data, and prior state returns

Department must contract with nonprofit organizations to conduct outreach to eligible taxpayers, with preference given to groups serving low- and moderate-income communities and those with effective door-to-door outreach capabilities

Program automatically sunsets 6 years after the effective date unless reauthorized by the General Assembly; if reauthorized, it sunsets 12 years after reauthorization