MO HB2116

Restricts Missouri state income tax deductions for 529 plan contributions to only the Missouri deposit program or Missouri education program (MOST 529), eliminating deductions for out-of-state 529 plans

Grandfather clause allows individuals who claimed a 529 deduction before December 31, 2026, to continue claiming deductions for contributions to any qualified tuition program in subsequent tax years

Beginning January 1, 2027, new contributors will only receive tax deductions for contributions to Missouri-based 529 programs

Maintains existing deduction limits of up to $8,000 per taxpayer ($16,000 for married couples filing jointly) for qualifying contributions

Preserves tax-exempt status for assets and income of all Section 529 qualified tuition programs, including non-Missouri plans