Authorizes a tax credit for certain charitable donations to local hospital foundations
Summary
HB 1774 would create a new Missouri individual income tax credit for donations made to qualifying local hospital foundations. The credit would apply to tax years beginning on or after January 1, 2027, and would equal 50% of the value of eligible donations, subject to a maximum credit of $2,500 per taxpayer per year and the taxpayer’s actual state income tax liability. Taxpayers would have to verify donations with an affidavit, and any unused credit could be carried forward for up to three subsequent tax years, but the credit would not be refundable, transferable, assignable, or saleable.
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 for people in need in the taxpayer’s local area, while also allowing donations to support related foundation programs, equipment purchases, or other purposes aligned with the foundation’s mission. The bill also sunsets the new program after six years unless reauthorized, and directs the Department of Revenue to adopt rules for administration and verification. It further amends Missouri’s Tax Credit Accountability Act to classify this new credit as a domestic and social tax credit, placing it within the state’s broader tax credit oversight framework.
Impact
HB 1774 would add a new section to Missouri law, section 135.640, and make conforming changes to section 135.800 so the new hospital foundation credit is treated as a domestic and social tax credit under the Tax Credit Accountability Act of 2004. In practical terms, it would reduce state income tax liability for eligible donors, create a new administrative process for verifying charitable contributions, and subject the program to the state’s tax credit cap and sunset provisions. The bill also includes a provision exempting certain information requests tied to administration and enforcement from section 105.1500, and it requires the Department of Revenue to promulgate rules.
Sentiment
Based on the available context, the bill appears to have been introduced as a targeted charitable giving incentive with no recorded committee debate or votes in the provided materials. The caption and structure suggest a generally supportive policy goal of encouraging donations to local hospital foundations and helping offset medical debt or related community health needs. Because there are no transcripts or vote tallies, there is no documented opposition or support beyond the bill’s introduction and referral.
Contention
The main policy questions raised by the bill are likely to center on the cost of the credit to state revenues, the fairness of creating a new targeted tax preference, and how broadly the term “local hospital foundation” should be interpreted in practice. Another possible point of contention is that the credit is capped at $2,500 per taxpayer and $2 million statewide per year, which may be viewed either as a prudent limit or as too restrictive to meaningfully increase donations. The bill’s exemption from certain information-disclosure rules and its reliance on Department of Revenue verification procedures could also draw scrutiny from those concerned about transparency and administrative burden.