Bill > HB227

This bill introduces three new income tax credits related to child care in Mississippi. First, parents can receive a $750 tax credit per dependent child under 6 years old who attends a qualified child care center (defined by the Mississippi Department of Human Services Voluntary Child Care Program) for at least 8 months, with eligibility limited to families earning up to 400% of the federal poverty level. For families earning less than 250% of the federal poverty level, this credit can be fully refundable. Second, child care centers qualified as standard or comprehensive can receive tax credits based on their average monthly child attendance, with standard centers eligible for up to $15,000 and comprehensive centers eligible for up to $20,000. Third, teachers and directors employed at these qualified child care centers for more than 9 months can receive tax credits of $750 for standard centers or $1,000 for comprehensive centers, which are also refundable if they exceed the taxpayer's income tax liability. The bill aims to support child care affordability, center operations, and workforce retention in the child care sector, with provisions taking effect on January 1, 2025, and the Department of Revenue responsible for implementing and administering the new credits.

Budget and Finance

https://billstatus.ls.state.ms.us/2025/pdf/history/HB/HB0227.xml