HB 932 -- TAX CREDIT FOR STAY-AT-HOME PARENTS

SPONSOR:  Grill

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Tax Reform by a vote of 9 to 0.

This bill authorizes the Motherhood/Fatherhood Stay-at-home Tax
Credit for a parent who stays at home to provide care for a child
up to 24 months of age.  Any married parent who was gainfully
employed before the birth or adoption of a child whose annual
salary was less than $100,000 is eligible for a tax credit equal
to 25% of the stay-at-home parent's annual salary in the year
before choosing to become a stay-at-home parent.  The tax credit
cannot be refunded, transferred, sold, or assigned but can be
carried forward up to three years.  The annual cumulative amount
of credits issued may not exceed $2 million.  The Department of
Revenue will establish rules to implement the provisions of the
bill.

The provisions of the bill will expire on December 31 six years
after the effective date.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of
$1,691,278 in FY 2008, $1,692,248 in FY 2009, and $1,693,216 in
FY 2010.  No impact on Other State Funds in FY 2008, FY 2009, and
FY 2010.

PROPONENTS:  Supporters say that the bill will strengthen the
family unit by assisting a parent who stays home with a newborn
child.  Giving parents a tax credit can lead to more parents
having an active role in parenting, which will benefit the family
unit and the entire community.  Parenthood is a privilege, and
raising and educating our children should be one of our top
priorities as a society.  Allowing fathers to take advantage of
this unique opportunity will be very beneficial.

Testifying for the bill were Representative Grill; Monica Viet;
Stacie Wilson; and Doug Wilson.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:20 am