Income tax; authorize credit for certain employers loaning employees to serve as instructors at community colleges.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Scoggin

HOUSE BILL NO. 1792

AN ACT TO ESTABLISH THE MISSISSIPPI TALENT EXCHANGE FOR 1
ADVANCEMENT OF CAREERS AND HIGHER EDUCATION (TEACH) CREDIT ACT; TO 2
PROVIDE A STATE INCOME TAX CREDIT FOR PRIVATE EMPLOYERS WHO LOAN 3
QUALIFIED EMPLOYEES TO MISSISSIPPI COMMUNITY COLLEGES AS 4
INSTRUCTORS IN HIGH-DEMAND CAREER AND TECHNICAL EDUCATION 5
DISCIPLINES; TO PROVIDE FOR ADMINISTRATION, ELIGIBILITY, AND 6
REPORTING REQUIREMENTS; AND FOR RELATED PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. (1) This section shall be known and may be cited 9
as the "Mississippi Talent Exchange for Advancement of Careers and 10
Higher Education (TEACH) Credit Act". 11
(2) The Legislature finds and declares that: 12
(a) Mississippi faces a shortage of qualified 13
instructors in high-demand Career and Technical Education (CTE) 14
fields and in workforce training; 15
(b) Private industry possesses untapped instructional 16
expertise; and 17
(c) Incentivizing private employers to loan skilled 18
employees to serve as instructors at Mississippi community 19
colleges will strengthen the state's workforce pipeline, enhance 20
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student access to industry-aligned training, and support economic 21
growth. 22
(3) As used in this section, the following words and phrases 23
shall have the meanings ascribed in this subsection unless the 24
context clearly requires otherwise: 25
(a) "Employer" means a private company or business 26
entity authorized to do business in Mississippi. 27
(b) "Loaned employee" means a qualified employee of an 28
employer who is assigned to teach at a Mississippi community 29
college under this section. 30
(c) "Community college" means a public community or 31
junior college established under Chapter 29, Title 37, Mississippi 32
Code of 1972. 33
(d) "CTE program" means a Career and Technical 34
Education program at a public community college that is designated 35
as high-demand. 36
(e) "Workforce training" means training in association 37
with a public community college. 38
(4) (a) An employer shall be eligible for a state income tax 39
credit equal to the amount of salary and benefits paid to a loaned 40
employee during the period of assignment as an instructor in a 41
designated CTE program or workforce training at a Mississippi 42
community college. An employer may claim the tax credit for the 43
portion of salary and benefits directly paid by the employer and 44
not otherwise reimbursed by public funds or workforce development 45
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grants, including, but not limited to, Workforce Enhancement 46
Training, MS Works, or AccelerateMS programs. The credit shall 47
not exceed the taxpayer's income tax liability in a tax year. Any 48
tax credit claimed under this section but not used in any taxable 49
year may be carried forward for five (5) consecutive years from 50
the close of the tax year in which the credits were earned. 51
(b) The tax credit authorized under this section shall 52
be claimed against the employer's state income tax liability for 53
the taxable year in which the loaned employee serves as an 54
instructor. 55
(c) The maximum aggregate amount of tax credits that 56
may be claimed by all taxpayers claiming a credit under this 57
section in a taxable year shall not exceed One Million Dollars 58
($1,000,000.00). 59
(5) (a) The Mississippi Community College Board, in 60
consultation with the Department of Revenue, shall administer the 61
TEACH Credit program. The board shall ensure that Mississippi 62
community colleges: (i) designate eligible CTE programs and/or 63
workforce training programs based on workforce demand; (ii) 64
approve employer participation and verify employee qualifications; 65
(iii) allow colleges to provide a stipend to loaned employees, 66
separate from employer compensation, if applicable; and (iv) 67
maintain records of program participation and outcomes. 68
(6) (a) To qualify for the tax credit authorized under this 69
section, an employer must: (i) continue to pay the loaned 70
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employee's full salary and benefits during the teaching 71
assignment; (ii) assign the employee to teach in an approved CTE 72
program or workforce training program for a minimum period as 73
determined by each community college in conjunction with the 74
employer; and (iii) enter into a written agreement with the 75
community college specifying terms of the assignment. 76
(b) A loaned employee must meet minimum instructor 77
qualifications as established by the community college with whom 78
the partnership takes place. 79
(7) (a) Employers and community colleges shall submit 80
annual reports to the Mississippi Community College Board 81
detailing program participation, instructional impact, and 82
workforce outcomes. 83
(b) The Mississippi Community College Board shall 84
submit an annual report to the Legislature evaluating program 85
effectiveness, including recommendations for improvement or 86
expansion. 87
(8) (a) Employers participating in the program may receive 88
public recognition for workforce development contributions. 89
(b) Community colleges may prioritize placement of 90
loaned employees in sectors with critical shortages. 91
(c) The Mississippi Community College Board may 92
encourage partnerships with industry associations to promote 93
program participation. 94
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ST: Income tax; authorize credit for certain
employers loaning employees to serve as
instructors at community colleges.
(9) The Mississippi Community College Board and the 95
Department of Revenue shall have all powers necessary to implement 96
and administer the program established under this section, and the 97
board and the department shall promulgate rules and regulations, 98
in accordance with the Mississippi Administrative Procedures Law, 99
necessary for the implementation of this section. 100
SECTION 2. Section 1 of this act shall be codified as new 101
section in Chapter 7, Title 27, Mississippi Code of 1972. 102
SECTION 3. Nothing in this act shall affect or defeat any 103
claim, assessment, appeal, suit, right or cause of action for 104
taxes due or accrued under the income tax laws before the date on 105
which this act becomes effective, whether such claims, 106
assessments, appeals, suits or actions have been begun before the 107
date on which this act becomes effective or are begun thereafter; 108
and the provisions of the income tax laws are expressly continued 109
in full force, effect and operation for the purpose of the 110
assessment, collection and enrollment of liens for any taxes due 111
or accrued and the execution of any warrant under such laws before 112
the date on which this act becomes effective, and for the 113
imposition of any penalties, forfeitures or claims for failure to 114
comply with such laws. 115
SECTION 4. This act shall take effect and be in force from 116
and after January 1, 2026. 117