New bill would let voters donate to anti-abortion centers instead of paying any taxes

The proposal would establish a 100% tax credit, up from 70%, and a $50,000 annual cap per taxpayer. The result: Nearly all Missouri households — except those with the highest incomes — could fully satisfy their state tax bill by redirecting their payment from the state to pregnancy centers.

The move comes four months after Missouri voters reversed one of the nation’s strictest abortion bans, and just as clinics have begun performing the procedure again after overcoming Republican obstacles.

Supporters of the bill, which last month cleared a key legislative hurdle in the state House, say it gives taxpayers more control over where their tax dollars go and allows them to support organizations that help pregnant women and provide alternatives to abortion. Alissa Gross, CEO of Resource Health Services, which runs four pregnancy resource centers in the Kansas City area, told the committee in written testimony that tax credits have led to a surge in donations to her organization and that a 100% tax credit could bring in even more.

“Our ability to impact more men and women for life as well as build healthy families has been substantial,” she said.

Critics argue the state’s support for pregnancy resource centers, also known as crisis pregnancy centers, diverts tax revenue away from essential services such as health care and public education and becomes a funding stream for anti-abortion advocacy. They say many centers do little to actually help women; instead, they say they merely discourage women from getting abortions.

“A 70 percent tax credit with no cap was excessive. A 100 percent tax credit is absurd,” Katie Baylie, a lawyer and reproductive rights advocate based in the Kansas City area, wrote in testimony submitted to the committee. “It is an insult to Missourians that our lawmakers are spending time even considering this bill.”

Experts in tax policy and philanthropy said a dollar-for-dollar tax credit — for any purpose — is rare and could be much costlier for the state than intended, especially if pregnancy centers actively promote it.

There is a big psychological difference for donors between a 100% tax credit and a 70% credit, the experts said. At 70%, donors still have to pay some taxes, but at 100%, there is no reason to make a donation less than their tax liability.

“I could imagine a possibility where there’s a big publicity campaign by these centers, or a viral campaign, and massive numbers of conservative Missourians decide to effectively defund state government in favor of these pregnancy resource centers,” said David Gamage, a professor of tax law and policy at the University of Missouri law school.

However, expansion of tax credits clashes with another Republican push to eliminate Missouri’s income tax altogether. Two proposals to replace it with a higher sales tax recently advanced in the state Senate, although it was unclear whether they could pass. If Missouri were to abolish state income taxes, tax credits would become meaningless.

The bill represents one more expansion of a measure Missouri lawmakers have been growing for several years. Until 2021, Missouri taxpayers who donated to pregnancy resource centers were able to claim a 50% tax credit for their donations, meaning for every $1,000 in donations, a taxpayer’s bill dropped by $500. That’s when an expansion approved by the legislature in 2019 took effect and raised the rate to 70%. That shifted more of the cost of those contributions to the state, since tax credits work by directly reducing the amount of money a taxpayer owes to the state. Unlike deductions, which lower taxable income, tax credits are a dollar-for-dollar reduction in tax liability. When these credits are redeemed, they prevent the state from collecting that revenue, effectively reducing the total income available for public services.

The legislature also removed a $3.5 million-per-year cap on the program and removed its expiration date.

At the time, the change drew little attention because it was tucked into the same legislation that created Missouri’s trigger law to ban abortion if Roe v. Wade were overturned — a move that dominated headlines. And there were few warnings about how much it could cost.

The bill’s official cost estimate, prepared by nonpartisan legislative oversight staff, projected only a modest increase in taxpayer expense. Raising the tax credit to 70% was expected to increase annual tax credits from $3.5 million to $4.9 million. That estimate assumed donations would remain steady.

But they didn’t. The program has grown significantly, with $11.8 million in tax credits authorized in the past year alone. Still, it remains a small fraction of Missouri’s overall budget; Gov. Mike Kehoe has proposed a $54 billion spending plan for next year.

Once again, legislative research is downplaying the potential impact on Missouri’s budget. The fiscal note for the bill accounts only for the jump from a 70% to a 100% tax credit, without considering the likely surge in donations that such an incentive would trigger — even though increasing giving is the entire point of the policy.

The note says that it was “unclear” whether the enhanced tax credit would encourage more people to contribute and claim the credit, which would lead to more foregone tax revenue for the state.

The legislative research staffer who authored the impact statement declined to comment, and the bill’s House sponsor, Rep. Christopher Warwick, did not respond to questions from ProPublica.

Warwick, a Republican from Bolivar, in southwest Missouri, told the tax reform committee that his proposal empowers taxpayers to support important work without the state “trying to verify what programs work.” He said, too, that he would oppose requirements for pregnancy resource centers to report how they spend the money, saying he wanted to “limit the bureaucracy.”

Warwick’s bill would also increase the tax credit for donations to maternity homes from 70% to 100% and for diaper banks from 50% to 100%. The state has not yet studied the impact of those changes.

A matching bill has been introduced in the Senate but has not yet advanced.

Rep. Steve Butz, a Democrat from St. Louis, argued the tax credit would effectively shift charitable giving from individuals to the state.

“This will be the fourth bill I’ve heard that will reduce revenue, which I guess is clearly your goal here — to reduce the revenue to the state,” Butz told Warwick during a legislative hearing on the bill. He argued that if donors receive a full tax credit for their contributions, they aren’t really giving their own money — rather, the state is effectively making the donation for them. “So I don’t know that I’d consider that much charitable giving.”

In an interview, Butz said he considers himself pro-life and has donated to pregnancy resource centers, receiving the 70% tax credit. However, he said he does not believe the program should take priority over others that receive less or no tax incentives for giving.

Missouri’s approach to crisis pregnancy centers reflects a growing divide between red and blue states. While Republican-led states such as Florida, Texas and Tennessee have ramped up funding for pregnancy resource centers, states led by Democrats, including Massachusetts and California, have warned residents the centers mislead patients by posing as medical clinics while steering them away from abortion.

Missouri is among the national leaders in per capita spending on pregnancy resource centers even before tax credits are factored in, according to data from states that fund them. Kehoe has proposed increasing direct state funding by almost 50% to more than $12 million in the fiscal year that starts July 1.

In a statement, Gabby Picard, communications director in Kehoe’s office, said the governor “is committed to supporting services that help women choose to carry their unborn child to term, which is why his budget recommends increased funding” for abortion alternatives, including pregnancy resource centers.

Missouri was the first state to use tax credits to fund pregnancy centers, becoming a model for other states looking to support the anti-abortion movement. One public health expert who has tracked the impact of pregnancy centers said Missouri has been a leader and innovator in this effort. “What Missouri is proposing really makes them an outlier at the top of the game,” said Andrea Swartzendruber, an associate professor of epidemiology and biostatistics at the University of Georgia.

Warwick’s initiative follows sweeping changes to Missouri’s abortion laws.

In November, voters approved a constitutional amendment guaranteeing the right to abortion and other reproductive health decisions, effectively nullifying a near-total ban that had been in place since 2022, when the U.S. Supreme Court overturned Roe v. Wade.

The first abortion performed under the new amendment took place in Kansas City on Feb. 15, after a judge struck down restrictive licensing rules that had prevented providers like Planned Parenthood from resuming services in the state.

In response, Republican lawmakers have introduced a wave of bills aimed at limiting the amendment’s impact. Among the measures is another proposed constitutional amendment that would restrict abortion and ban gender-affirming care for minors — an effort to combine something that voters support with something they don’t in the hopes it’ll turn off abortion-rights supporters.

Some abortion-rights advocates in the legislature see the expanded tax credit as part of a broader push by anti-abortion lawmakers stung by the repeal of the abortion ban. After the amendment passed, those legislators “needed some wins,” said Rep. Kemp Strickler, a Democrat from the Kansas City suburbs.

“But even if the amendment had lost,” Strickler said, “they probably would have been coming forward with these kinds of things.”