MO HB1771

Taxpayers whose income tax balance is due solely because of a tax credit limit denial are exempt from additions to tax, penalties, and interest on that amount

Taxpayers must pay the balance or establish Department of Revenue-approved payment arrangements within 60 days of receiving notice of the credit denial to qualify for the exemption

"Tax credit limit denial" is defined as denial of a tax credit to an otherwise qualified taxpayer due to insufficient funds, appropriations, or the annual cap on that credit being reached

Taxpayers who fail to comply with approved payment arrangements become liable for all additions to tax, penalties, and interest as if the exemption never applied

Applies only to income tax balances due arising on or after August 28, 2026