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Bill > HB4039
MS HB4039
MS HB4039Income tax; revise credit for employers providing dependent/child care for employees.
summary
Introduced
02/23/2026
02/23/2026
In Committee
03/04/2026
03/04/2026
Crossed Over
02/25/2026
02/25/2026
Passed
Dead
03/28/2026
03/28/2026
Introduced Session
Potential new amendment
2026 Regular Session
Bill Summary
An Act To Amend Section 57-73-23, Mississippi Code Of 1972, Which Authorizes An Income Tax Credit For Employers Providing Dependent Care For Employees During Work Hours And For Employers That Provide A Child Care Stipend To Be Used For Child Care During Employees' Work Hours, To Reduce The Amount Of The Required Stipend And To Provide For The Stipend To Be For Direct Payments To A Licensed Or Registered Entity, Or Other Governmental, Or Accrediting Agency Or Entity Providing Dependent Child Care; To Provide That The Tax Credit Allowed May Not Exceed $3,000.00 Per Year For Each Child Of A Participating Employee; To Provide That In Lieu Of Claiming A Tax Credit, A Taxpayer May Elect To Claim A Rebate In The Amount Of 75% Of The Amount That Would Be Eligible To Claim As A Credit; To Provide That The Maximum Aggregate Amount Of Credits And Rebates That May Be Used By A Taxpayer In A Taxable Year Cannot Exceed $50,000.00; To Provide That The Maximum Aggregate Amount Of Tax Credits And Rebates That May Be Awarded Cannot Exceed $5,000,000.00 For Any One Taxable Year; And For Related Purposes.
AI Summary
This bill revises Mississippi's income tax credit for employers who provide dependent or child care for their employees during work hours, or who offer a stipend for such care. Key changes include reducing the required employer stipend amount to $2,000 per child for direct payments to licensed or registered child care providers, or other approved entities, and capping the tax credit at $3,000 per year for each child of a participating employee. Employers can now choose to receive a rebate instead of a credit, equal to 75% of the eligible credit amount, with a maximum aggregate of $50,000 in credits and rebates allowed per taxpayer annually. The total amount of credits and rebates awarded statewide is capped at $5 million per year. The bill also clarifies the types of facilities and dependents that qualify for this support and specifies that the act takes effect on January 1, 2026.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Died In Conference (on 03/28/2026)
Official Document
bill text
bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://billstatus.ls.state.ms.us/2026/pdf/history/HB/HB4039.xml |
| Committee Amendment No 1 | https://billstatus.ls.state.ms.us/documents/2026/html/sam/HB4039_S_Cmte_Amend_01.htm |
| BillText | https://billstatus.ls.state.ms.us/documents/2026/html/HB/4000-4099/HB4039PS.htm |
| BillText | https://billstatus.ls.state.ms.us/documents/2026/html/HB/4000-4099/HB4039CS.htm |
| BillText | https://billstatus.ls.state.ms.us/documents/2026/html/HB/4000-4099/HB4039IN.htm |
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