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Missouri House Bill 2111 Modifies Income Tax Calculations and Adjustments

Original title: INCOME TAX

Last action · May 15, 2026: Referred: Emerging Issues(H)Sponsors: Kathy Steinhoff and 1 other

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Would Do

House Bill 2111 modifies the calculation of by updating rules for additions and subtractions, including provisions for federal tax refunds, interest, net operating losses, and capital gains. The bill outlines specific deductions and reporting requirements administered through the Department of Revenue.

Why it matters

Taxpayers calculating must include or exclude specific federal deductions, interest types, and capital gains, affecting their overall state income tax liability.

Background
  • House Bill 2111 was introduced in the Missouri House of Representatives during the 2026 Regular Session by Representative Kathy Steinhoff. context

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

resident individuals

Taxpayers must adjust their federal adjusted gross income calculations based on new additions and subtractions required by the state.

Directly affected

farm owners

Farm owners selling or leasing land to beginning farmers are eligible for specific capital gains and income subtractions.

Key Facts

  • The bill repeals section 143.121, RSMo, and enacts a new section relating to Missouri adjusted gross income calculations.
  • Taxpayers must add certain federal income tax refunds, interest on governmental obligations, and specific deductions under federal code sections 168 and 172 to federal adjusted gross income.
  • Taxpayers may subtract interest on obligations of the United States and its possessions, certain prior year taxes, military combat zone income, and specific agricultural disaster program payments.
  • One hundred percent of retirement benefits received from service in the Armed Forces of the United States, reserve components, and the National Guard may be subtracted.
Show all 7 facts
  • Grants received for broadband internet expansion in underserved areas are one hundred percent substractable for tax years beginning on or after January 1, 2022.
  • Farm owners selling, leasing, or entering crop-share arrangements with beginning farmers may qualify for specific capital gains or income subtractions.
  • The Department of Revenue must prepare an annual report reviewing the costs and benefits of capital gain subtractions for sales of farmland to beginning farmers.

Frequently Asked Questions

What does House Bill 2111 change?
It modifies provisions relating to the calculation of by updating what must be added to or subtracted from a taxpayer's federal adjusted gross income.
Are military retirement benefits exempt from Missouri income tax under this bill?
Yes, one hundred percent of retirement benefits received from service in the Armed Forces of the United States, reserve components, and the National Guard are subtracted from federal adjusted gross income.

What else do you want to know?

News Coverage

Coverage by outlet perspective10 articles
Lean Left 1Center 8Right 1

Bias ratings based on AllSides / Media Bias/Fact Check

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

4 actions
  1. May 15, 2026HouseCommittee
    Referred: Emerging Issues(H)
  2. Jan 8, 2026HouseFloor
    Read Second Time (H)
  3. Jan 7, 2026HouseIntroduced
    Read First Time (H)
  4. Dec 2, 2025HouseIntroduced
    Prefiled (H)

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Expansion of Tax Subtractions for Agriculture and Military

The bill consolidates various adjustments to income tax, emphasizing tax relief for military retirees, broadband grants, and beginning farmer land transactions.

Sources

Analysis Score

0–100
  • Significance60
    How much this matters to a regular citizen
  • Controversy25
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz20
    Current news / social attention level

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