ANNE C. WALKER, Chief Clerk
AN ACT
To amend chapter 135, RSMo, relating to tax credits for child care by adding thereto one new section relating to the same subject.
Section A. Chapter 135, RSMo, is amended by adding thereto one new section, to be known as section 135.341, to read as follows:
135.341. 1. A taxpayer who, but for the dependency test in subsection (e)(5) of section 21 of the Internal Revenue Code would be allowed a federal income tax credit pursuant to such section for the taxpayer's expenses for household and dependent care services necessary for gainful employment shall be allowed a credit against the tax otherwise due pursuant to chapter 143, RSMo, not including sections 143.191 to 143.265, RSMo, in an amount equal to one hundred percent of the amount which would have been allowed as a federal income tax credit pursuant to section 21 of the Internal Revenue Code, for all of the expenses paid by the taxpayer while the taxpayer's children were in the taxpayer's physical custody. No taxpayer who is eligible for a federal income tax credit pursuant to section 21 of the Internal Revenue Code shall be eligible for a credit pursuant to this section.
2. The tax credit allowed by this section shall be claimed by the taxpayer at the time such taxpayer files a return and shall be applied against the income tax liability imposed by chapter 143, RSMo, after all other credits provided by law have been applied. Where the amount of the credit exceeds the tax liability, the difference between the credit and the tax liability shall not be refunded to the taxpayer or carried forward into any subsequent taxable year.
3. Nonresidents shall not be eligible for the credit provided in this section. For purposes of this section "nonresident" means an individual who was not a resident of this state, as defined in section 143.101, RSMo, at the close of the taxable year for which the credit allowed by this section is applied.
4. The director of the department of revenue shall promulgate rules and regulations to administer the provisions of
this section. No rule or portion of a rule promulgated pursuant to the authority of this section shall become effective
unless it has been promulgated pursuant to the provisions of chapter 536, RSMo.
Missouri House of Representatives