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HB112 • 2026

Income tax; provide a credit for taxpayers who claim a federal earned income tax credit.

AN ACT TO PROVIDE A STATE INCOME TAX CREDIT FOR TAXPAYERS CLAIMING THE FEDERAL EARNED INCOME TAX CREDIT; TO PROVIDE THE AMOUNT OF THE CREDIT; TO PROVIDE THAT IF THE AMOUNT OF CREDIT CLAIMED BY A TAXPAYER EXCEEDS THE AMOUNT OF INCOME TAX IMPOSED UPON THE TAXPAYER FOR THE TAXABLE YEAR, THEN THE TAXPAYER SHALL RECEIVE A REFUND FROM THE DEPARTMENT OF REVENUE FOR THE AMOUNT OF SUCH EXCESS; AND FOR RELATED PURPOSES.

Taxes
Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor
Johnson
Last action
2026-02-25
Official status
Dead
Effective date
January 1,

Plain English Breakdown

The official source material does not provide specific details on how many taxpayers would be affected or what the financial impact might be.

State Income Tax Credit for Earned Income

This bill creates a state income tax credit equal to ten percent of the federal earned income tax credit claimed by Mississippi taxpayers.

What This Bill Does

  • Creates a refundable state income tax credit equal to ten percent of the federal earned income tax credit claimed by a taxpayer.
  • Requires taxpayers to provide proof of their federal earned income tax credit when claiming this new state credit.
  • Allows for a refund from the Department of Revenue if the amount of the credit exceeds the taxpayer's income tax liability.

Who It Names or Affects

  • Mississippi taxpayers who claim the federal earned income tax credit.

Terms To Know

Earned Income Tax Credit (EITC)
A refundable tax credit for low- to moderate-income working individuals and families that is designed to offset the burden of Social Security taxes, encourage work, and alleviate poverty.

Limits and Unknowns

  • The bill did not pass during its session.
  • It does not specify how many taxpayers would be affected or what the financial impact on state revenue might be.

Bill History

  1. 2026-02-25 Mississippi Legislative Bill Status System

    02/25 (H) Died In Committee

  2. 2026-01-07 Mississippi Legislative Bill Status System

    01/07 (H) Referred To Ways and Means

Official Summary Text

Income tax; provide a credit for taxpayers who claim a federal earned income tax credit.

Current Bill Text

Read the full stored bill text 
H. B. No. 112 *HR43/R152* ~ OFFICIAL ~ R3/5
26/HR43/R152
PAGE 1 (BS\KP)

To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Johnson

HOUSE BILL NO. 112

AN ACT TO PROVIDE A STATE INCOME TAX CREDIT FOR TAXPAYERS 1
CLAIMING THE FEDERAL EARNED INCOME TAX CREDIT; TO PROVIDE THE 2
AMOUNT OF THE CREDIT; TO PROVIDE THAT IF THE AMOUNT OF CREDIT 3
CLAIMED BY A TAXPAYER EXCEEDS THE AMOUNT OF INCOME TAX IMPOSED 4
UPON THE TAXPAYER FOR THE TAXABLE YEAR, THEN THE TAXPAYER SHALL 5
RECEIVE A REFUND FROM THE DEPARTMENT OF REVENUE FOR THE AMOUNT OF 6
SUCH EXCESS; AND FOR RELATED PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. (1) Any taxpayer allowed to claim a federal 9
earned income tax credit under 26 USCS Section 32, shall be 10
allowed a refundable credit against the taxes imposed under this 11
chapter in the manner prescribed in this section. The amount of 12
the credit shall be equal to ten percent (10%) of the amount of 13
the federal credit allowed under 26 USCS Section 32 claimed by the 14
taxpayer on the taxpayer's federal income tax return. If the 15
amount of credit claimed by a taxpayer exceeds the amount of 16
income tax imposed upon the taxpayer for the taxable year reduced 17
by the sum of all other credits allowable to the taxpayer under 18
this chapter, except credit for tax payments made by or on behalf 19
H. B. No. 112 *HR43/R152* ~ OFFICIAL ~
26/HR43/R152
PAGE 2 (BS\KP)
ST: Income tax; provide a credit for taxpayers
who claim a federal earned income tax credit.
of the taxpayer, then the taxpayer shall receive a refund from the 20
Department of Revenue for the amount of such excess. 21
(2) To obtain the credit provided for in this section, a 22
taxpayer must claim the federal credit allowed under 26 USCS 23
Section 32 on the taxpayer's federal income tax return and must 24
provide a copy of such return and any other information required 25
by the Department of Revenue. 26
SECTION 2. Section 1 of this act shall be codified as a new 27
section in Chapter 7, Title 27, Mississippi Code of 1972. 28
SECTION 3. Nothing in this act shall affect or defeat any 29
claim, assessment, appeal, suit, right or cause of action for 30
taxes due or accrued under the income tax laws before the date on 31
which this act becomes effective, whether such claims, 32
assessments, appeals, suits or actions have been begun before the 33
date on which this act becomes effective or are begun thereafter; 34
and the provisions of the income tax laws are expressly continued 35
in full force, effect and operation for the purpose of the 36
assessment, collection and enrollment of liens for any taxes due 37
or accrued and the execution of any warrant under such laws before 38
the date on which this act becomes effective, and for the 39
imposition of any penalties, forfeitures or claims for failure to 40
comply with such laws. 41
SECTION 4. This act shall take effect and be in force from 42
and after January 1, 2025. 43