MS SB2897

Creates a refundable state income tax credit equal to 5% of the federal Earned Income Tax Credit (EITC) amount claimed on federal returns.

Allows taxpayers to receive a refund from the Department of Revenue if the state credit exceeds their state income tax liability after accounting for all other allowable credits.

Requires taxpayers to claim the federal EITC on their federal return and provide a copy of the return and any other information required by the Department of Revenue.

Does not affect any tax claims, assessments, appeals, or actions that arose before the effective date of the act.

Takes effect January 1, 2023.