The Republican-led Missouri Legislature has passed a bill to cut the corporate income tax rate from 6.25 percent to 4 percent.
House lawmakers gave the bill final approval in a 96-42 vote Friday, just hours before the 6 p.m. deadline to pass bills.
The 2.25 percent tax cut for businesses would take effect in January 2020 if made law. To offset the revenue loss, the proposal would change how multistate corporations can calculate their taxable income.
The Republican-led Legislature earlier Thursday also passed a bill to cut the current 5.9 percent individual income tax rate for most Missourians to 5.5 percent in January 2019.
Individuals' income tax rate would gradually drop to 5.1 percent if the state meets revenue targets. Federal tax deductions would be scaled back to make up for the loss in revenue.