Bill > HB228

This bill establishes a state income tax credit for taxpayers who claim the federal Earned Income Tax Credit (EITC), which is a federal tax benefit designed to provide financial support to low to moderate-income working individuals and families. Specifically, the bill allows taxpayers to receive a state tax credit equal to 10% of their federal EITC amount, which can be claimed by providing a copy of their federal tax return to the Department of Revenue. Importantly, if the credit amount exceeds the taxpayer's state income tax liability, the taxpayer will receive a refund for the excess amount. To qualify, individuals must have claimed the federal EITC on their federal tax return and provide the necessary documentation. The bill will take effect on January 1, 2025, and does not impact any existing tax claims or assessments prior to that date. The legislation will be codified as a new section in Chapter 7, Title 27 of the Mississippi Code of 1972, providing a structured approach to implementing this tax credit for eligible Mississippi taxpayers.

Budget and Finance

https://billstatus.ls.state.ms.us/2025/pdf/history/HB/HB0228.xml