MS HB225

Authorizes a $750 income tax credit for taxpayers with family income up to 400% of federal poverty level who pay for dependent children under age 6 to attend qualified child care centers for at least 8 months per year; provides refund if income is below 250% of poverty level; allows 5-year carryforward of unused credits.

Establishes refundable tax credits for qualified child care centers: $500 per average monthly child (capped at $15,000) for standard centers and $750 per average monthly child (capped at $20,000) for comprehensive centers.

Provides refundable tax credits of $750 for teachers or directors employed at standard child care centers and $1,000 for those at comprehensive child care centers, requiring more than 9 months of employment in the tax year.

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

Credits apply only to centers qualified under the Mississippi Department of Human Services voluntary child care program; Department of Revenue authorized to promulgate implementing rules; effective January 1, 2021.