Authorizes a tax credit for certain volunteer drivers
Summary
SB 607 creates a new Missouri income tax credit for certain volunteer drivers who provide transportation for the benefit of a qualified 501(c)(3) organization. Beginning with tax years starting on or after January 1, 2026, an eligible taxpayer may claim a credit equal to the IRS standard business mileage rate for qualified transportation, subject to a maximum of $3,000 per year, adjusted for inflation. The credit is nonrefundable, cannot be sold or transferred, and may be carried forward for up to three subsequent tax years.
The bill defines key terms such as qualified organization, qualified transportation, volunteer driver, taxpayer, and tax credit, and it bars double benefits by disallowing credits for miles already reimbursed or used for another federal tax benefit. It also caps the total statewide amount of credits at $1 million per fiscal year, adjusted for inflation, and authorizes the Department of Revenue to promulgate implementing rules. The program is set to sunset on December 31, 2031, unless reauthorized, with additional sunset provisions tied to any future reauthorization.
Impact
SB 607 would add section 135.2555 to chapter 135, RSMo, creating a new state tax incentive tied to volunteer transportation services for nonprofit organizations. It would affect individual taxpayers, firms, partners, corporations, and S corporation shareholders subject to Missouri income tax, while excluding withholding tax. The bill would also impose administrative duties on the Department of Revenue to implement the credit and track the annual statewide cap, and it would interact with Missouri’s sunset law by automatically expiring unless renewed.
Sentiment
Based on the available bill caption and the absence of recorded committee debate or votes, the overall sentiment appears neutral to favorable toward encouraging volunteer service. The bill’s structure suggests a policy goal of supporting nonprofit transportation efforts through a targeted tax incentive, with built-in fiscal limits and a sunset date that may make it more acceptable to lawmakers concerned about long-term cost. No opposition or support was documented in the provided materials.
Contention
No committee transcript or vote record is available, so no specific objections were recorded. Potential points of contention inherent in the bill include the fiscal cost of the credit, the $1 million annual statewide cap, whether the credit should be refundable or transferable, and how to verify that claimed miles were truly unreimbursed volunteer transportation for a qualified organization. Another possible issue is the administrative burden on the Department of Revenue and the need to define and audit eligible mileage claims.