SB 1336 - For all tax years beginning on or after January 1, 2027, this act authorizes a tax credit in the amount of $5,000 for a taxpayer that is a first-time home buyer purchasing an eligible blighted property, as described in the act. To be eligible, a taxpayer shall also enter into an agreement with the land clearance for redevelopment authority to use such property as a principal residence for at least two years following rehabilitation of the property, shall purchase the property within one year or contract for purchase within six months of applying for a tax credit, and shall meet certain income requirements as described in the act. The tax credit authorized by this act shall not be refundable or transferable, but may be carried forward for five years. This act shall sunset after six years unless reauthorized by the General Assembly. This act is identical to SB 404 (2025), SB 425 (2023), SB 719 (2022), SB 84 (2021), and HB 1588 (2020), and is substantially similar to SB 970 (2024). JOSH NORBERG

2026 Regular Session Introduced by Barbara Washington

Missouri bill creates state tax credit for home purchases to incentivize residential real estate transactions and improve housing affordability access.

Second Read and Referred S Economic and Workforce Development Committee

Legislative bill overview

SB 1336 creates a tax credit for Missouri residents who purchase certain homes, reducing their state tax liability based on their home purchase. The bill aims to incentivize homeownership by providing direct financial benefits to eligible buyers. Specific details about which homes qualify, credit amounts, and eligibility requirements are not provided in the available information.

Why is this important

Housing affordability and homeownership rates are significant policy concerns in most states. Tax credits can influence purchasing decisions and make homeownership more accessible to certain income groups. The design of this credit—particularly which homes qualify and income thresholds—will determine whether it primarily benefits first-time homebuyers, lower-income families, or has broader application.

Potential points of contention

Revenue impact and cost: Tax credits reduce state revenue; the fiscal impact depends on credit size and how many Missourians qualify, which could strain state budgets or require offsetting measures

Definition of "certain homes": Unclear criteria (price range, location, age, condition) could create equity concerns—favoring some regions or housing types over others

Targeting and fairness: Questions about whether credits should prioritize first-time buyers, income-limited purchasers, or apply universally, and whether existing homeowners receive equal benefit