MO House considers tax credit for hiring ex-offenders, individuals with disabilities

Updated: Feb. 2, 2016 at 9:25 AM CST
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MISSOURI (KFVS) - A Missouri lawmaker is pushing for a tax deduction for certain small businesses based on who they hire.

Rep. Michele Kratky's (D- St. Louis City) bill would allow a tax deduction for small business that who hire an individual who is disabled or who was recently discharged from a correctional facility.

The deduction would equal $5,000 for each qualifying disabled or ex-offender employee. However, the deduction could not to exceed $10

The deduction may be applied in each of the subsequent three tax years.

There are certain federal tax credits that can cover encourage employers to hire individuals from certain target groups who have consistently faced significant barriers to employment.

Requirements under this bill include:

Qualifying employee with disabilities

  • must work at least 25 hours per week,
  • be employed by the small business for at least one year,
  • who is at least 50% disabled as determined by the Social Security Administration or the Department of Veterans Affairs, or determined to be disabled by the Division of Vocational Rehabilitation and is participating in the division's job placement program.

Qualifying ex-offender

  • must work at least 40 hours per week,
  • be employed for at least one year,
  • discharged from a correctional facility during the 12 years preceding such employment.

If passed, this bill would take effect on Jan. 1, 2017.

A similar bill was introduced in 2015. A public hearing was completed, however, it was never placed on a perfection calendar.

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