Bill > HB591

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 having qualifying children. Specifically, the bill allows a credit of $200 for each child for whom a federal child tax credit is claimed, with a maximum credit of $1,000 per taxpayer. This credit can only be used to reduce a taxpayer's total state income tax liability, meaning it cannot result in a refund if the credit exceeds the tax owed. Importantly, any unused portion of this state credit can be carried forward for up to five consecutive years, allowing taxpayers to benefit from it in future tax years if they don't fully utilize it in the year it's earned. To claim this state credit, taxpayers must provide proof of their federal child tax credit claim to the Mississippi Department of Revenue. The bill also clarifies that it does not affect any taxes owed or actions related to taxes that were due before the bill's effective date of January 1, 2026.

Budget and Finance

https://billstatus.ls.state.ms.us/2026/pdf/history/HB/HB0591.xml