MS HB1344

Establishes the Mississippi Critical Needs School District Tax Credit Program to attract and retain teachers in school districts meeting specific criteria including low graduation rates, high teacher turnover, 65% or more low-income students, and shortages in critical subject areas.

First-year teachers who sign a four-year employment contract in a critical needs school district are eligible for a $1,200 annual income tax credit for each year of service, extendable for four additional years if they continue teaching in the same district.

First-year teachers must complete one full academic year to claim the credit and lose eligibility for remaining years if they leave their initial critical needs school district before the four-year commitment ends; teachers may transfer to other critical needs districts after completing four years.

Veteran teachers employed in critical needs school districts during the 2018-2019 school year are eligible for the same $1,200 annual tax credit through their tenth year of service, with the maximum eligibility period reduced by years of prior service in that district.

Tax credit is capped at $1,200 per year and cannot exceed the taxpayer's current year tax liability; unused credits cannot be carried forward to future tax years.