HCS HB 1661 -- INCOME TAX DEDUCTION FOR JOB CREATION BY SMALL
BUSINESSES

SPONSOR:  Scharnhorst (Hoskins)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Small
Business by a vote of 20 to 0.

This substitute clarifies that a small business formed as a sole
proprietorship, partnership, S-corporation, C-corporation,
limited liability company, limited liability partnership, or
other business entity can qualify for the income tax deduction
for job creation by a small business and allows any flow-through
entity to pass the deduction onto its members, shareholders, or
partners.

FISCAL NOTE:  Estimated Net Cost on General Revenue Fund of
Unknown in FY 2013, FY 2014, and FY 2015.  No impact on Other
State Funds in FY 2013, FY 2014, and FY 2015.

PROPONENTS:  Supporters say that the bill clarifies the intent of
House Bill 45 from last year.  The Department of Revenue has a
different definition of "small business" and has decided that the
deduction applies only to C-corporations.  The bill clarifies
that all business entities qualify.

Testifying for the bill were Representative Hoskins; National
Federation of Independent Business; Missouri Retailers
Association; and Missouri Grocers' Association.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
Last Updated March 27, 2012 at 8:26 am