HCS HB 798 Summary

• Establishes tax credits for contributions to maternity homes (50-100% of contribution amount depending on fiscal year), diaper banks (50-100%), and pregnancy resource centers (50-100%), with maximum annual credit of $50,000 per taxpayer

• Reduces individual income tax rates starting January 1, 2026 to 4.7% flat rate, with potential additional reductions of up to 0.1% annually if revenue thresholds are met ($175-200 million above prior three-year average)

• Reduces corporate income tax rate from 4% to 3.75% for tax years beginning January 1, 2026

• Increases standard deduction for individual taxpayers by $4,000 starting January 1, 2026

• Adds 100% capital gains subtraction for individuals effective January 1, 2025, and repeals the Missouri Working Family Tax Credit Act provisions