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S. B. No. 2867 *SS26/R773CS* ~ OFFICIAL ~ R3/5
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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Senator(s) Boyd
COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 2867
AN ACT TO AMEND SECTION 57-73-23, MISSISSIPPI CODE OF 1972, 1
TO MODIFY THE CONDITIONS UNDER WHICH CERTAIN EMPLOYERS PROVIDING 2
CHILD CARE STIPENDS MAY BE ELIGIBLE FOR AN INCOME TAX CREDIT UNDER 3
THE SECTION; TO PROVIDE THAT THE CREDIT ALLOWED MAY NOT EXCEED 4
$3,000.00 PER YEAR FOR EACH CHILD OF A PARTICIPATING EMPLOYEE; TO 5
REVISE CERTIFICATION REQUIREMENTS EMPLOYERS MUST MEET; TO PROVIDE 6
AN ANNUAL AGGREGATE CAP OF $1,000,000.00 ON CREDITS THAT MAY BE 7
ALLOCATED UNDER THIS SECTION; AND FOR RELATED PURPOSES. 8
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 9
SECTION 1. Section 57-73-23, Mississippi Code of 1972, is 10
amended as follows: 11
57-73-23. (1) A fifty percent (50%) income tax credit shall 12
be granted to any employer providing dependent care for employees 13
during the employee's work hours, and to any employer who provides 14
a child care stipend of at least * * * Two Thousand Dollars 15
($2,000.00) per child for direct payments made to a licensed or 16
registered entity providing dependent child care in the State of 17
Mississippi for an employee's children during the employee's work 18
hours. The credit allowed may not exceed Three Thousand Dollars 19
($3,000.00) per year for each child of a participating employee. 20
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(2) In order for an employer who provides a child care 21
stipend under this section to be eligible for the tax credit, the 22
employer shall certify to the Department of Revenue: 23
(a) The names of the employees on whose behalf the 24
stipend is paid; * * * 25
(b) The amount of the stipend paid on behalf of each of 26
those employees; 27
(c) The licensed or registered entity receiving the 28
child care stipend from the employer on behalf of the employee, 29
including the entity's federal identification number and license 30
and registration number as listed on the State Department of 31
Health Registry; and 32
(d) Such other information as may be required by the 33
Department of Revenue to ensure that credits under this section 34
are granted only to employers who provide stipends to a licensed 35
or registered entity providing dependent care in the State of 36
Mississippi for an employee's children during the employee's work 37
hours. 38
(3) For an employer contracting with a licensed or 39
registered entity to provide dependent care for its employees 40
during the employee's work hours, the credit is applied to the net 41
cost of any contract executed by the employer for another entity 42
to provide dependent care; or, if the employer elects to provide 43
dependent care itself, the credit is applied to expenses of 44
dependent care staff, learning and recreational materials and 45
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equipment, and the construction and maintenance of a facility; or, 46
if the employer elects to provide a child care stipend to a 47
licensed or registered entity providing dependent care in the 48
State of Mississippi for the employee's children during the 49
employee's work hours, the credit is applied to the amount of the 50
stipend provided. Additional eligible expenses include net costs 51
assumed by the employer which increase the quality, availability 52
and affordability of dependent care in the community used by 53
employees during the employee's work hours. This cost is net of 54
any reimbursement. A deduction shall not be allowed for any 55
expenses which serve as the basis for an income tax credit. The 56
credits allowed under this section shall not be used by any 57
business enterprise or corporation other than the business 58
enterprise actually qualifying for the credits. 59
Credit may be carried forward for the five (5) successive 60
years if the amount allowable as credit exceeds income tax 61
liability in a tax year; however, thereafter, if the amount 62
allowable as a credit exceeds the tax liability, the amount of 63
excess shall not be refundable or carried forward to any other 64
taxable year. 65
The facility must have an average daily enrollment for the 66
taxable year of no less than six (6) children who are twelve (12) 67
years of age or less and be licensed according to the regulations 68
governing licensure of child care facilities in Mississippi; or 69
must serve five (5) or fewer children and/or elderly adults in a 70
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ST: Income tax credit; revise for employers
providing dependent child care or child care
stipends.
family child care/elder care home approved by the Department of 71
Health for participation in the United States Department of 72
Agriculture child and adult nutrition program; or must serve 73
children over twelve (12) years of age but less than eighteen (18) 74
years of age in either a community-based facility or a facility at 75
the employment site; or must serve adult relatives of employees in 76
either a community-based elder care facility or a facility at the 77
employment site; or must serve children or adult dependents having 78
physical, emotional or mental disabilities in either a 79
community-based facility or a facility at the employment site. 80
Employers * * * shall be certified as eligible for the tax 81
credit * * * if the facility is licensed or registered with the 82
State Department of Health for programs serving children twelve 83
(12) years of age or younger and for programs serving elderly 84
adults and by the Department of Revenue for programs serving other 85
dependents older than twelve (12) years of age at the time of the 86
direct payment to the facility. 87
(4) The aggregate amount of credits that may be allocated by 88
the Department of Revenue under this section during a calendar 89
year shall not exceed One Million Dollars ($1,000,000.00). 90
SECTION 2. This act shall take effect and be in force from 91
and after July 1, 2026. 92