MS HB204

Allows taxpayers with income up to 400% of federal poverty level a $750 tax credit per dependent child for child care expenses at qualified standard or comprehensive child care centers, with the credit becoming refundable for those below 250% of poverty level.

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

Grants refundable tax credits of $750 to teachers/directors at standard child care centers and $1,000 to those at comprehensive child care centers who work more than 9 months during the tax year.

Allows taxpayers a non-refundable tax credit for donations to qualified child care centers, limited to the lesser of actual donations or $5,000, with ability to carry forward unused credits for 5 years.

Requires the Department of Revenue to promulgate rules and regulations for implementation and makes the act effective January 1, 2024.