Income tax; provide a credit for taxpayers who claim a federal income child tax credit.
Summary
House Bill 1679 would create a Mississippi individual income tax credit for taxpayers who are eligible to claim the federal child tax credit under 26 U.S.C. Section 24. The credit amount would be $1,200 for each qualifying child for whom the taxpayer claimed the federal credit. The bill limits the credit to the taxpayer’s total Mississippi income tax liability for the year, so it cannot reduce tax below zero, and any unused amount may be carried forward for up to five consecutive tax years.
To claim the credit, a taxpayer would need to have claimed the federal child tax credit on the federal return and provide a copy of that return, along with any other information the Mississippi Department of Revenue requires. The bill would be codified as a new section in Chapter 7, Title 27 of the Mississippi Code and would take effect January 1, 2025.
Impact
The bill would add a new state income tax credit to Mississippi law for taxpayers with qualifying children who also claim the federal child tax credit. It would reduce state income tax liability for eligible families, potentially lowering collections from the individual income tax, while also creating a new administrative requirement for the Department of Revenue to verify federal eligibility and process carryforwards. The measure would amend Mississippi’s income tax framework by adding a new credit provision in Title 27, Chapter 7.
Sentiment
Based on the bill’s sponsorship and the absence of recorded committee debate or votes in the provided materials, the available context suggests the bill was introduced as a family tax relief measure rather than a controversial tax overhaul. The caption and text indicate a straightforward policy goal of providing additional support to taxpayers with children. Because no committee transcripts or vote history are included, there is no documented opposition or support to assess beyond the bill’s apparent pro-family, pro-tax-relief framing.
Contention
The main policy issue is fiscal cost: the credit would reduce state revenue, and the size of the credit—$1,200 per child—could be significant for the state budget depending on participation. Another point of implementation concern is eligibility verification, since taxpayers must prove they claimed the federal child tax credit and may need to supply federal return documentation. No specific objections, amendments, or opposing arguments are included in the provided record, so any contention is limited to the general tradeoff between tax relief for families and reduced state revenue.