Income tax credit; revise for employers providing dependent child care or child care stipends., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Finance

By: Senator(s) Boyd

Senate Bill 2867

(As Sent to Governor)

AN ACT TO AMEND SECTION 57-73-23, MISSISSIPPI CODE OF 1972,
TO MODIFY THE CONDITIONS UNDER WHICH CERTAIN EMPLOYERS PROVIDING CHILD CARE
STIPENDS MAY BE ELIGIBLE FOR AN INCOME TAX CREDIT UNDER THE SECTION; TO PROVIDE
THAT THE CREDIT ALLOWED MAY NOT EXCEED $3,000.00 PER YEAR FOR EACH CHILD OF A
PARTICIPATING EMPLOYEE; TO REVISE CERTIFICATION REQUIREMENTS EMPLOYERS MUST
MEET; TO PROVIDE AN ANNUAL AGGREGATE CAP OF $1,000,000.00 ON CREDITS THAT MAY
BE ALLOCATED UNDER THIS SECTION; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1.  Section
57-73-23, Mississippi Code of 1972, is amended as follows:

57-73-23.  (1)  A fifty
percent (50%) income tax credit shall be granted to any employer providing
dependent care for employees during the employee's work hours, and to any
employer who provides a child care stipend of at least * * * Six Thousand Dollars ($6,000.00) Two
Thousand Dollars ($2,000.00) per child for direct payments made to a
licensed or registered entity providing dependent child care in the State of
Mississippi for an employee's children during the employee's work hours.  The
credit allowed may not exceed Three Thousand Dollars ($3,000.00) per year for
each child of a participating employee.

(2)  In order for an
employer who provides a child care stipend under this section to be eligible
for the tax credit, the employer shall certify to the Department of Revenue:

(a)  The names of the
employees on whose behalf the stipend is paid; * * *and

(b)  The amount of the
stipend paid on behalf of each of those employees;

(c)  The licensed or
registered entity receiving the child care stipend from the employer on behalf
of the employee, including the entity's federal identification number and
license and registration number as listed on the State Department of Health
Registry; and

(d)  Such other
information as may be required by the Department of Revenue to ensure that
credits under this section are granted only to employers who provide stipends
to a licensed or registered entity providing dependent care in the State of
Mississippi for an employee's children during the employee's work hours.

(3)  For an employer
contracting with a licensed or registered entity to provide dependent care for
its employees during the employee's work hours, the credit is applied to the
net cost of any contract executed by the employer for another entity to provide
dependent care; or, if the employer elects to provide dependent care itself,
the credit is applied to expenses of dependent care staff, learning and
recreational materials and equipment, and the construction and maintenance of a
facility; or, if the employer elects to provide a child care stipend to a
licensed or registered entity providing dependent care in the State of Mississippi
for the employee's children during the employee's work hours, the credit is
applied to the amount of the stipend provided.  Additional eligible expenses
include net costs assumed by the employer which increase the quality,
availability and affordability of dependent care in the community used by
employees during the employee's work hours.  This cost is net of any
reimbursement.  A deduction shall not be allowed for any expenses which serve
as the basis for an income tax credit.  The credits allowed under this section
shall not be used by any business enterprise or corporation other than the
business enterprise actually qualifying for the credits.

Credit may be carried
forward for the five (5) successive years if the amount allowable as credit exceeds
income tax liability in a tax year; however, thereafter, if the amount
allowable as a credit exceeds the tax liability, the amount of excess shall not
be refundable or carried forward to any other taxable year.

The facility must have an
average daily enrollment for the taxable year of no less than six (6) children
who are twelve (12) years of age or less and be licensed according to the
regulations governing licensure of child care facilities in Mississippi; or
must serve five (5) or fewer children and/or elderly adults in a family child
care/elder care home approved by the Department of Health for participation in
the United States Department of Agriculture child and adult nutrition program;
or must serve children over twelve (12) years of age but less than eighteen
(18) years of age in either a community-based facility or a facility at the
employment site; or must serve adult relatives of employees in either a
community-based elder care facility or a facility at the employment site; or
must serve children or adult dependents having physical, emotional or mental
disabilities in either a community-based facility or a facility at the
employment site.

Employers * * * will shall be certified as eligible for
the tax credit * * * by the
if the facility is licensed or registered with the  State Department of Health for programs serving
children twelve (12) years of age or younger and for programs serving elderly
adults and by the Department of Revenue for programs serving other dependents
older than twelve (12) years of age at the time of the direct payment to the
facility.

(4)  The aggregate amount
of credits that may be allocated by the Department of Revenue under this
section during a calendar year shall not exceed One Million Dollars
($1,000,000.00).

SECTION 2.  This act
shall take effect and be in force from and after July 1, 2026.