Authorizes tax credits for certain contributions to permanent endowment funds held by qualified community foundations
Summary
HB1181 creates the “Missouri Gives Tax Credit Act,” a new state income tax credit for contributions made as endowment gifts to permanent endowment funds held by qualified community foundations. Beginning with tax years on or after January 1, 2026, eligible taxpayers may claim a credit equal to 25% of a qualifying contribution. The bill defines the kinds of foundations and funds that qualify, requires the endowment to be permanent and used for charitable grants benefiting Missouri residents or Missouri-based charities and projects, and excludes donor-advised funds.
The credit is nonrefundable, cannot be carried forward, and cannot be assigned, transferred, sold, or otherwise conveyed. The bill also sets limits on the amount any one taxpayer may claim in a year, caps the amount of eligible contributions to any single foundation, and establishes a statewide annual cap on total credits. A portion of the statewide cap is reserved for smaller gifts of $25,000 or less, and taxpayers must submit receipts and affidavits with their returns. The Department of Revenue is authorized to issue rules, verify claims, and obtain donor information from foundations for administration and enforcement.
Impact
HB1181 would amend Missouri’s tax code in Chapter 135 by adding a new domestic and social tax credit tied to charitable endowment giving. It would affect individual taxpayers and business entities subject to Missouri income tax, as well as qualified community foundations that receive endowment gifts and must provide documentation to support credit claims. The bill also interacts with existing tax credit administration provisions, rulemaking authority, and Missouri’s sunset law by automatically expiring the program after six years unless reauthorized.
Sentiment
The available context shows no recorded committee debate or votes, so there is no documented public sentiment from hearings or floor action in the materials provided. Based on the bill text, the measure appears designed to encourage long-term charitable giving through community foundations, which suggests a generally supportive policy goal. However, the absence of transcripts or votes means support or opposition cannot be reliably characterized from the record provided.
Contention
No specific points of contention are documented in the supplied committee transcripts or voting history. Potential areas of debate inherent in the bill include the fiscal cost of the statewide $5 million annual credit cap, the allocation of 25% of credits to smaller gifts, the exclusion of donor-advised funds, and the administrative burden on the Department of Revenue and community foundations to verify contributions and disclose donor information. The bill’s nonrefundable, nontransferable structure and per-taxpayer and per-foundation limits may also be relevant to stakeholders concerned with fairness, access, and program design.