MS SB2965

Establishes an income tax credit for Mississippi taxpayers who provide paid maternity leave and paid paternity leave to employees.

Requires eligible taxpayers to have a written policy providing at least 6 weeks of annual paid leave for full-time employees and proportionate leave for part-time employees, with wages paid at minimum 50% of normal wages.

Credits range from 12.5% to 25% of wages paid during leave, increasing by 0.25% for each percentage point above the 50% minimum wage threshold, covering up to 12 weeks per tax year.

Annual aggregate tax credits statewide cannot exceed $5,000,000, with unused credits allowed to carry forward for 5 consecutive years.

Effective January 1, 2023.