Authorizes a tax credit for certain charitable donations
SB 817 would create a new Missouri income tax credit for individuals who donate to a qualifying local hospital foundation. The credit would equal 50% of the donation amount, subject to a maximum credit of $2,500 per taxpayer per year and an overall statewide cap of $2 million in credits annually. The credit would begin for tax years starting on or after January 1, 2026, would not be refundable, and any unused amount could be carried forward for up to three subsequent tax years. Taxpayers would have to file an affidavit with their return verifying the donation amount.
The bill defines a local hospital foundation as a 501(c)(3) foundation that provides financial relief for unpaid hospital bills at not-for-profit hospitals in the donor’s area, though the foundation could also use donations for programs, equipment, or other purposes aligned with its mission. The measure also specifies that the credit is a “domestic and social tax credit” under Missouri’s Tax Credit Accountability Act and is therefore subject to the reporting, administration, and sunset provisions in sections 135.800 to 135.830. It further directs the Department of Revenue to adopt rules to administer the credit and exempts certain information requests from section 105.1500.
In addition to creating the new credit, SB 817 amends section 135.800 to add the local hospital foundation charitable donation tax credit to the list of domestic and social tax credits. That means the new program would be folded into Missouri’s existing tax credit oversight framework, including accountability requirements and sunset review. The bill also includes a six-year sunset for the new program, with a possible 12-year extension if reauthorized by the General Assembly.
Because there were no committee transcripts or recorded votes provided, there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text and caption, the measure appears intended to encourage charitable giving to hospital foundations and support patients with unpaid medical bills, which suggests a generally pro-charity and pro-healthcare access policy goal. The absence of recorded discussion also means no specific stakeholder concerns are documented in the provided record.
The main points of potential contention are the fiscal cost of the credit, the $2 million annual cap, and whether the credit should subsidize donations to foundations that may use funds not only for bill relief but also for broader foundation purposes such as equipment or programs. Another possible issue is administrative complexity, including verification of donations and the interaction with existing tax credit rules and sunset provisions.
SB 817 would add a new section 135.640 to Missouri law and amend section 135.800 to classify the new credit as a domestic and social tax credit under the Tax Credit Accountability Act. It would create a new state income tax credit for qualifying donations to local hospital foundations, impose a statewide annual cap, require taxpayer verification, and subject the program to Department of Revenue rulemaking, reporting, and sunset review. The bill would affect individual income taxpayers, local hospital foundations, and the state’s general revenue by reducing income tax liability for eligible donors.
The available materials suggest a generally favorable policy direction, with the bill framed as a charitable donation incentive tied to hospital assistance and community support. No committee testimony or vote history is provided, so there is no documented opposition or amendment debate in the record. The bill’s structure, including a cap, nonrefundability, carryforward, and sunset, indicates an effort to balance encouragement of donations with fiscal oversight.
No explicit contention is documented in the provided transcripts or votes because none were supplied. Based on the bill text, likely areas of debate would include the cost to state revenues, whether the $2 million annual cap is sufficient or too generous, and whether donations should qualify when foundations may use funds for purposes beyond unpaid hospital bills. Administrative verification requirements and the inclusion of the credit within the state’s broader tax credit accountability system could also be points of concern for lawmakers or the Department of Revenue.