Authorizes a tax credit for certain volunteer drivers
Summary
HB1236 creates a new Missouri income tax credit for certain volunteer drivers beginning with tax years on or after January 1, 2026. A taxpayer may claim a credit equal to the IRS standard business mileage rate for qualified transportation provided as a volunteer driver for a qualified 501(c)(3) organization. The bill defines key terms such as qualified organization, qualified transportation, taxpayer, and volunteer driver, and specifies that reimbursed miles or miles already used for another tax benefit cannot also generate this credit.
The credit is capped at $3,000 per taxpayer per year, adjusted annually for inflation, and is nonrefundable and nontransferable, though unused credits may be carried forward for up to three years. The total statewide amount of credits is limited to $1 million per fiscal year, also inflation-adjusted. The Department of Revenue is authorized to adopt rules to administer the program, and the section is subject to Missouri’s sunset law, automatically expiring on December 31, 2031 unless reauthorized.
Impact
The bill would add a new section to Chapter 135, RSMo, creating a state tax expenditure that reduces income tax liability for eligible volunteer drivers and indirectly supports nonprofit transportation services. It affects taxpayers subject to Missouri income tax under Chapter 143, while excluding withholding tax, and it limits the credit’s use by preventing double benefits for the same miles. It also gives the Department of Revenue rulemaking authority and establishes a sunset date, meaning the program would be temporary unless renewed by the General Assembly.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the overall sentiment appears supportive and straightforward, with the bill framed as a targeted incentive for volunteer service. The measure’s structure suggests an effort to encourage charitable transportation without creating an open-ended fiscal obligation, as shown by the per-taxpayer cap and statewide annual cap. No opposing arguments are documented in the provided context.
Contention
The main policy issues likely concern the fiscal cost of the credit, the fairness of subsidizing volunteer mileage through the tax code, and whether the benefit is sufficiently targeted to nonprofit transportation needs. Potential points of contention include the $1 million annual statewide cap, the $3,000 individual cap, and the exclusion of reimbursed or otherwise deducted miles, which may limit who can benefit. Because no committee transcript or vote history is provided, no specific legislators, organizations, or formal objections can be identified.