Missouri – The Missouri House recently passed House Bill 2274 in a 100 to 50 vote. This bill would eliminate all of the state’s corporate income tax.
House Bill 2274 was designed to eliminate the state’s corporate income tax by gradually reducing the amount corporate businesses must pay until the tax payments are ultimately abolished in the year 2028.
The phased reduction schedule outlined in the House Bill is as follows:
- Beginning January 1, 2025: The taxable income of corporations will be reduced to 3% of Missouri taxable income.
- Beginning January 1, 2026: The taxable income of corporations will be reduced further to 2% of Missouri taxable income.
- Beginning January 1, 2027: The taxable income of corporations will be reduced to 1% of Missouri taxable income.
- For all tax years beginning on or after January 1, 2028: There will be no tax required from corporations in the state of Missouri.
The bill also states that once the corporate tax is fully eliminated, no new corporate income tax credits shall be claimed; however, corporations are allowed to redeem refundable tax credits properly claimed and issued before the corporate tax is eliminated.
This bill is sponsored by State Representative Travis Smith and must still go through the Missouri Senate before the bill is officially passed.
To read the full House Bill 2274 click here.
