MS HB401

Creates a refundable income tax credit for licensed teachers employed by public school districts in "small towns" (cities, towns, or villages with populations of 5,000 or fewer according to the most recent federal census)

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

Makes the credit refundable, meaning if the credit amount exceeds the taxpayer's income tax liability for the year, the Department of Revenue will refund the excess to the taxpayer

Requires teachers to provide documentation on a Department of Revenue form verified by the school district superintendent confirming at least 3 consecutive years of active service as a licensed teacher

Effective January 1, 2019