Missouri § 135.445 - Presidential disaster declaration — tax credit for insurance deductible on homestead — definitions — amount, procedure — rules.

§ 135.445. Presidential disaster declaration — tax credit for insurance deductible on homestead — definitions — amount, procedure — rules.

1.  As used in this section, the following terms mean:

(1)  "Homestead", real property occupied by an eligible individual taxpayer as their primary residence as a homeowner or dwelling as a renter for more than half the year and which is used for all tax and legal purposes in Missouri;

(2)  "Individual income tax liability", the liability incurred by an individual taxpayer under provisions of chapter 143;

(3)  "Individual taxpayer", an individual subject to income tax imposed under chapter 143;

(4)  "Insurance deductible", the amount of a homeowner's or renter's insurance claim for repair or replacement of damaged real or personal property on a homestead that a policyholder incurs when an insurance company remits payment on a covered loss;

(5)  "Tax credit", a credit against the individual income tax otherwise due under chapter 143, excluding withholding tax imposed by sections 143.191 to 143.265.

2.  For all tax years beginning on or after January 1, 2025, individual taxpayers shall be allowed a tax credit against their individual income tax liability for the insurance deductible incurred on a homestead during the 2025 calendar year as a direct result of a disaster for which a request for a presidential disaster declaration has been made by the governor in an amount up to five thousand dollars.

3.  The individual taxpayer claiming a tax credit under this section shall file a signed affidavit with their individual income tax return verifying:

(1)  The address, including county, of the homestead that suffered damage;

(2)  The date the disaster occurred; and

(3)  Evidence the insurance deductible was incurred as a result of a claim paid under a homeowner's or renter's insurance policy issued by an insurance company licensed in the state.

4.  (1)  A tax credit issued under this section is not refundable.  The tax credit can be transferred, sold, or assigned.

(2)  Tax credits authorized by this section may be carried forward to any of the taxpayer's twenty-nine subsequent tax years or until the full amount of the tax credit is redeemed, whichever is earlier.  For the fiscal year ending on or before June 30, 2026, the department of revenue shall not redeem tax credits authorized by this section in an amount that exceeds ninety million dollars.  For all fiscal years beginning on or after July 1, 2026, and ending on or before June 30, 2055, the department of revenue shall not redeem tax credits authorized by this section in an amount that exceeds forty-five million dollars in any given year.  Any taxpayer that is unable to redeem a tax credit in any tax year may carry forward such tax credit to a subsequent tax year.

5.  No individual taxpayer shall be able to claim more than one credit under this section for a tax year.

6.  The department of revenue and the director of commerce and insurance may promulgate rules and regulations necessary to implement the provisions of this section.  Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028.  This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after September 9, 2025, shall be invalid and void.

7.  No new tax credits shall be authorized pursuant to this section after October 15, 2026.

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(L. 2025 1st Ex. Sess. S.B. 3)

Effective 9-09-25