Authorizes a tax credit to offset fees from the adoption of rescue animals
Summary
HB 2731 creates a new refundable individual income tax credit for Missouri taxpayers who adopt a qualified pet from an animal shelter. Beginning with tax years starting on or after January 1, 2027, a taxpayer may claim a credit equal to the “qualified amount” paid to the shelter for the adoption, including adoption fees and certain associated medical and administrative costs, up to $125 per adoption. A taxpayer may claim no more than two credits per year, and the total statewide amount of credits is capped at $500,000 annually.
The bill requires the animal shelter to provide a receipt that must be submitted with the tax credit claim, and it directs the Department of Revenue to establish the claim process by rule. The credit is refundable, cannot be transferred or carried forward, and is subject to recapture if the adopted animal is later returned, abused, released, sold, killed, fed to a pet carnivore, or otherwise not cared for, with limited exceptions for humane killing. The bill also allows the department to verify adoption status and related welfare information with shelters and animal control authorities, and it exempts certain records requirements from Missouri’s open records restrictions for administration and enforcement purposes. The credit program would sunset six years after its effective date unless reauthorized.
Impact
HB 2731 would add section 135.790 to Missouri’s tax code in chapter 135 and create a new refundable personal income tax credit tied to pet adoptions from animal shelters. It would affect individual taxpayers, animal shelters, and the Department of Revenue by establishing documentation, verification, and rulemaking requirements, while also imposing a statewide annual cap and a six-year sunset. The bill does not change business taxes or corporate tax law, but it would reduce state revenue to the extent credits are claimed.
Sentiment
Based on the bill caption and the absence of recorded committee debate or votes in the provided materials, the bill appears to be framed as a pro-adoption, animal-welfare measure with a generally positive policy purpose. The structure of the credit, the refundability, and the cap suggest an effort to encourage shelter adoptions while limiting fiscal exposure. No formal opposition or recorded controversy is shown in the available context.
Contention
The main potential points of contention are fiscal cost, administrative complexity, and enforcement. The $500,000 annual statewide cap and refundable nature of the credit may draw scrutiny from budget-minded legislators, while the Department of Revenue’s need to verify adoptions and possible animal welfare violations could raise privacy and implementation concerns. The recapture provisions are also notable because they condition the tax benefit on continued care of the animal and allow the department to review abuse or neglect records, which could be viewed as either necessary safeguards or burdensome oversight.