Authorizes a tax credit for contributions to prevention resource centers
Summary
HB 3204 creates a new Missouri income tax credit for taxpayers who make qualifying contributions to prevention resource centers within the Missouri Department of Mental Health’s prevention resource center network. Beginning with tax years on or after January 1, 2027, eligible taxpayers may claim a credit equal to 70% of the value of cash, securities, or real property donated to a qualified center. The bill defines key terms, sets a minimum contribution threshold of $50, and limits the credit to the taxpayer’s state tax liability.
The credit is capped at $50,000 per taxpayer per year and at $2.5 million in total credits statewide each tax year. Unused credits may be carried forward for up to five years, but they are not refundable and may not be sold, assigned, or transferred. The Department of Mental Health must identify which facilities qualify as prevention resource centers, while the Department of Revenue, in coordination with Mental Health, must adopt rules to administer the program. The bill also includes reporting requirements, confidentiality protections for taxpayer information, an exception from certain information-disclosure provisions, and a six-year sunset unless reauthorized.
Impact
HB 3204 would add a new section to Chapter 135, RSMo, creating a targeted state income tax credit tied to charitable contributions for mental health prevention services. It affects taxpayers subject to Missouri income tax, qualified prevention resource centers, the Department of Mental Health, and the Department of Revenue. The bill would also interact with existing tax administration and confidentiality statutes, and it expressly exempts certain administrative information requirements from section 105.1500. Because the program sunsets after six years unless renewed, it would create a temporary tax incentive rather than a permanent change to Missouri tax law.
Sentiment
The available legislative context suggests generally favorable sentiment toward the bill, as reflected by its House committee status of “Reported Do Pass (H).” No committee transcript or recorded votes were provided, so there is no evidence of formal opposition in the supplied materials. The bill’s structure also indicates a policy preference for encouraging private donations to mental health prevention services through a tax incentive rather than direct appropriations.
Contention
The main points of potential contention are fiscal and administrative. Critics could question the $2.5 million annual statewide cap, the 70% credit rate, and the revenue impact of creating a new tax expenditure. Others may focus on the Department of Mental Health’s discretion to classify facilities as prevention resource centers and the reporting requirements imposed on those centers. There may also be concern about the exemption from certain disclosure requirements and the complexity of coordinating eligibility, verification, and credit allocation on a first-come, first-served basis when the statewide cap is reached.