Tax Credits

A new report found many families earn too little to qualify for the $2,000 federal benefit, which is tied to a family’s earnings and income taxes. Nearly a quarter of the Missouri children who fall into the gap are Black — higher than the state's overall population of Black kids.

New members added to a crucial committee at the last minute staved off an early death for part of Gov. Mike Parson’s special session agenda.

Both Senate bills now go to the House. In addition to the special session, the annual veto session ended on Wednesday, with no legislation overridden by lawmakers this year.

The bills the Missouri Senate advanced on Tuesday do contain an income tax cut and a series of agriculture tax credits, but do make significant changes compared to what Gov. Mike Parson initially requested.

The new program is now accepting both applications and donations.

Parson’s announcement comes after he vetoed a bill Friday authorizing a one-time, nonrefundable tax credit. On Thursday, he vetoed the $500 million allocated for the credit, foreshadowing a rejection of the credit itself.

The bill, passed by lawmakers during the recently completed 2022 legislative session, would provide a one-time, nonrefundable tax credit for those who paid income tax this year. However, Gov. Mike Parson has expressed concerns over the bill.

The budget includes raising the minimum pay for teachers, fully funding the state’s Medicaid program, including its expansion population, and income tax credits, as well as close to $3 billion in federal funding for projects across the state.

According to the state’s Department of Revenue, of the roughly 3.2 million Missourians who filed state income taxes, only around 1.4 million of them would receive their full tax credit amount.

Lawmakers and EV companies, like Rivan Automotive, say the provisions in the new law are the next step in promoting Illinois as "the Silicon Valley of EVs."