HB257 Income tax; authorize credit for certain child care expenses…

Plain English Breakdown

The official source material does not specify the exact number of months required to qualify as a standard or comprehensive center.

Income Tax Credit for Child Care Expenses

This bill would allow certain taxpayers to get tax credits for child care expenses and provide refundable tax credits for qualified child care centers and their teachers/directors.

What This Bill Does

Allows a tax credit of $750 for each dependent child under six years old who attends a qualified child care center, provided the taxpayer's income does not exceed four hundred percent (400%) of the federal poverty level.
Provides a refundable tax credit to child care centers based on the number of children they serve, with a maximum limit of $15,000 for standard centers and $20,000 for comprehensive centers.
Gives teachers and directors at qualified child care centers a refundable tax credit of up to $750 (standard center) or $1,000 (comprehensive center), if they are employed for more than nine months in a year.
Offers a non-refundable tax credit for taxpayers who donate money to qualified child care centers, with a maximum limit of $5,000.

Who It Names or Affects

Taxpayers with dependent children under six years old attending a qualified child care center and whose income does not exceed four hundred percent (400%) of the federal poverty level.
Child care centers that are part of the Mississippi Department of Human Services voluntary child care program.
Teachers and directors employed at these child care centers for more than nine months in a year.

Terms To Know

Tax Credit: A reduction in the amount of tax owed to the government.
Refundable Tax Credit: A tax credit that can result in a refund if it is larger than the tax liability.

Limits and Unknowns

The bill did not pass and was not signed into law.
It would have taken effect on January 1, 2026, but this date is now irrelevant since the bill did not pass.

Official Summary Text

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

Current Bill Text

Read the full stored bill text

H. B. No. 257 *HR31/R391* ~ OFFICIAL ~ R3/5
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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representatives Clark, Anthony

HOUSE BILL NO. 257

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; TO AUTHORIZE AN INCOME TAX CREDIT FOR A TAXPAYER WHO 16
DONATES FUNDS TO A CHILD CARE CENTER THAT IS QUALIFIED AS A 17
STANDARD CHILD CARE CENTER OR COMPREHENSIVE CHILD CARE CENTER 18
UNDER THE MISSISSIPPI DEPARTMENT OF HUMAN SERVICES VOLUNTARY CHILD 19
CARE PROGRAM; TO PROVIDE FOR THE AMOUNT OF THE TAX CREDIT; AND FOR 20
RELATED PURPOSES. 21
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 22
SECTION 1. (1) A taxpayer shall be allowed a credit against 23
the taxes imposed under this chapter for child care expenses paid 24
for a dependent child of the taxpayer as provided in this section. 25
In order to be eligible for the credit (a) the taxpayer's income 26
or the taxpayer's family income, as the case may be, must not 27
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exceed four hundred percent (400%) of the federal poverty level 28
for the year for which a credit is claimed, (b) the dependent 29
child for which a credit is claimed must have attended a 30
qualifying child care center for not less than eight (8) months 31
during the year for which the credit is claimed and have been 32
under six (6) years of age while attending the center and (c) the 33
child care expenses for which a credit is claimed must have been 34
incurred for such child to attend a child care center that is 35
qualified as a standard child care center or comprehensive child 36
care center under the Mississippi Department of Human Services 37
voluntary child care program. 38
(2) The amount of the credit authorized in this section 39
shall be Seven Hundred Fifty Dollars ($750.00) for each dependent 40
child for which a credit is claimed under this section. Except as 41
otherwise provided in this section, the tax credit shall not 42
exceed the amount of tax imposed upon the taxpayer for the taxable 43
year reduced by the sum of all other credits allowable to the 44
taxpayer under this chapter, except credit for tax payments made 45
by or on behalf of the taxpayer. However, if the taxpayer's 46
income or the taxpayer's family income, as the case may be, is 47
less than two hundred fifty percent (250%) of the federal poverty 48
level for the year for which the credit is claimed, then the 49
taxpayer shall receive a refund from the Department of Revenue for 50
the amount of such excess credit. Any tax credit claimed under 51
this section but not used in any taxable year may be carried 52
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forward for five (5) consecutive years from the close of the tax 53
year in which the credit was earned. 54
SECTION 2. (1) A taxpayer who is qualified as a standard 55
child care center or comprehensive child care center under the 56
Mississippi Department of Human Services voluntary child care 57
program shall be allowed a refundable credit against the taxes 58
imposed under this chapter as provided in this section. 59
(2) (a) The amount of the credit for a taxpayer who is 60
qualified as a standard child care center shall be the lesser of 61
Five Hundred Dollars ($500.00) multiplied by the average monthly 62
number of children attending the child care center during the year 63
for which the credit is claimed or Fifteen Thousand Dollars 64
($15,000.00). The amount of the credit for a taxpayer who is 65
qualified as a comprehensive child care center shall be the lesser 66
of Seven Hundred Fifty Dollars ($750.00) multiplied by the average 67
monthly number of children attending the child care center during 68
the year for which the credit is claimed or Twenty Thousand 69
Dollars ($20,000.00). 70
(b) If the amount of credit claimed by a taxpayer under 71
this section exceeds the amount of income tax imposed upon the 72
taxpayer for the taxable year reduced by the sum of all other 73
credits allowable to the taxpayer under this chapter, except 74
credit for tax payments made by or on behalf of the taxpayer, then 75
the taxpayer shall receive a refund from the Department of Revenue 76
for the amount of such excess. 77
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SECTION 3. A taxpayer who is employed as a teacher or 78
director with a child care center that is qualified as a standard 79
child care center or comprehensive child care center under the 80
Mississippi Department of Human Services voluntary child care 81
program shall be allowed a refundable credit against the taxes 82
imposed under this chapter as provided in this section. In order 83
to be eligible for the credit, the taxpayer must have been 84
employed in such capacity for more than nine (9) months during the 85
tax year for which the credit is claimed. The amount of the 86
credit for a taxpayer employed as a teacher or director with a 87
child care center that is qualified as a standard child care 88
center shall be Seven Hundred Fifty Dollars ($750.00). The amount 89
of the credit for a taxpayer employed as a teacher or director 90
with a child care center that is qualified as a comprehensive 91
child care center shall be One Thousand Dollars ($1,000.00). If 92
the amount of credit claimed by a taxpayer under this section 93
exceeds the amount of income tax imposed upon the taxpayer for the 94
taxable year reduced by the sum of all other credits allowable to 95
the taxpayer under this chapter, except credit for tax payments 96
made by or on behalf of the taxpayer, then the taxpayer shall 97
receive a refund from the Department of Revenue for the amount of 98
such excess. 99
SECTION 4. (1) A taxpayer who donates funds to a child care 100
center that is qualified as a standard child care center or 101
comprehensive child care center under the Mississippi Department 102
H. B. No. 257 *HR31/R391* ~ OFFICIAL ~
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ST: Income tax; authorize credit for certain
child care expenses, child care centers and
child care center teachers and directors.
of Human Services voluntary child care program shall be allowed a 103
credit against the taxes imposed under this chapter as provided in 104
this section. 105
(2) The amount of the credit for a taxpayer under this 106
section shall be the lesser of the amount of funds donated to a 107
child care center during the year for which the credit is claimed 108
or Five Thousand Dollars ($5,000.00). The tax credit shall not 109
exceed the amount of tax imposed upon the taxpayer for the taxable 110
year reduced by the sum of all other credits allowable to the 111
taxpayer under this chapter, except credit for tax payments made 112
by or on behalf of the taxpayer. Any tax credit claimed under 113
this section but not used in any taxable year may be carried 114
forward for five (5) consecutive years from the close of the tax 115
year in which the credit was earned. 116
SECTION 5. The Department of Revenue shall have all powers 117
necessary to implement and administer the provisions of this act, 118
and the Department of Revenue shall promulgate rules and 119
regulations, in accordance with the Mississippi Administrative 120
Procedures Law, necessary for the implementation of this section. 121
SECTION 6. Sections 1, 2, 3 and 4 of this act shall be 122
codified as new sections in Chapter 7, Title 27, Mississippi Code 123
of 1972. 124
SECTION 7. This act shall take effect and be in force from 125
and after January 1, 2026. 126