Low-income residents across Missouri could qualify for state tax credits under a proposal advancing in the Legislature.
The Missouri House voted 115-35 on Wednesday to provide the working poor with an income tax credit equal to 20 percent of any earned income tax credit claimed by the taxpayer on his or her federal income tax return.
The plan, which now heads to the Senate for further debate, would affect individuals with incomes below $14,800 and families, depending on size, with incomes of up to $53,900.
The sponsor, Rep. Michael Kelley, R-Lamar, said the estimated cost to the state of between $56 million and $62 million would be offset by increased economic activity.
The measure, which is similar to programs in 27 other states, had bipartisan support and would go into effect for the 2017 tax year.
Read more: St. Louis Post-Dispatch