Homestead Disaster Tax Credit (HDC) (Section 135.445)

The Homestead Disaster Tax Credit (HDC) was created through Senate Bill 3 during the 2025 Special Session. Senate Bill 3 is currently facing a constitutional challenge before the Missouri Supreme Court. Rather than hold tax returns until the court issues a decision, the Missouri Department of Revenue will continue to process and adjust valid tax returns without applying the HDC at this time.

  • If this adjustment results in a balance due, the department will issue a notice of adjustment. Customers will be instructed to pay the amount owed by April 15, 2026, to avoid penalties and interest.
  • If the Supreme Court upholds Senate Bill 3, the department will automatically adjust the return to allow the credit and will issue a notice of adjustment showing any resulting refund.
  • If Senate Bill 3 is ruled unconstitutional, no further adjustments will be made to 2025 returns. A letter will be sent to inform customers of this outcome.

Customers should continue to file their 2025 returns claiming the HDC. The legislation does not allow any new HDC credits to be authorized after October 15, 2026.

Purpose

The Homestead Disaster Tax Credit provides financial relief to Missouri individual residents who incurred an insurance deductible on their primary residence due to a qualifying disaster in 2025 (Section 135.445).

Eligible Applicants

  • You incurred an insurance deductible during the calendar year 2025 for damage to your primary residence (homestead).
  • The damage was caused by a disaster for which the Governor of Missouri requested a presidential disaster declaration in 2025. See Presidential Disaster Declaration section below.
  • The homestead was used for all tax and legal purposes.
  • You lived at your residence for more than six months prior to the disaster.
  • The insurance company is licensed in the state of Missouri.

Procedures to Claim the Credit

The individual taxpayer claiming the tax credit shall file a signed affidavit Form 5926 Homestead Disaster Tax Credit Affidavit with their individual income tax return, verifying:

  • Address including county of residence that suffered damage
  • Date the disaster occurred
  • Evidence the insurance deductible was incurred as a result of a claim paid under a homeowner’s or renter’s insurance policy issued by an insurance company licensed in Missouri.

The taxpayer should also attach the document provided by the insurance company and Form MO-TC Miscellaneous Income Tax Credits.

Benefit Number

The benefit number is created after you file your Missouri income tax return and redeem the HDC tax credit with the Department of Revenue. If you do not know the benefit number, use 122025. If any portion of the tax credit must be carried forward to the next tax year, the Department will send you a letter that includes the benefit number you should use on your future return.

Funding Limits

For the fiscal year ending on or before June 30, 2026, the Department of Revenue shall not redeem Homestead Disaster Tax Credits in an amount that exceeds $90 million. For all fiscal years beginning on or after July 1, 2026, and ending on or before June 20, 2055, the Department of Revenue shall not redeem Homestead Disaster Tax Credits in an amount that exceeds $45 million dollars.

Additional Tax Credit Information

No individual taxpayer shall be able to claim more than one tax credit for a tax year.
The tax credit is not refundable.
The tax credit can be transferred, sold, and assigned.
The tax credit can be carried forward to any of the taxpayer’s twenty-nine subsequent tax years or until the full amount of the tax credit is redeemed.

Authorization

No new Homestead Disaster Tax Credits shall be authorized after October 15, 2026.

Forms Required

Contact

Presidential Disaster Declaration

The current Major Disaster Declarations during Governor Kehoe’s term in office are:

For more information on the federal disaster declaration process, visit this link.

For additional resources and information about disaster recovery in Missouri, please visit recovery.mo.gov.