MS HB1431

Establishes the Mississippi Critical Needs School District Tax Credit Program to attract and retain teachers in critical needs school districts through income tax credits of up to $1,200 per year of service.

Defines critical needs school districts as those meeting all four mandatory criteria (low graduation rate, high student transience, high teacher turnover, 65% low-income enrollment) plus at least two of four additional criteria (high English language learners/special education rates, shortage in critical subjects, few advanced-degree teachers).

Provides first-year teachers a tax credit for up to 10 years of service if they commit to four-year terms in critical needs districts, with the credit lost if they leave before completing each four-year commitment period.

Provides veteran teachers (employed in the district during 2019-2020 school year) a tax credit through their tenth year of service, with the maximum eligibility reduced by years already served before 2019-2020.

Effective July 1, 2020; establishes Section 27-7-22.42 of Mississippi Code allowing the tax credit against income tax liability with no carryforward of unused credits.