25-12 - Senate Bill 3 (2025) Tax Credits for Insurance Deductibles, December 1, 2025

Background

Senate Bill 3 was enacted in the First Extraordinary Session of 2025, containing provisions relating to a “Tax Credit for Homestead Damage”. Section 135.445 RSMo. of Senate Bill 3 allows a Missouri taxpayer to redeem a tax credit if the taxpayer su ered a loss to their property and had an insurance claim that was the direct result of a disaster for which a request for a Presidential Disaster Declaration was made by Missouri Governor Mike Kehoe, with a date of loss occurring between January 1st and December 31st 2025.

The amount of the tax credit is the amount of the deductible the taxpayer (policyholder) incurred, up to $5,000. While the tax credit is only available for those losses occurring in calendar year 2025, the tax credits are allowed to be “carried forward” for up to 29 tax years (until 2055), until the full amount of the tax credit is redeemed.

To claim the tax credit, taxpayers (policyholders) impacted by this year's weather events are required to submit certain information about their insurance claim to the Missouri Department of Revenue as a part of their tax return, as provided under Section 135.445 RSMo.

The Request

The Department recognizes that, for most claims, initial claim communications and settlement breakdowns have already been provided to policyholders. Having said that, the Department also recognizes that, due to the timing of this law’s passage, policyholders may not have retained such documentation or that it may have become misplaced since the time of their claim.

Accordingly, the Department is requesting that insurers, upon request of their policyholder(s), simply provide documentation of a few pieces of information regarding the claim so eligible policyholders can take advantage of this tax credit.

Insurers are only being asked to provide basic information about the claim, as specified below, for any homeowners, dwelling or renters insurance claim that occurred in calendar year 2025. This information will be submitted by the policyholder with their tax return to the Missouri Department of Revenue for verification of eligibility for the tax credit:

Claim Information Needed:

 Name of the Insurance Company: Full legal name of the insurance company issuing coverage.  NAIC Number: Please provide both the Group Code and Company Code assigned by the National Association of Insurance Commissioners (NAIC).  Policyholder’s Name(s): Full legal name(s) of the named insured(s) on the policy.  Policy Number: The unique identifier assigned to the insurance policy.  Address of Insured Property (“the Homestead”): Full street address of the property that sustained damage, including city, ZIP code, and county (if available).  Date of Loss: The calendar date on which the damage or loss occurred.  Deductible Amount: The dollar amount of any deductible(s) that were imposed or applied to the claim as required under the policy.

Insurers are asked to keep in mind that the intent of this request is only to assist Missouri residents in claiming this tax credit. The Missouri Department of Revenue needs this information to verify eligibility and the amount of the tax credit. Insurers are also advised that individual tax return information is confidential pursuant to Section 32.057 RSMo.

Insurers are not obligated to verify if the claim qualifies for the tax credit. For simplicity and ease of administration, insurers may simply provide this information upon request for any homeowners, dwelling, or renters claim that occurred between January 1, 2025, and December 31, 2025.

If a claims settlement breakdown containing all the information above was previously provided to the policyholder through the normal claims process, insurers are simply asked to provide a duplicate copy, if requested by the policyholder, to assist in the submission of their 2025 tax return. In such circumstances, there is no need to create new documentation.

The information outlined above should be provided in writing but can be delivered to policyholders via mail, email or other electronic means, consistent with applicable Missouri laws and policyholder preferences. Preferably, this information can be provided in a format that clearly identifies it as having been generated by the insurance company (e.g., on company letterhead).

Insurers are encouraged to use their best judgment and e orts to provide the information as requested herein.

Questions regarding this Bulletin may be directed to the Missouri Department of Commerce and Insurance at marketconduct@insurance.mo.gov.

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