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SB2860 • 2026

Income tax; provide credit for taxpayers claiming 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
Blackmon
Last action
2026-02-25
Official status
Dead
Effective date
January 1,

Plain English Breakdown

The bill did not pass, so its exact impact is uncertain.

State Income Tax Credit for Earned Income Tax Credit Claimants

This bill creates a state income tax credit equal to twenty percent of the federal Earned Income Tax Credit (EITC) claimed by taxpayers, allowing them to receive refunds if their credit exceeds their state income tax liability.

What This Bill Does

  • Creates a new state income tax credit for Mississippi residents who claim the federal EITC on their taxes.
  • Sets the amount of this credit at twenty percent (20%) of the federal EITC claimed by taxpayers.
  • Allows taxpayers to receive refunds if the total credit exceeds their state income tax liability.

Who It Names or Affects

  • Mississippi residents who claim the federal Earned Income Tax Credit on their taxes.

Terms To Know

Earned Income Tax Credit (EITC)
A tax credit for low- to moderate-income working individuals and families that helps reduce poverty, supplement income, and encourage work.

Limits and Unknowns

  • The bill did not pass in the session it was introduced.
  • It is unclear how many taxpayers would be eligible or benefit from this new credit.

Bill History

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

    02/25 (S) Died In Committee

  2. 2026-01-19 Mississippi Legislative Bill Status System

    01/19 (S) Referred To Finance

Official Summary Text

Income tax; provide credit for taxpayers claiming federal Earned Income Tax Credit.

Current Bill Text

Read the full stored bill text 
S. B. No. 2860 *SS36/R96* ~ OFFICIAL ~ R3/5
26/SS36/R96
PAGE 1 (icj\kr)

To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Blackmon

SENATE BILL NO. 2860

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 USC § 32, shall be allowed a 10
refundable credit against the taxes imposed under this chapter in 11
the manner prescribed in this section. The amount of the credit 12
shall be equal to twenty percent (20%) of the amount of the 13
federal credit allowed under 26 USC § 32 claimed by the taxpayer 14
on the taxpayer's federal income tax return. If the amount of 15
credit claimed by a taxpayer exceeds the amount of income tax 16
imposed upon the taxpayer for the taxable year reduced by the sum 17
of all other credits allowable to the taxpayer under the state 18
income tax laws, except credit for tax payments made by or on 19
S. B. No. 2860 *SS36/R96* ~ OFFICIAL ~
26/SS36/R96
PAGE 2 (icj\kr)
ST: Income tax; provide credit for taxpayers
claiming federal Earned Income Tax Credit.
behalf of the taxpayer, then the taxpayer shall receive a refund 20
from the department 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 § 32 23
on the taxpayer's federal income tax return and must provide a 24
copy of such return and any other information required by the 25
department. 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, 2026. 43