Missouri lawmakers propose expanding tax credits for food pantry donors

SPRINGFIELD, Mo. (KY3) - Missouri lawmakers are proposing to expand tax credits for food pantry donors as pantries across the state work to keep shelves stocked amid declining donations.

Republicans State Rep. Phil Amato and State Sen. Jamie Burger introduced legislation to raise the donor tax credit from 50% to 70% and double the statewide credit pool to $3.5 million. Lawmakers return this week, and the governor will unveil his budget at the State of the State next week. That plan could determine whether this bill succeeds.

The tax credit already exists, but Amato said many donors hit the cap and don’t receive the full relief they expected.

“You think that you’re going to get half your money back, then you get a letter from the Department of Revenue saying ‘oh no, you’re not going to get $5,000 back, you’re only going to get $3,000 back, because we had to prorate it because we hit the cap,’” Amato said.

Katie Adkins with The Food Bank for Central and Northeast Missouri said donations are slipping as costs rise.

“It’s a really nice way to encourage additional funds to come in for food purchases, especially when food is more expensive for us to purchase right now,” Adkins said.

The food bank operates a warehouse full of food, toiletries, and other essentials prepared to serve Missourians in need. The food bank served more than 176,000 Missourians last year, a 3% increase from the prior year.

“We know that our neighbors are spending more on food, the food bank is spending more on food as well,” Adkins said.

Not everyone is convinced the proposal offers a long-term fix. Democratic leader State Rep. Ashley Aune questions what happens to tax credits if the state moves toward eliminating income taxes, a priority announced by Gov. Mike Kehoe.

“The republicans have built a patchwork of tax incentives across the state over the last 20-plus years, and if we eliminate the income tax, that eliminates most of the economic incentives that they have been passing over the last several decades,” State Rep. Aune said.

Aune said she does support expanding the food pantry tax credit.

Republicans argue that ending income taxes will help Missourians with rising costs, though it must be handled carefully.

“We’re passing tax incentives for people, we’re doing tax cuts, how is all of this going to work together? We’ve got a lot of hard work ahead of us,” said State Sen. Joe Nicola, a Republican from Kansas City.

Income tax makes up more than half of Missouri’s general revenue. General revenue is the money left to be spent; more money has already been allocated to specific state departments. About 60 percent of Missouri’s general revenue comes from income taxes.

The state’s budget is already shrinking, according to a new report from the Missouri Auditor that warns if spending doesn’t slow, the state could run out of general revenue by 2028.

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