# Mo. Rev. Stat. § 143.022: 143.022 Deduction for business income — business income defined — increase in ..

> Missouri · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_MO_C143_S143.022

## Section

- **Citation:** Mo. Rev. Stat. § 143.022
- **Heading:** 143.022 Deduction for business income — business income defined — increase in ..
- **Jurisdiction:** Missouri
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** MO Code / Chapter 143 / Section 143.022

## Text

143.022. Deduction for business income — business income defined — increase in percentage of subtraction, when. — 1. As used in this section, "business income" means the income greater than zero arising from transactions in the regular course of all of a taxpayer's trade or business and shall be limited to the Missouri source net profit from the combination of the following:

(1) The total combined profit as properly reported to the Internal Revenue Service on each Schedule C, or its successor form, filed;

(2) The total partnership and S corporation income or loss properly reported to the Internal Revenue Service on Part II of Schedule E, or its successor form;

(3) The total combined profit as properly reported to the Internal Revenue Service on each Schedule F, or its successor form, filed; and

(4) The total combined profit as properly reported to the Internal Revenue Service on each Form 4835, or its successor form, filed.

2. In addition to all other modifications allowed by law, there shall be subtracted from the federal adjusted gross income of an individual taxpayer a percentage of such individual's business income, to the extent that such amounts are included in federal adjusted gross income when determining such individual's Missouri adjusted gross income and are not otherwise subtracted or deducted in determining such individual's Missouri taxable income.

3. In the case of an S corporation described in section 143.471 or a partnership computing the deduction allowed under subsection 2 of this section, taxpayers described in subdivision (1) or (2) of this subsection shall be allowed such deduction apportioned in proportion to their share of ownership of the business as reported on the taxpayer's Schedule K-1, or its successor form, for the tax period for which such deduction is being claimed when determining the Missouri adjusted gross income of:

(1) The shareholders of an S corporation as described in section 143.471 ;

(2) The partners in a partnership.

4. The percentage to be subtracted under subsection 2 of this section shall be increased over a period of years. Each increase in the percentage shall be by five percent and no more than one increase shall occur in a calendar year. The maximum percentage that may be subtracted is twenty percent of business income. Any increase in the percentage that may be subtracted shall take effect on January first of a calendar year and such percentage shall continue in effect until the next percentage increase occurs. An increase shall only apply to tax years that begin on or after the increase takes effect.

5. An increase in the percentage that may be subtracted under subsection 2 of this section shall only occur if the amount of net general revenue collected in the previous fiscal year exceeds the highest amount of net general revenue collected in any of the three fiscal years prior to such fiscal year by at least one hundred fifty million dollars.

6. The first year that a taxpayer may make the subtraction under subsection 2 of this section is 2017, provided that the provisions of subsection 5 of this section are met. If the provisions of subsection 5 of this section are met, the percentage that may be subtracted in 2017 is five percent.

(L. 2014 S.B. 509 & 496, A.L. 2018 H.B. 2540, A.L. 2023 H.B. 202 merged with S.B. 138)

## Nearby sections

- [Mo. Rev. Stat. § 143.005 143.005 Sections 143.181 and 143.471 effective date.](https://www.frixlaw.com/law-library/statutes/STATE_MO_C143_S143.005.md)
- [Mo. Rev. Stat. § 143.009 143.009 Effective date.](https://www.frixlaw.com/law-library/statutes/STATE_MO_C143_S143.009.md)
- [Mo. Rev. Stat. § 143.011 143.011 Resident individuals — tax rates — rate reductions, when.](https://www.frixlaw.com/law-library/statutes/STATE_MO_C143_S143.011.md)
- [Mo. Rev. Stat. § 143.021 143.021 Tax determined by rates in section 143.011 — no tax on taxable income, when.](https://www.frixlaw.com/law-library/statutes/STATE_MO_C143_S143.021.md)
- [Mo. Rev. Stat. § 143.022 143.022 Deduction for business income — business income defined — increase in ...](https://www.frixlaw.com/law-library/statutes/STATE_MO_C143_S143.022.md)
- [Mo. Rev. Stat. § 143.031 143.031 Combined return of husband and wife.](https://www.frixlaw.com/law-library/statutes/STATE_MO_C143_S143.031.md)
- [Mo. Rev. Stat. § 143.041 143.041 Nonresident individual — inapplicable to out-of-state businesses and ...](https://www.frixlaw.com/law-library/statutes/STATE_MO_C143_S143.041.md)
- [Mo. Rev. Stat. § 143.051 143.051 Part-year resident.](https://www.frixlaw.com/law-library/statutes/STATE_MO_C143_S143.051.md)
- [Mo. Rev. Stat. § 143.061 143.061 Fiduciaries.](https://www.frixlaw.com/law-library/statutes/STATE_MO_C143_S143.061.md)
- [Mo. Rev. Stat. § 143.071 143.071 Corporations — inapplicable to out-of-state businesses, when.](https://www.frixlaw.com/law-library/statutes/STATE_MO_C143_S143.071.md)
- [Mo. Rev. Stat. § 143.081 143.081 Credit for income tax paid to another state.](https://www.frixlaw.com/law-library/statutes/STATE_MO_C143_S143.081.md)
- [Mo. Rev. Stat. § 143.091 143.091 Meaning of terms.](https://www.frixlaw.com/law-library/statutes/STATE_MO_C143_S143.091.md)
- [Mo. Rev. Stat. § 143.101 143.101 Definitions.](https://www.frixlaw.com/law-library/statutes/STATE_MO_C143_S143.101.md)
- [Mo. Rev. Stat. § 143.111 143.111 Missouri taxable income.](https://www.frixlaw.com/law-library/statutes/STATE_MO_C143_S143.111.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MO_C143_S143.022. Check the current official text before relying on it. Not legal advice.