MS HB378

Exempts from gross income any compensation earned by licensed psychiatrists and psychologists providing mental health services to low-income Medicaid patients in state-designated critical mental health services shortage areas.

Requires the Department of Mental Health to annually designate by December 31 which areas of the state qualify as critical mental health services shortage areas based on availability of mental health services.

Directs the Department of Revenue to promulgate rules and regulations necessary to implement and administer this income tax exemption in accordance with Mississippi Administrative Procedures Law.

Amends Section 27-7-15 of the Mississippi Code to add this income exemption as paragraph (qq) to the list of items excluded from gross income taxation.

Effective date: January 1, 2022.