AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR TAXPAYERS IN AN AMOUNT EQUAL TO CHILD CARE EXPENSES PAID BY TAXPAYERS FOR CHILD CARE FOR THEIR CHILDREN TO PREKINDERGARTEN PROVIDERS WHO PARTICIPATE IN THE EARLY LEARNING COLLABORATIVE ACT OF 2013; TO AUTHORIZE A TAX CREDIT FOR PREKINDERGARTEN PROVIDERS WHO PARTICIPATE IN THE EARLY LEARNING COLLABORATIVE ACT; AND FOR RELATED PURPOSES.
Summary
Senate Bill 2854 would create two new Mississippi income tax credits tied to early childhood care and prekindergarten participation. First, it allows taxpayers to claim a credit equal to child care expenses paid to a qualifying prekindergarten provider for a child who has not yet entered kindergarten and is four years old by September 1 of the school year. Second, it allows qualifying prekindergarten providers to claim a credit of $1,500 multiplied by the average monthly number of children attending the provider’s prekindergarten program.
The bill defines eligible prekindergarten providers broadly to include public, private, or parochial schools, licensed child care centers, and Head Start centers that participate in the voluntary prekindergarten program established under the Early Learning Collaborative Act of 2013. Any unused credit claimed under the section would be treated as an overpayment and refunded from current collections. The act would take effect January 1, 2026, and the new provision would be codified in Title 27, Chapter 7 of the Mississippi Code.
Impact
SB2854 would amend Mississippi’s income tax law by adding a new refundable credit for certain child care expenses and a separate provider-side credit for participating prekindergarten programs. It would directly affect taxpayers with eligible young children, as well as schools, child care centers, and Head Start programs that participate in the state’s voluntary prekindergarten system. The measure would also create a new fiscal obligation on the state through refundable credits paid from current collections, potentially reducing general fund revenue.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the overall sentiment appears supportive of expanding early childhood education access and easing child care costs. The bill’s framing suggests a policy goal of encouraging participation in the Early Learning Collaborative Act and supporting providers that serve prekindergarten children. No contrary positions are documented in the supplied record.
Contention
The main policy questions likely center on cost and eligibility. Because the credits are refundable, opponents could be concerned about the revenue impact and the use of current collections to pay refunds. There may also be debate over whether the credit should be limited to providers participating in the voluntary prekindergarten program, and whether the provider credit amount of $1,500 per average monthly child is sufficient or appropriately targeted. No specific objections or named opponents appear in the provided transcripts or vote history.