WeVote
Log In

Bill

Bill

HB 2679

Establishes the "First-Time Business Owner Savings Account Act" and authorizes a tax deduction for contributions to a savings account dedicated to starting a new business

2026 Regular Session Introduced by Michael Johnson

Creates First-Time Business Owner Savings Accounts with a state tax deduction to fund legitimate startup costs for new ventures.

Referred: Emerging Issues(H)
#banksandfinancialinstitutions #businessandcommerce #minorities #taxincentives #taxationandrevenue-general #taxationandrevenue-income
0
WeVote Research Nonpartisan
Bill Summary · HB 2679

Summary of HB 2679 (Session 2026, Missouri)

Purpose and intent

  • Establishes the First-Time Business Owner Savings Account Act.
  • Authorizes a state tax deduction for contributions made to a dedicated savings account intended to support starting a new business.
  • Aims to encourage individuals to save specifically for entrepreneurial ventures and reduce upfront startup barriers.

Key provisions and changes

  • Creation of First-Time Business Owner Savings Accounts (FTBO Savings Accounts):
    • Eligible account type designated for individuals planning to start a new business.
    • Savings held in these accounts are intended to fund startup costs, equipment, inventory, licenses, or other legitimate business startup expenses.
  • Tax deduction for contributions:
    • Individuals can claim a state income tax deduction for contributions to their FTBO Savings Account.
    • The bill specifies deduction amounts, limits, or caps (exact figures not provided in the summary; would be defined in the text of the bill).
    • Deduction mechanics likely mirror other state-subsidized savings mechanisms, with annual limits and potential carry-forward provisions.
  • Account management and eligibility:
    • Noting eligibility criteria such as first-time business ownership (no prior ownership in the specified period) or primary residence state requirements.
    • Rules governing account ownership, eligible contributors, and permissible uses of funds to ensure alignment with startup costs.
  • Qualified expenses:
    • Use of funds restricted to bona fide startup costs, as determined by the bill (e.g., business plan development, equipment, inventory, professional services, licensing).
    • Possible penalties or repayment provisions if funds are misused or if the business does not commence.
  • Administrative details:
    • Procedures for banks or financial institutions to offer FTBO Savings Accounts.
    • Oversight, reporting, and compliance requirements to the state tax authority.
    • Potential coordination with the Department of Revenue or equivalent to administer the deduction.

Who would be affected

  • Individual residents considering starting a new business who choose to save specifically for startup costs.
  • Taxpayers eligible for the deduction when contributing to FTBO Savings Accounts.
  • Financial institutions that would offer and manage FTBO Savings Accounts.
  • The state tax authority responsible for administering the deduction and ensuring compliance.

Procedural and timeline aspects

  • Introduced and prefiled in January 2026.
  • Read First Time (H) on January 5, 2026.
  • Read Second Time (H) on January 8, 2026.
  • Referred to Emerging Issues(H) on May 15, 2026, indicating consideration within a committee focused on emerging policy topics.
  • As a bill with an income tax deduction component, it would require conference alignment with the Senate, governor sign-off, and publication of final effective dates and any sunset provisions.
  • Effective date and any retroactivity (e.g., whether the deduction applies to tax years starting in a future year) would be specified in the enacted text.

Potential impact and considerations

  • Economic impact: Could incentivize new business formation by providing a targeted savings and tax benefit, potentially increasing entrepreneurial activity and local job creation.
  • Fiscal impact: Tax deduction would reduce state revenue by the amount of deductions claimed; the bill may include limitations or sunset provisions to manage cost.
  • Equity considerations: Depending on eligibility rules, the policy could benefit certain groups of aspiring entrepreneurs more than others; the bill may address issues such as income limits or age requirements.
  • Administrative considerations: Requires systems to track qualified expenditures, verify startup status, and ensure funds are used for legitimate startup costs.

Note: This summary is based on the bill title and the broad outline provided. For precise eligibility criteria, deduction amounts/limits, qualified expenses, compliance requirements, and the exact timeline, the full text of HB 2679 would be required once available.

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

Sign in to ask a question.