MS HB38

Creates a refundable income tax credit for licensed teachers employed by public school districts in municipalities with populations of 5,000 or fewer persons.

Provides a $2,500 tax credit for teachers with 3-5 years of consecutive service in a small town, and $5,000 for teachers with more than 5 years of service.

Allows taxpayers to receive a refund from the Department of Revenue if the tax credit exceeds their total income tax liability for the taxable year.

Requires teachers to submit documentation verified by their school district superintendent confirming at least 3 consecutive years of active service as a licensed teacher.

Takes effect January 1, 2018.