Missouri's homestead disaster tax credit, created to reimburse homeowners for 2025 storm insurance deductibles, is caught in legal limbo. Even so, state officials say residents should keep filing their claims. The Department of Revenue has hit pause on issuing credits while a lawsuit over the special-session law moves forward, leaving homeowners who paid big deductibles unsure when any relief will actually land. For many in the St. Louis area who were slammed by last year's storms, including the May 16, 2025 tornado, that means scrambling through paperwork while courts and lawmakers sort out the mess.
Who qualifies and how the credit works
Under state law, eligible Missouri residents can claim a credit equal to the insurance deductible they paid on their primary residence during 2025, capped at $5,000, as set out in the Missouri Revised Statutes. The program also includes carry-forward and transfer provisions and limits how much the state will redeem in credits each fiscal year, details that are baked into the statute.
Why payouts are paused
The Department of Revenue says it is holding off on actually issuing the credit so it does not end up clawing money back if a court later strikes the law down. That cautious approach stems from a lawsuit targeting the broader special-session package that included the homestead disaster tax credit, according to St. Louis Public Radio.
Lawmakers and the legal fight
Sen. Mike Moon and Rep. Bryant Wolfin brought the challenge to the special-session package and appealed after a lower court tossed the case for lack of standing. Wolfin told reporters that "obviously it is not our intention to hold up anybody from receiving any kind of tax credits that they are due," while other lawmakers have pushed for a legislative fix and the governor's office says it is watching the litigation, according to St. Louis Public Radio.
How to apply and the deadline
Homeowners who paid a deductible during a qualifying 2025 presidential disaster declaration, including the May 16 tornado, are still being urged to file. To preserve their claim, they should complete the Homestead Disaster Tax Credit affidavit (Form 5926), attach Form MO-TC, and include documentation from their insurer. According to the Missouri Department of Revenue, applications and supporting documents can be mailed or emailed to the department, and no new credits will be authorized after October 15, 2026.
What could happen next
If the Missouri Supreme Court upholds the challenge, the Department of Revenue could be barred from redeeming credits and lawmakers may have to re-pass or revise the program before any payouts can move forward. If the court rejects the appeal, the department could begin issuing credits. Gov. Mike Kehoe signed the special-session legislation that created the credit as part of a broader disaster-relief package last year, according to a press release from the Governor's Office.
