3256L.01I                                                                                                                                                  D. ADAM CRUMBLISS, Chief Clerk



To amend chapter 143, RSMo, by adding thereto one new section relating to an income tax deduction for educational expenses.

Be it enacted by the General Assembly of the state of Missouri, as follows:

            Section A. Chapter 143, RSMo, is amended by adding thereto one new section, to be known as section 143.136, to read as follows:

            143.136. 1. As used in this section, the following terms mean:

            (1) "Deduction", an amount subtracted from the taxpayer's Missouri adjusted gross income to determine Missouri taxable income for the tax year in which such deduction is claimed;

            (2) "Dependent", any dependent of a taxpayer claiming a credit under this section who is enrolled in grades kindergarten through twelve in any elementary or secondary school or who is enrolled in any institution of postsecondary education located in this state;

            (3) "Taxpayer", any resident individual subject to the income tax imposed in this chapter.

            2. In addition to all deductions listed in this chapter, for all taxable years beginning on or after January 1, 2011, a taxpayer shall be allowed a deduction for all amounts paid for tuition for such taxpayer's dependents. The deduction amount shall be equal to the full amount expended for tuition in the taxable year for which the deduction is claimed.

            3. The department of revenue shall establish the procedure by which the deduction provided in this section may be claimed, and may promulgate rules to implement the provisions of this section. Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2010, shall be invalid and void.

            4. Under section 23.253 of the Missouri sunset act:

            (1) The provisions of the new program authorized under this section shall automatically sunset on December thirty-first six years after the effective date of this section unless reauthorized by an act of the general assembly; and

            (2) If such program is reauthorized, the program authorized under this section shall automatically sunset on December thirty-first twelve years after the effective date of the reauthorization of this section; and

            (3) This section shall terminate on September first of the calendar year immediately following the calendar year in which the program authorized under this section is sunset.