Bill > HB510

This bill establishes a new state income tax credit for taxpayers who claim the federal earned income tax credit, which is a tax benefit for low-to-moderate income working individuals and families. Specifically, the bill provides a state tax credit equal to ten percent (10%) of the amount of the federal earned income tax credit claimed by the taxpayer. If the amount of this state credit is more than the taxpayer's total state income tax liability after accounting for other allowed state tax credits, the taxpayer will receive a refund for the difference from the Department of Revenue. To qualify for this state credit, taxpayers must claim the federal earned income tax credit on their federal tax return and provide a copy of that return and any other required information to the Department of Revenue. This new provision will be added to Mississippi's income tax laws and will become effective on January 1, 2026, without affecting any tax claims or liabilities that arose before that date.

Budget and Finance

https://billstatus.ls.state.ms.us/2026/pdf/history/HB/HB0510.xml