SB 1291 — Modifies provisions relating to an income tax deduction for certain farmers

SECOND4319S.02C REGULARSENATE SESSIONCOMMITTEE SUBSTITUTE FOR SENATE BILLNO.BILL NO.

1291 103RDAN GENERALASSEMBLYACT INTRODUCEDTo BYrepeal SENATORsection HUDSON.143.121, RSMo, and to enact in lieu thereof one new section relating to an income tax deduction for certain farmers.

4319S.01I KRISTINAMARTIN, Secretary ANACT Torepealsection143.121,RSMo,andtoenactinlieuthereofonenewsectionrelatingtoanincome tax deduction for certain farmers.

The amount added pursuant to this subdivision shall not include any amount of a federal income tax refund attributable to a tax credit reducing a taxpayer's federal tax liability pursuant to Public Law 116- 136 or 116-260, enacted by the 116th United States Congress, for the tax year beginning on or after January 1, 2020, and ending on or before December 31, 2020, and deducted from Missouri adjusted gross income pursuant to section 143.171.

The amount added under this subdivision shall also not include any amount of a federal income tax refund EXPLANATION-Matterattributable enclosedto ina bold-facedtax bracketscredit [thus]reducing ina thistaxpayer's billfederal istax notliability enactedunder andany isother intendedfederal law that provides direct economic impact payments to betaxpayers omittedto inmitigate financial challenges related to the law.COVID-19 pandemic, and deducted from Missouri adjusted gross income under section 143.171;

SB 1291 2 attributable to a tax credit reducing a taxpayer's federal tax liability under any other federal law that provides direct economic impact payments to taxpayers to mitigate financial challenges related to the COVID-19 pandemic, and deducted from Missouri adjusted gross income under section 143.171;

Section 172 of the Internal SB 1291 3 Revenue Code of 1986, as amended, other than the deduction allowed by 26 U.S.C.

For the purposes of this subdivision, an interest expense is considered paid or accrued only in the first taxable year SB 1291 4 the deduction would have been allowable under 26 U.S.C.

SB 1291 5 (3) The amount necessary to prevent the taxation pursuant to this chapter of any annuity or other amount of income or gain which was properly included in income or gain and was taxed pursuant to the laws of Missouri for a taxable year prior to January 1, 1973, to the taxpayer, or to a decedent by reason of whose death the taxpayer acquired the right to receive the income or gain, or to a trust or estate from which the taxpayer received the income or gain;

As used in this section, "combat zone" means any area which the President of the United States by Executive SB 1291 6 Order designates as an area in which Armed Forces of the United States are or have engaged in combat.

SB 1291 7 (11) For all tax years beginning on or after January 1, 2018, any interest expense paid or accrued in the current taxable year, but not deducted as a result of the limitation imposed under 26 U.S.C.

and SB 1291 8 (15) For all tax years beginning on or after January 1, 2026, the portion of capital gain on the sale or exchange of specie, as that term is defined in section 408.010, that are otherwise included in the taxpayer's federal adjusted gross income.

The taxpayer shall provide the department of SB 1291 9 revenue with proof of the amount of qualified health insurance premiums paid.

If implementation of the energy efficiency recommendations occurred during more than one year, the deduction may be SB 1291 10 claimed in more than one year, subject to the limitations provided under subdivision (2) of this subsection.

or SB 1291 11 c.

(d) "Taxpayer", any individual, trust, firm, partner in a firm, corporation, partnership, shareholder in an S corporation, or member of a limited liability company subject to the income tax imposed under this chapter, excluding withholding tax imposed under sections 143.191 to 143.265.

SB 1291 12 c.

SB 1291 13 (c) No taxpayer shall subtract more than twenty-five thousand dollars per tax year in total cash rent income received from the lease or rental of such farmland under this subdivision.

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