Bill > HB202

This bill establishes a state income tax credit for Mississippi taxpayers who claim the federal child tax credit, a tax benefit provided by the U.S. government for qualifying children. Specifically, the bill allows a credit of $1,200 for each child for whom a taxpayer claims the federal credit, as outlined in 26 USCS Section 24. This state credit is limited to the taxpayer's total state tax liability for the year, meaning it cannot reduce the tax owed below zero. Importantly, any portion of the credit that cannot be used in a given tax year can be carried forward for up to five consecutive years. To qualify for this state credit, taxpayers must have claimed the federal child tax credit and provide a copy of their federal tax return and any other requested information to the Mississippi Department of Revenue. The bill also clarifies that it does not affect any tax claims, assessments, or liabilities that were due or accrued before its effective date of January 1, 2026.

Budget and Finance

https://billstatus.ls.state.ms.us/2026/pdf/history/HB/HB0202.xml