Income tax; increase aggregate amount of credits allowed for certain employees sponsoring skills training for employees.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Bell (21st)

HOUSE BILL NO. 1835

AN ACT TO AMEND SECTION 27-7-22.50, MISSISSIPPI CODE OF 1972, 1
WHICH AUTHORIZES AN INCOME TAX CREDIT FOR EMPLOYERS WHO SPONSOR 2
SKILLS TRAINING FOR EMPLOYEES, TO INCREASE THE MAXIMUM AGGREGATE 3
AMOUNT OF TAX CREDITS THAT MAY BE CLAIMED BY ALL TAXPAYERS 4
CLAIMING A CREDIT IN A TAXABLE YEAR; AND FOR RELATED PURPOSES. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 6
SECTION 1. Section 27-7-22.50, Mississippi Code of 1972, is 7
amended as follows: 8
27-7-22.50. (1) As used in this section, the following 9
words and phrases shall have the meanings ascribed herein unless 10
the context clearly requires otherwise: 11
(a) "Skills training" means any employer-sponsored 12
training by an appropriate community/junior college or training 13
approved by such community/junior college that enhances skills 14
that improve job performance. If the employer provides 15
preemployment training, the portion of the preemployment training 16
that involves skills training shall be eligible for the credit. 17
(b) "Employer-sponsored training" means training 18
provided by the appropriate community/junior college in the 19
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district within which the employer is located or training approved 20
by such community/junior college. 21
(c) "Employer" means those permanent business 22
enterprises as defined and set out in Section 57-73-21. 23
(2) A fifty percent (50%) income tax credit shall be granted 24
to any employer sponsoring skills training. The fifty percent 25
(50%) credit shall be granted to employers that participate in 26
employer-sponsored training programs through any community/junior 27
college in the district within which the employer is located or 28
training approved by such community/junior college. The credit is 29
applied to qualified training expenses, which are expenses related 30
to instructors, instructional materials and equipment, and the 31
construction and maintenance of facilities by such employer 32
designated for training purposes which are attributable to 33
training provided through such community/junior college or 34
training approved by such community/junior college. The credit 35
allowed under this section shall only be used by the actual 36
employer qualifying for the credit. The credit shall not exceed 37
fifty percent (50%) of the taxpayer's income tax liability in a 38
tax year and may be carried forward for five (5) successive years 39
if the amount allowable as a credit exceeds the income tax 40
liability in a tax year; however, thereafter, if the amount 41
allowable as a credit exceeds the tax liability, the amount of 42
excess credit shall not be refundable or carried forward to any 43
other taxable year. The credit authorized under this section 44
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shall not exceed Two Thousand Five Hundred Dollars ($2,500.00) per 45
employee during any one (1) year. The maximum aggregate amount of 46
tax credits that may be claimed by all taxpayers claiming a credit 47
under this section in a taxable year shall not exceed * * * Five 48
Million Dollars ($5,000,000.00). Nothing in this section shall be 49
interpreted in any manner as to prevent the continuing operation 50
of state-supported university programs. 51
(3) Employer-sponsored training shall include an evaluation 52
by the local community or junior college that serves the employer 53
to ensure that the training provided is job related and conforms 54
to the definition of "skills training" in subsection (1)(a) of 55
this section. 56
(4) Employers shall be certified as eligible for the tax 57
credit by the local community or junior college that serves the 58
employer and the department. 59
(5) The tax credits provided for in this section shall be in 60
addition to all other tax credits heretofore granted by the laws 61
of the state. 62
(6) A community/junior college may commit to provide 63
employer-sponsored skills training programs for an employer for a 64
multiple number of years, not to exceed five (5) years. 65
(7) The Mississippi Community College Board shall make a 66
report to the Legislature by January 30 of each year summarizing 67
the number of participants, the junior or community college 68
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ST: Income tax; increase aggregate amount of
credits allowed for certain employees sponsoring
skills training for employees.
through which the training was offered, and the type of training 69
offered. 70
(8) This section shall stand repealed from and after 71
December 31, 2027. 72
SECTION 2. This act shall take effect and be in force from 73
and after January 1, 2026. 74