MS HB227

Authorizes a $750 tax credit for taxpayers with income up to 400% of federal poverty level who pay child care expenses at qualified standard or comprehensive child care centers, with the dependent child attending for at least 8 months and being under age 6.

Makes the credit refundable for taxpayers with income below 250% of federal poverty level, allowing them to receive a refund for any excess credit beyond their tax liability; unused credits may be carried forward for 5 years.

Provides a refundable tax credit for qualified child care center operators: $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.

Authorizes a refundable tax credit 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 during the tax year.

Effective January 1, 2025, with the Department of Revenue authorized to promulgate rules and regulations for implementation.