Modifies provisions of the "Missouri Empowerment Scholarship Accounts Program" tax credit
Summary
HB 3037 revises Missouri’s educational contribution tax credit program, which is tied to the Missouri Empowerment Scholarship Accounts Program. The bill repeals and reenacts section 135.713 to allow taxpayers who make qualifying contributions to educational assistance organizations after August 28, 2021, to claim a state tax credit equal to 100% of the contribution, subject to program limits. The credit may be used against most state income and business taxes, but not withholding taxes, and may not exceed 50% of the taxpayer’s state tax liability for the year. Unused credits may be carried forward for four years, and for contributions made on or after January 1, 2028, may also be carried back one year; the credits are not refundable and cannot be sold or transferred.
Impact
The bill would continue and modify the statutory framework in sections 135.712 to 135.719 and related scholarship-account provisions in sections 166.700 to 166.720. It sets a statewide annual cap of $75 million in credits, adjusted annually by the state treasurer based on changes in state aid for school districts, and directs the treasurer to allocate credits on a first-come, first-served basis with authority to reallocate unused amounts. It also prohibits donors from designating the student who receives a scholarship grant and preserves the program’s linkage to transportation funding conditions, under which new scholarships for newly qualified students cannot be awarded if certain pupil transportation appropriations fall below the required threshold.
Sentiment
Based on the bill’s committee outcome, the measure appears to have received favorable treatment in the House, as it was reported do pass. No recorded floor votes or committee transcript excerpts are provided, so there is no detailed public record here of debate, but the bill’s advancement suggests at least some legislative support for maintaining or expanding the scholarship tax credit structure.
Contention
The main policy tension is between supporters of school choice and scholarship tax credits, who would view the bill as preserving funding for educational assistance organizations, and critics who may be concerned about the fiscal cost to the state, the size of the annual credit cap, and the diversion of tax revenue from general public purposes. The bill’s first-come, first-served allocation system, the prohibition on donor designation of specific students, and the continued dependence on transportation-aid funding levels are also likely points of debate because they affect access, administration, and the pace at which new scholarships can be awarded.