MS HB8

Authorizes a refundable income tax credit for licensed teachers employed by school districts in "small towns" defined as cities, towns, or villages with populations of 5,000 or fewer persons.

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

Makes the credit refundable, meaning teachers receive a refund from the Department of Revenue if the credit amount exceeds their income tax liability for the year.

Requires teachers to submit documentation verified by their school district superintendent proving at least 3 consecutive years of active licensed teaching service to claim the credit.

Takes effect January 1, 2020 and is codified as a new section in Chapter 7, Title 27 of the Mississippi Code.