How you can use Missouri tax credits on your Missouri income tax return | Tax Credit Archives | Informative Articles | Missouri Tax Credits

Missouri tax credits are a great tool to use for reducing the cost of satisfying your Missouri tax liability. The Missouri transferable tax credits (Missouri Neighborhood Preservation tax credits, Missouri Historic Preservation tax credits, Missouri Film Production tax credits, Missouri Brownfield tax credits, etc.) make it very easy.

However, it is very important that you consult with your tax adviser to make certain that you can utilize Missouri tax credits in the manner you would like. The comments below are designed to provide some pointers with respect to utilizing Missouri tax credits, but in no way are a substitute for consulting with a professional tax adviser with experience in working with Missouri tax credits. The information contained herein does not constitute tax advice. Again, please consult with a tax adviser familiar with Missouri tax credits.

Many of the Missouri tax credits can be carried back, used in the current year and carried forward. The easiest way to determine these provisions is to look at the Missouri tax credit you are considering purchasing. The eligible utilization periods are printed on the face of the Missouri tax credit certificate. You should also be aware that Missouri tax credits must be used to satisfy the Missouri tax liability generated in the year of issue before they can be applied elsewhere.

For example, if you were to purchase 2008 Missouri historic credits in late 2009, those Missouri historic tax credits must first be applied to 2008, even if you have already paid all of your 2008 Missouri taxes. If your 2008 Missouri income tax liability was settled with the payment of cash, you would need to amend the 2008 Missouri income tax return (generating a refund) and use your newly purchased Missouri historic tax credits to satisfy the entire tax liability. Then and only then could you use any remaining Missouri historic tax credits to carry back to earlier years. You should note that once you are eligible to carry back the above-mentioned Missouri historic tax credits, you could apply them to any of the eligible years.

It is also very important to pay attention to the statute of limitations. Generally, an income tax period remains open three years from the date the tax return is filed. It is possible for a Missouri historic tax credit to be eligible to go back to an earlier year. However, if the statute is closed, the Missouri historic tax credit cannot be used in the earlier year.