Bill > HB113

This bill authorizes income tax credits for certain child care expenses and for child care providers and their employees in Mississippi, effective January 1, 2026. Taxpayers can claim a credit of $750 per dependent child if their family income does not exceed 400% of the federal poverty level, the child attended a qualifying child care center for at least eight months while under six years old, and the center is recognized as a "standard" or "comprehensive" child care center under the Mississippi Department of Human Services Voluntary Child Care Program. If a taxpayer's income is below 250% of the federal poverty level, any unused credit will be refunded. Child care centers themselves can receive a refundable credit based on the number of children they serve, with standard centers receiving up to $15,000 and comprehensive centers up to $20,000. Additionally, teachers and directors employed for over nine months at these qualifying centers can receive a refundable credit of $750 for standard centers or $1,000 for comprehensive centers. The Department of Revenue is empowered to create rules for implementing these provisions.