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Bill Summary · HB 1774

Overview

HB 1774 (Missouri, 2026) proposes establishing a state income tax credit for certain charitable donations to local hospital foundations. The bill outlines eligibility, credit amount, and administration details intended to encourage philanthropy supporting local hospital infrastructure and services.

Purpose and Intent

  • The primary purpose is to incentivize charitable giving to local hospital foundations by providing a tax credit to individual and/or corporate donors.
  • The intent is to bolster hospital funding for facilities, equipment, and related community health initiatives through private philanthropy.

Key Provisions and Changes

  • Tax Credit Authorization:
    • Creates a new income tax credit against state income taxes for qualifying charitable donations made to local hospital foundations.
  • Eligibility and Qualified Donations:
    • Specifies criteria for donations that qualify for the credit (e.g., to accredited local hospital foundations meeting certain requirements).
    • May define limits on the types of foundations, recipient entities, or purposes of the donation (e.g., facilities, equipment, or community health programs).
  • Credit Amount and Limits:
    • Establishes the credit percentage or fixed amount per qualified donation.
    • May include annual or cumulative credit caps, per-donor limits, and/or statewide rollover provisions for unused credits.
  • Administration and Verification:
    • Outlines administration by the Missouri Department of Revenue or another state agency.
    • Requires documentation or receipts proving donation to an eligible local hospital foundation.
    • Potential minimum reporting or auditing requirements to ensure compliance.
  • Interaction with Other Credits:
    • Clarifies whether the hospital foundation tax credit can be claimed in addition to or in lieu of other charitable or business tax incentives.
  • Sunset or Review Provisions:
    • The bill may include a sunset clause or periodic review to assess effectiveness and fiscal impact (e.g., after a set number of years).

Who Would Be Affected

  • Individual and corporate taxpayers who make qualifying donations to local hospital foundations.
  • Local hospital foundations that meet eligibility criteria under the bill.
  • Hospitals and related health systems in Missouri that benefit from increased charitable giving.
  • State tax administrators responsible for credit administration and compliance monitoring.

Procedural and Timeline Details

  • Prefiled: December 1, 2025
  • First Reading: January 7, 2026
  • Second Reading: January 8, 2026
  • Referenced to Emerging Issues (H): May 15, 2026
  • Potential considerations: fiscal impact on state revenue, administrative feasibility, and alignment with existing charitable giving incentives.

Potential Impact

  • Fiscal: Possible reduction in state tax revenue corresponding to the value of the refundable or nonrefundable credits claimed, depending on credit design (nonrefundable vs. refundable).
  • Philanthropic: Increased donations to local hospital foundations, potentially expanding funding for capital projects, equipment, and community health programs.
  • Social/Health: Improved hospital capacity and services in communities served by local hospital foundations.

Note: The summary reflects the information provided in the bill’s description and action history. If enacted, official language would detail exact credit amounts, eligibility, and administration rules.

Compiled from official sources — confirm details with the bill’s official record.

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