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SB 1608

SB 1608 - For all tax years beginning on or after January 1, 2026, this act authorizes a taxpayer to claim a tax credit in an amount equal to 100% of contributions made to eligible entities. Eligible entities are defined as non-for-profit organizations that operate a youth police initiative in an urban area in this state. Youth police initiatives are defined as programs conducted by eligible entities for the purpose of engaging at-risk youth and local police officers in activities and conversation to build trust and break down stereotypes between youth and police. Tax credits authorized by the act shall not be refundable, but may be carried forward for five tax years and may be transferred, sold, or assigned. The total amount of tax credits that may be authorized in a tax year shall not exceed $500,000. The Department of Public Safety shall maintain a list of all eligible entities, and shall update such list at least annually. A taxpayer shall submit evidence of contributions to the Department. This act shall sunset on August 28, 2032, unless reauthorized by the General Assembly. This act is identical to SB 845 (2026) and is substantially similar to HCS#2/HBs 1882 & 3097 (2026). JOSH NORBERG

2026 Regular Session

Missouri offers a 100% nonrefundable state tax credit for contributions to eligible urban youth-police initiatives, with a $500,000 annual cap and a six-year sunset.

Voted Do Pass S Economic and Workforce Development Committee
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WeVote Research Nonpartisan
Bill Summary · SB 1608

Overview

SB 1608 proposes a Missouri state tax credit program beginning in tax years that start on or after January 1, 2026. The credit would reward contributions to certain nonprofit "eligible entities" that operate youth police initiatives in urban areas, with the goal of fostering trust and reducing stereotypes between at-risk youth and local police.

Main purpose and intent

  • Create a nonrefundable state tax credit equal to 100% of eligible contributions to qualifying nonprofits.
  • Support youth-police engagement initiatives in urban areas to build trust and reduce bias between youth and law enforcement.
  • Establish administration, annual accounting, and sunset provisions to govern the program.

Key provisions and changes

  • Eligible entities: Not-for-profit organizations that operate a youth police initiative in an urban area of Missouri.
  • Definition scope:
    • “Urban area” defined via U.S. Census Bureau urbanized area.
    • “Youth police initiative” means programs engaging at-risk youth and local police officers in activities and conversations to foster trust and break down stereotypes.
  • Tax credit amount: 100% of the taxpayer’s contribution to an eligible entity, applied against the taxpayer’s state tax liability (not refundable).
  • Carryforward and transferability:
    • Credits are nonrefundable but may be carried forward for up to five tax years.
    • Credits may be transferred, sold, or assigned.
  • Annual cap: The total credits authorized in any tax year may not exceed $500,000.
  • Administration and reporting:
    • Missouri Department of Public Safety (DPS) must maintain and publish a list of eligible entities, updated at least annually.
    • Taxpayers must submit evidence of contributions to the DPS on forms developed by the department, including:
    • Taxpayer name
    • Eligible entity name
    • Documentation from the entity showing the contribution amount
  • Rulemaking and compliance:
    • The DPS may promulgate rules to implement the section; rules must comply with applicable Missouri rulemaking requirements.
    • Provisions tied to chapter 536 (state rulemaking) apply, with the caution that rulemaking authority is nonseverable from the act.
  • Sunset and renewal:
    • Automatic sunset six years after the effective date (i.e., after 2026 + 6 years) unless reauthorized by the General Assembly.
    • The sunset provision means the program would terminate in a specified year unless extended.

Who is affected

  • Taxpayers: Individuals, partnerships, and corporations subject to Missouri income tax who make qualifying contributions to eligible entities.
  • Eligible entities: Not-for-profit organizations operating urban youth police initiatives; they receive eligible contributions and must appear on the DPS-maintained list.
  • Missouri Department of Public Safety: Responsible for administering the program, maintaining the eligible-entity list, and processing contribution evidence for credit redemption.

Procedural and timeline aspects

  • Program start: Tax years beginning on or after January 1, 2026.
  • Annual reporting: DPS to publish updated eligible-entity list at least annually.
  • Redemption process: Taxpayers must submit contribution evidence to the DPS on department forms; the DPS then reconciles credits against tax liability.
  • Cap and carryforward: $500,000 annual credit cap; unused credits carry forward up to five years and may be transferred/sold.
  • Sunset: Automatic termination six years after the effective date (unless reauthorized), with formal sunset mechanics consistent with Section 23.253 of the Missouri sunset act.

Notable details

  • The credit is nonrefundable, meaning it can reduce tax liability to zero but will not generate a refund.
  • The program permits transfer/sale of credits, adding flexibility for taxpayers and potential third-party facilitation.
  • The bill is identical or substantially similar to other related measures (SB 845; HCS#2/HBs 1882 & 3097) in the 2026 session.

Potential impact

  • Encourages private support for urban youth-police engagement programs.
  • Provides a straightforward, dollar-for-dollar incentive to contribute, potentially increasing funding for eligible initiatives.
  • Limits annual exposure to the state budget through a $500,000 cap, requiring nonprofits to diversify funding sources.
  • Creates a time-limited program, contingent on future reauthorization by the General Assembly.

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

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