HB 1406 Summary

• Establishes the Mississippi Critical Needs School District Tax Deduction Program to attract and retain teachers in school districts designated as having critical needs based on low graduation rates, high teacher turnover, high poverty rates, and other specified criteria.

• First-year teachers who commit to four years of service in a critical needs school district are eligible for up to $20,000 annual income tax deduction for each year of service, potentially continuing for up to ten years if they remain or transfer to another critical needs district.

• Veteran teachers already employed in critical needs school districts as of the 2019-2020 school year are eligible for up to $20,000 annual income tax deduction for up to ten years, reduced by years already served before 2019-2020.

• Teachers who leave their initial critical needs school district before completing the four-year commitment become ineligible for further deductions and have their maximum eligibility years reduced accordingly.

• Amends Section 27-7-15 of Mississippi Code to exclude from gross income up to $20,000 per year in teacher compensation for service rendered in critical needs school districts, effective July 1, 2020.