MS HB255

Authorizes a $750 tax credit for taxpayers with family income up to 400% of federal poverty level who pay child care expenses for dependent children under age 6 attending qualified child care centers for at least 8 months per year; provides refund for taxpayers with income below 250% of poverty level.

Allows qualified standard child care centers a refundable tax credit of up to $15,000 annually (calculated as $500 times average monthly children attending, whichever is less); qualified comprehensive child care centers receive up to $20,000 annually (calculated as $750 times average monthly children attending, whichever is less).

Provides refundable tax credits for teachers or directors employed at qualified child care centers for more than 9 months annually: $750 credit for standard child care center employees and $1,000 credit for comprehensive child care center employees.

Authorizes a non-refundable tax credit for taxpayers donating funds to qualified child care centers, limited to the lesser of actual donations or $5,000 per year; allows five-year carryforward of unused credits.

Applies to child care centers qualified as standard or comprehensive centers under the Mississippi Department of Human Services voluntary child care program; Department of Revenue authorized to promulgate implementing rules; effective January 1, 2019.