MOScholars: Tax Credits


Tax Credits image

Under the guidelines established by the Missouri General Assembly in 2021, MOScholars tax credits may be awarded to individuals and businesses that file a Missouri income tax return and make an eligible contribution to a certified educational assistance organization (EAO). These private contributions for tax credits fund scholarship accounts for students with Individual Education Plans (IEPs) and students living in low-income households.

A MOScholars tax credit is equal to 100% of an eligible donation, not to exceed 50% of the donor’s state tax liability for the tax year the credit is claimed. MOScholars tax credits may be carried forward for four (4) subsequent tax years. The tax credit is not sellable, transferrable, or refundable.

For 2022, $25 million in MOScholars tax credits are available.

Donations will be accepted beginning July 1, 2022.

Donors will reserve tax credits through the MOScholars online system, then make a contribution to the specified EAO. The contribution will be used to fund scholarships, and the donor will receive a tax credit that can be used to offset their Missouri tax liability under sections 143 and 153.

The certified EAO is responsible for accepting eligible contributions and submitting supporting documentation from eligible donors, then providing donors with a State Treasurer's Office-approved receipt for the contribution.

Eligible donors to the MOScholars program include any of the following that files a Missouri income tax return and is not a dependent of any other taxpayer:

  • An individual subject to state income tax;
  • An individual, firm, partner in a firm, corporation or shareholder in an S-Corp doing business in the state and subject to state income tax; and,
  • An express company that pays an annual tax on its gross receipts in Missouri under chapter 153.

Eligible contributions are monetary donations of $500 or more, including:

  • Checks drawn on a US banking institution;
  • Money orders;
  • Electronic funds transfers.
  • For 2022, $25 million in MOScholars tax credits are available.

Eligible donors to the MOScholars program include any of the following that files a Missouri income tax return and is not a dependent of any other taxpayer:

  • An individual subject to state income tax;
  • An individual, firm, partner in a firm, corporation or shareholder in an S-Corp doing business in the state and subject to state income tax; and,
  • An express company that pays an annual tax on its gross receipts in Missouri under chapter 153.
  • This program is still under development. Once launched, EAOs may begin accepting donations.
  • Eligible contributions are monetary donations of $500 or more, including:
    1. Checks drawn on a US banking institution
    2. Money orders
    3. Electronic funds transfers
  • The tax credit is equal to 100% of an eligible donation, not to exceed 50% of the donor’s state tax liability for the tax year the credit is claimed.
  • MOScholars tax credits may be carried forward for four (4) subsequent tax years.
  • The tax credit is not sellable, transferrable, or refundable.