HB813 creates the “Missouri Child Tax Credit Act” and adds a new section to Missouri’s tax code establishing a refundable state income tax credit for eligible resident taxpayers with qualifying dependent children. Beginning with tax years on or after January 1, 2026, eligible taxpayers may claim $7,200 for each qualifying child under age 7 and $3,600 for each qualifying child age 7 through 17. The bill defines qualifying children and qualifying taxpayers, limits eligibility by filing status and Missouri adjusted gross income, and caps the total number of credits a taxpayer may claim at six per year.
The bill also directs the Department of Revenue to create a monthly advance-payment program so taxpayers can receive the credit during the year rather than waiting until filing season. Taxpayers may apply for advance payments, and the department is authorized to reconcile overpayments, adjust payments based on updated information, and offset refunds against certain outstanding state debts. The bill requires taxpayers to provide identifying information for qualifying children, directs the department to notify potentially eligible taxpayers who did not claim the credit, and requires annual reporting on the program’s use and effectiveness. It also provides for annual inflation adjustments beginning in 2027, exempts the program from certain information-disclosure requirements, and includes a six-year sunset unless reauthorized.
In terms of state law, HB813 would add a new refundable tax credit program to Chapter 135 and interact with Chapter 143’s income tax system. It would expand the Department of Revenue’s administrative duties, create new rules for advance payments and reconciliation, and require annual CPI-based adjustments to income thresholds and credit amounts. The bill also specifies that the credit is in addition to federal child tax credits and that payments are not treated as income or resources for state benefit eligibility purposes to the extent allowed by law.
The overall sentiment reflected in the bill materials is supportive and policy-driven, with the measure framed as family tax relief and economic support for households with children. There are no recorded committee transcripts or votes in the provided context, so there is no documented floor or committee debate to indicate partisan division or formal opposition. The structure of the bill suggests an intent to make the credit broad, administrable, and responsive to inflation.
The main points of potential contention are fiscal cost, eligibility design, and administrative complexity. The refundable nature of the credit, the relatively large per-child amounts, and the advance-payment option could raise concerns about state revenue impact and program oversight. Eligibility limits based on income, residency, dependency status, and shared custody could also create disputes over who qualifies and how the Department of Revenue should resolve duplicate claims or changing family circumstances.
HB813 would create a new refundable Missouri child tax credit in Chapter 135 and require the Department of Revenue to administer advance monthly payments, eligibility verification, reconciliation, and annual reporting. It would affect resident individual income taxpayers with qualifying dependent children, expand administrative obligations for the department, and require annual inflation indexing of the credit and income thresholds beginning in 2027. The credit would be excluded from certain asset/income calculations for state benefit purposes, subject to applicable law, and would sunset after six years unless reauthorized.
The bill appears generally favorable in tone, presenting the child tax credit as a family-support and tax-relief measure. Because the provided context includes no committee transcript and no recorded votes, there is no documented opposition or amendment debate to indicate a divided reception. The available materials suggest the proposal is intended to be pro-family and administratively structured rather than controversial on its face.
Likely areas of contention include the fiscal cost of a large refundable credit, especially with advance monthly payments, and the administrative burden on the Department of Revenue to verify eligibility, manage duplicate claims, and reconcile overpayments. Another possible point of dispute is the income eligibility threshold and the size of the credit, which determine how broadly the benefit reaches families. Custody and dependency rules may also be contentious in cases where more than one taxpayer could claim the same child.