SB 1341 - For all tax years beginning on or after January 1, 2027, this act authorizes a taxpayer to claim a tax credit in an amount equal to one hundred percent of qualified expenses incurred during the tax year for educating a qualified student in a nonpublic school, as such term is defined in the act, provided that no tax credit shall exceed the state adequacy target. Tax credits authorized by the act shall not be transferred, sold, or assigned, but are refundable. A tax credit shall not be issued for any qualified expenses paid for using a Missouri Empowerment Scholarship account. To be eligible for a tax credit, a taxpayer shall have enrolled a qualified student in a nonpublic school during the tax year, and shall not have enrolled a qualified student in the taxpayer's resident school district during the tax year for which the taxpayer is claiming a tax credit. Tax credits authorized by the act shall be claimed by the taxpayer at the time such taxpayer files a return. This act shall sunset on August 28, 2032, unless reauthorized by the General Assembly. This act is identical to SB 1163 (2026), SCS/SBs 195 & 53 (2025), and SB 867 (2024), and to a provision in HCS/HB 1935 (2024), and is substantially similar to HB 2449 (2026), HCS/HB 77 (2025), SB 729 (2024), HB 1911 (2024), and HB 2366 (2024). JOSH NORBERG

2026 Regular Session Introduced by Nick Schroer

SB 1341 creates a Missouri state tax credit for qualifying educational expenses, reducing taxpayer liability while potentially decreasing state revenue.

Second Read and Referred S Education Committee

Legislative bill overview

SB 1341 establishes a tax credit mechanism for taxpayers who incur specific educational expenses. The bill allows eligible individuals to reduce their state tax liability based on qualifying education-related costs. The precise scope of covered expenses, credit amount, and eligibility criteria would be detailed in the bill's full text.

Why is this important

Tax credits for educational expenses can affect household finances for families and students pursuing higher education or vocational training. This policy mechanism influences state tax revenue while potentially improving educational access or affordability. The real-world impact depends entirely on the credit's generosity and which expenses qualify.

Potential points of contention

Definition and scope of qualifying expenses: Disagreement likely over whether credits cover tuition only, or also books, fees, room and board, online education, K-12 private school, or vocational programs

Income eligibility limits: Debate over whether credits benefit middle-class families broadly or target lower-income households specifically, affecting tax equity concerns

State revenue impact: Fiscal conservatives may oppose the tax credit's cost to state coffers while education advocates may argue it's insufficient or too narrowly tailored