Modifies provisions relating to taxation

CCS/HCS/SB 994 - This act modifies provisions relating to taxation. TAX CREDITS This act repeals several expired tax credits, including: 1) Distressed Areas Land Assemblage Tax Credit (Section 99.1205); 2) Charcoal Producers Tax Credit (Section 135.313); 3) Missouri Certified Capital Company Law (Section 135.500 to 135.529); 4) Tax credit for relocating business to distressed communities (Section 135.535); 5) Tax credit for investing in the transportation development of distressed communities (Section 135.545 and 135.546); 6) Qualified Beef Tax Credit (Section 135.679); 7) Qualified Equity Investment Tax Credit (Section 135.680 and 135.682); 8) Grape and Wine Producers Tax Credit (Section 135.700); 9) Alternative Fuel Vehicle Refueling Property and Electric Vehicle Recharging Property Tax Credit (Section 135.710); 10) Small Business Guaranty Fees Tax Credit (Section 135.766); 11) Enhanced Enterprise Zones Program (Section 135.950 to 135.973); 12) Unmet Health, Hunger, and Hygiene Needs of Children in School Tax Credit (Section 135.1125); 13) Higher Education Scholarship Donation Program (Section 173.196); 14) Tax Credit for purchasing dry fire hydrants or providing water storage for dry fire hydrants (Section 320.093); 15) Contributions to Innovation Centers Tax Credit (Section 348.300 to 348.318); 16) Missouri New Enterprise Creation Act (Section 620.635 to 620.653); 17) Missouri Quality Jobs Act (Section 620.1875 to 620.1890); and the 18) Innovation Campus Tax Credit (Section 620.2600). The act also makes several corresponding technical corrections to other tax credits in current law. These provisions are identical to HB 3329 (2026) and to provisions in SB 1188 (2026), and are substantially similar to HCS/HB 3092 (2026) and to provisions in HCS/SS/SB 889 (2026). DONATED FOOD TAX CREDIT Current law authorizes a tax credit for donations of cash or food made to certain organizations, with such credit scheduled to sunset on December 31, 2026. This act extends the sunset date to December 31, 2032. (Section 135.647) This provision is similar to SB 1082 (2026), HCS/HBs 2461, 2457 & 1782 (2026), and to a provision in SCS/SB 1547 (2026). MILITARY INCOME TAX DEDUCTION Current law authorizes an income tax deduction for income received for military service while the taxpayer serves in a combat zone. For all tax years beginning on or after January 1, 2027, this act modifies such deduction to apply to all military income, as defined in the act, regardless of duty status or filing status. (Section 143.121) This provision has a delayed effective date of January 1, 2027. These provisions are identical to HB 3294 (2026). BEGINNING FARMER INCOME TAX DEDUCTION Current law authorizes an income tax deduction for certain income received for the sale or lease of farmland to beginning farmers. This act adds a definition of "taxpayer" to such deduction. (Section 143.121) This provision is substantially similar to SCS/SB 1291 (2026), HB 3324 (2026), SB 682 (2025), and HB 1042 (2025), and to a provision in HCS/SS/SB 67 (2025), HCS/HB 828 (2025), and HCS/SS/SCS/SB 466 (2025). This provision has a delayed effective date of January 1, 2027. TAX RETURNS Current law provides that the date for filing income tax returns shall be the fifteenth day of the fourth month following the close of the taxpayer's taxable year. This act provides that such date shall be the date prescribed for the filing of federal tax returns. (Section 143.511) This provision is substantially similar to a provision in HCS/SS/SB 67 (2025), HCS/SS/SCS/SB 466 (2025), and HCS/HB 828 (2025). Current law requires withholding tax returns to be submitted electronically by employers with at least two hundred fifty employees. Beginning January 1, 2027, this act requires such electronic returns for employers with at least ten employees. (Section 143.591) This provision is identical to HB 1919 (2026) and is substantially similar to SB 1429 (2026). Current law requires a taxpayer to indicate on the taxpayer's return the school district in which the taxpayer is a resident. This act repeals such provision and instead requires the Department of Revenue to submit an annual report to the Department of Elementary and Secondary Education including the average Missouri adjusted gross income per return for the state, as well as the average Missouri adjusted gross income per return for each school district in the state. (Section 143.998) TAX DEFICIENCIES This act provides that if a taxpayer has a state income tax balance due resulting from the full or partial denial of a tax credit, the taxpayer shall not be held liable for any addition to tax, penalty, or interest on such amount of income tax due if the reason for the denial of a tax credit was the cumulative maximum amount of allowable tax credits being exceeded for the tax year, if the balance due is paid or payment arrangements have been made within sixty days of receiving notice of the balance due, and the addition to tax or penalty is not due to fraud or fraudulent intent. (Section 143.512) This provision is substantially similar to SB 1203 (2026) and HB 1771 (2026), and to a provision in HB 2754 (2026), HCS/SS/SB 67 (2025), HCS/SS/SCS/SB 466 (2025), and HCS/HB 828 (2025). This act provides that a taxpayer that has paid a deficiency and any interest, additions to tax, or penalties attributable to such deficiency that is subsequently found to be erroneous, regardless of whether such taxpayer has timely filed a protest with the Director of Revenue, shall be entitled to a refund in the amount of the deficiency and any interest, additions to tax, or penalties attributable to such deficiency that were paid by the taxpayer. Such refund shall be paid as provided in current law. (Section 143.621) This provision is identical to SB 1377 (2026). SEVERABILITY This act contains a severability clause. JOSH NORBERG