Missouri HB 204: Establishes tax credits for certain engineering degrees

Bill Text

FIRST REGULAR SESSION
HOUSE BILL NO. 204
103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE BROWN (149).
0468H.01I DANA RADEMAN MILLER, Chief Clerk
AN ACT
Torepealsection135.800,RSMo,andtoenactinlieuthereoftwonewsectionsrelatingtotax
credits for certain engineering degrees.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 135.800, RSMo, is repealed and two new sections enacted in lieu
2 thereof, to be known as sections 135.005 and 135.800, to read as follows:
135.005. 1. For the purposes of this section, the following terms shall mean:
2 (1) "Compensation":
3 (a) Payments in the form of contract labor for which the payer is required to
4 provide a federal tax form 1099 to the person paid;
5 (b) Wages that are subject to withholding tax imposed under sections 143.191 to
6 143.265 and paid to a part-time employee or full-time employee; and
7 (c) Any other salary or other remuneration.
8
9 "Compensation" shall not include employer-provided retirement, medical or health
10 care benefits, reimbursement for travel, meals, lodging, or any other expense;
11 (2) "Department", the Missouri department of economic development;
12 (3) "Qualified employer", a sole proprietorship, general partnership, limited
13 partnership, limited liability company, corporation, other legally recognized business
14 entity or public entity registered to do business in this state and whose principal
15 business activity involves the engineering sector;
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language.

16 (4) "Qualified institution", any public or private institution of higher education
17 that is accredited by a regional accrediting body or the engineering accreditation
18 commission of the accreditation board for engineering and technology (ABET);
19 (5) "Qualified program":
20 (a) A program that has been accredited by the engineering accreditation
21 commission of the accreditation board for engineering and technology (ABET) or a
22 regional accrediting body and that awards an undergraduate or graduate degree in
23 engineering; or
24 (b) A program that results in the awarding of a degree or certificate that
25 prepares the graduate for gainful employment with a qualified employer;
26 (6) "Qualified worker", any person newly employed on a full-time basis by or
27 first contracting with a qualified employer on a full-time basis on or after January 1,
28 2026, who has been awarded an undergraduate or graduate degree, or a technical
29 degree or certificate from a qualified program by a qualified institution;
30 (7) "State tax liability", any liability incurred by a taxpayer pursuant to the
31 provisions of chapter 143, exclusive of the provisions relating to the withholding of tax
32 as provided for in sections 143.191 to 143.265 and related provisions;
33 (8) "Tax credit", a credit against the tax otherwise due under chapter 143,
34 excluding withholding tax imposed under sections 143.191 to 143.265;
35 (9) "Taxpayer", any individual or qualified employer, as defined under this
36 section, subject to the state income tax imposed under chapter 143, excluding the
37 withholding tax imposed under sections 143.191 to 143.265;
38 (10) "Tuition", the amount paid for enrollment, program specific course fees,
39 and instruction in a qualified program that includes both amounts paid during
40 participation in a qualified program or tuition debt upon completion of a qualified
41 program. "Tuition"shallnotincludethecostofbooks,feesotherthanprogramspecific
42 course fees, or room and board.
43 2. (1) For all tax years beginning on or after January 1, 2026, a qualified
44 employer shall be allowed a tax credit against the qualified employer's state tax liability
45 for tuition reimbursed to a qualified worker.
46 (2) The tax creditmay be claimed only if the qualified worker has been awarded
47 an undergraduate or graduate degree or technical degree or certificate from a qualified
48 programwithinoneyearpriortoorfollowingthecommencementofemploymentwitha
49 qualified employer, and may be claimed each year thereafter that the qualified worker
50 remains employed or under contract up to the fourth year of such employment or
51 contract.
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52 (3) The tax credit shall be in an amount equal to fifty percent of the tuition
53 reimbursedtoaqualifiedworkerduringthetaxyearforwhichthetaxcreditisclaimed,
54 except that in no event shall the tax credit exceed fifty percent of the average annual
55 amount paid by a qualified worker for enrollment and instruction in a qualified
56 program, as determined by the department.
57 (4) The tax credit shall be applied against the qualified employer's state tax
58 liability after all other tax credits have been applied. Tax credits authorized by this
59 subsection shall not be transferred, sold, or assigned, and shall not