143.175. Military personnel, reserves and inactive duty training, deduction, amount.

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143.175. Military personnel, reserves and inactive duty training, deduction, amount. — 1. For all tax years beginning on or after January 1, 2020, for purposes of calculating the Missouri taxable income as required under section 143.011 , a percentage of the income received by any person as salary or compensation:

(1)In performance of inactive duty for training

(IDT)of the National Guard or annual training status

(AT)of the National Guard;

(2)In reserve components of the Armed Forces of the United States; or

(3)For all tax years beginning on or after January 1, 2025, in the form of a bonus from the National Guard or a reserve component of the United States Armed Forces for joining, reenlisting, or for any other reason;

and to the extent that such income is included in the federal adjusted gross income, may be deducted from the taxpayer's Missouri adjusted gross income to determine such taxpayer's Missouri taxable income. If such person files a combined return with a spouse, a percentage of any military income received while engaging in the performance of National Guard or reserve military duty may be deducted from their Missouri combined adjusted gross income. Such military income shall be deducted as follows:

(a)For the tax year beginning on or after January 1, 2020, twenty percent of such military income;

(b)For the tax year beginning on or after January 1, 2021, forty percent of such military income;

(c)For the tax year beginning on or after January 1, 2022, sixty percent of such income;

(d)For the tax year beginning on or after January 1, 2023, eighty percent of such income;

(e)For all tax years beginning on January 1, 2024, and thereafter, one hundred percent of such income.

2. Notwithstanding the provisions of this section or any other provision of law to the contrary, the deduction authorized by this section shall not apply to compensation received while engaging in civilian federal service, including civil service positions requiring the wearing of military uniform and military affiliation.

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(L. 2018 S.B. 573, A.L. 2024 S.B. 912)