What To Know About Charity Tax Benefits
Enhancing Food Pantry Tax Credits: HB 1730’s Bid to Alleviate Limitations
In a significant move, two Missouri House committees have unanimously approved bills supporting benevolent tax credit programs aimed at aiding those in need. Last week, the Special Committee on Public Policy overwhelmingly voted 6-0 to advance HB 1730, a pivotal piece of legislation sponsored by state Representative Phil Amato.
The proposed bill seeks to raise the cap on a crucial charity tax benefits program designed to incentivize Missourians to contribute to food pantries. Currently, the program, initiated in 2013, permits taxpayers to deduct half of their donations to food pantries, soup kitchens, or homeless shelters from their state taxes. However, the existing cap of $1.75 million has proven insufficient, with recent generous donations causing individuals to face penalties for exceeding the limit.
Representative Amato highlighted the issue, explaining how taxpayers who exceed the cap receive disallowance letters from the Department of Revenue, demanding remittance for the disallowed amount along with penalties and interest. The proposed bill aims to address this by increasing the cap to $3 million annually and extending the program’s expiration date from the end of 2026 to the end of 2030.
Simultaneously, the Ways and Means Committee took a crucial step in supporting families by hearing a bill last week to extend a diaper bank tax credit established in 2018. Currently allowing Missouri taxpayers to claim up to half of their donations to diaper banks against state taxes, up to $50,000, this essential credit is set to expire on August 28 of this year.
READ ALSO: $600 Per Connecticut Child: 38% Boost In Economy!
Extending Child Bank Tax Benefits: Mark Sharp’s Advocacy for Family Well-being
State Representative Mark Sharp is championing HB 2384, a bill aimed at extending the diaper bank tax credit until August 2030. Representative Sharp emphasized the far-reaching consequences of families lacking access to diapers, impacting the health of infants and limiting parents’ ability to secure childcare and employment.
The committee’s decisive 9-0 vote to advance HB 2384 reflects a consensus on the urgency and importance of supporting families in need. These legislative efforts underscore the commitment of Missouri lawmakers to address pressing social issues and provide tangible assistance to those facing challenges.
READ ALSO: Missouri Lawmakers Tackling Childcare Tax Credit: A Boost For Families Or Budget Strain?