Income tax; authorize credit for certain child care expenses, child care centers and child care teachers and directors.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Johnson

HOUSE BILL NO. 113

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR CERTAIN 1
TAXPAYERS WHO INCUR CHILD CARE EXPENSES FOR A DEPENDENT CHILD TO 2
ATTEND A CHILD CARE CENTER THAT IS QUALIFIED AS A STANDARD CHILD 3
CARE CENTER OR COMPREHENSIVE CHILD CARE CENTER UNDER THE 4
MISSISSIPPI DEPARTMENT OF HUMAN SERVICES VOLUNTARY CHILD CARE 5
PROGRAM; TO PROVIDE FOR THE AMOUNT OF THE TAX CREDIT; TO AUTHORIZE 6
A REFUNDABLE INCOME TAX CREDIT FOR A TAXPAYER WHO IS QUALIFIED AS 7
A STANDARD CHILD CARE CENTER OR COMPREHENSIVE CHILD CARE CENTER 8
UNDER THE MISSISSIPPI DEPARTMENT OF HUMAN SERVICES VOLUNTARY CHILD 9
CARE PROGRAM; TO PROVIDE FOR THE AMOUNT OF THE TAX CREDIT; TO 10
AUTHORIZE A REFUNDABLE INCOME TAX CREDIT FOR A TAXPAYER WHO IS 11
EMPLOYED AS A TEACHER OR DIRECTOR WITH A CHILD CARE CENTER THAT IS 12
QUALIFIED AS A STANDARD CHILD CARE CENTER OR COMPREHENSIVE CHILD 13
CARE CENTER UNDER THE MISSISSIPPI DEPARTMENT OF HUMAN SERVICES 14
VOLUNTARY CHILD CARE PROGRAM; TO PROVIDE FOR THE AMOUNT OF THE TAX 15
CREDIT; AND FOR RELATED PURPOSES. 16
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 17
SECTION 1. (1) A taxpayer shall be allowed a credit against 18
the taxes imposed under this chapter for child care expenses paid 19
for a dependent child of the taxpayer as provided in this section. 20
In order to be eligible for the credit (a) the taxpayer's income 21
or the taxpayer's family income, as the case may be, must not 22
exceed four hundred percent (400%) of the federal poverty level 23
for the tax year for which a credit is claimed, (b) the dependent 24
child for which a credit is claimed must have attended a 25
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qualifying child care center for not less than eight (8) months 26
during the tax year for which the credit is claimed and have been 27
under six (6) years of age while attending the center and (c) the 28
child care expenses for which a credit is claimed must have been 29
incurred for such child to attend a child care center that is 30
qualified as a standard child care center or comprehensive child 31
care center under the Mississippi Department of Human Services 32
voluntary child care program. 33
(2) The amount of the credit authorized in this section 34
shall be Seven Hundred Fifty Dollars ($750.00) for each dependent 35
child for which a credit is claimed under this section. Except as 36
otherwise provided in this section, the tax credit shall not 37
exceed the amount of tax imposed upon the taxpayer for the taxable 38
year reduced by the sum of all other credits allowable to the 39
taxpayer under this chapter, except credit for tax payments made 40
by or on behalf of the taxpayer. However, if the taxpayer's 41
income or the taxpayer's family income, as the case may be, is 42
less than two hundred fifty percent (250%) of the federal poverty 43
level for the year for which the credit is claimed, then the 44
taxpayer shall receive a refund from the Department of Revenue for 45
the amount of such excess credit. Any tax credit claimed under 46
this section but not used in any taxable year may be carried 47
forward for five (5) consecutive years from the close of the tax 48
year in which the credit was earned. 49
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SECTION 2. (1) A taxpayer who is qualified as a standard 50
child care center or comprehensive child care center under the 51
Mississippi Department of Human Services voluntary child care 52
program shall be allowed a refundable credit against the taxes 53
imposed under this chapter as provided in this section. 54
(2) (a) The amount of the credit for a taxpayer who is 55
qualified as a standard child care center shall be the lesser of 56
Five Hundred Dollars ($500.00) multiplied by the average monthly 57
number of children attending the child care center during the tax 58
year for which the credit is claimed or Fifteen Thousand Dollars 59
($15,000.00). The amount of the credit for a taxpayer who is 60
qualified as a comprehensive child care center shall be the lesser 61
of Seven Hundred Fifty Dollars ($750.00) multiplied by the average 62
monthly number of children attending the child care center during 63
the tax year for which the credit is claimed or Twenty Thousand 64
Dollars ($20,000.00). 65
(b) If the amount of credit claimed by a taxpayer under 66
this section exceeds the amount of income tax imposed upon the 67
taxpayer for the taxable year reduced by the sum of all other 68
credits allowable to the taxpayer under this chapter, except 69
credit for tax payments made by or on behalf of the taxpayer, then 70
the taxpayer shall receive a refund from the Department of Revenue 71
for the amount of such excess. 72
SECTION 3. A taxpayer who is employed as a teacher or 73
director with a child care center that is qualified as a standard 74
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child care center or comprehensive child care center under the 75
Mississippi Department of Human Services voluntary child care 76
program shall be allowed a refundable credit against the taxes 77
imposed under this chapter as provided in this section. In order 78
to be eligible for the credit, the taxpayer must have been 79
employed in such capacity for more than nine (9) months during the 80
tax year for which the credit is claimed. The amount of the 81
credit for a taxpayer employed as a teacher or director with a 82
child care center that is qualified as a standard child care 83
center shall be Seven Hundred Fifty Dollars ($750.00). The amount 84
of the credit for a taxpayer employed as a teacher or director 85
with a child care center that is qualified as a comprehensive 86
child care center shall be One Thousand Dollars ($1,000.00). If 87
the amount of credit claimed by a taxpayer under this section 88
exceeds the amount of income tax imposed upon the taxpayer for the 89
taxable year reduced by the sum of all other credits allowable to 90
the taxpayer under this chapter, except credit for tax payments 91
made by or on behalf of the taxpayer, then the taxpayer shall 92
receive a refund from the Department of Revenue for the amount of 93
such excess. 94
SECTION 4. The Department of Revenue shall have all powers 95
necessary to implement and administer the provisions of this act, 96
and the Department of Revenue shall promulgate rules and 97
regulations, in accordance with the Mississippi Administrative 98
Procedures Law, necessary for the implementation of this act. 99
H. B. No. 113 *HR31/R153* ~ OFFICIAL ~
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ST: Income tax; authorize credit for certain
child care expenses, child care centers and
child care teachers and directors.
SECTION 5. Sections 1, 2 and 3 of this act shall be codified 100
as new sections in Chapter 7, Title 27, Mississippi Code of 1972. 101
SECTION 6. Nothing in this act shall affect or defeat any 102
claim, assessment, appeal, suit, right or cause of action for 103
taxes due or accrued under the income tax laws before the date on 104
which this act becomes effective, whether such claims, 105
assessments, appeals, suits or actions have been begun before the 106
date on which this act becomes effective or are begun thereafter; 107
and the provisions of the income tax laws are expressly continued 108
in full force, effect and operation for the purpose of the 109
assessment, collection and enrollment of liens for any taxes due 110
or accrued and the execution of any warrant under such laws before 111
the date on which this act becomes effective, and for the 112
imposition of any penalties, forfeitures or claims for failure to 113
comply with such laws. 114
SECTION 7. This act shall take effect and be in force from 115
and after January 1, 2026. 116