MS HB721

Allows Mississippi taxpayers who claim the federal Earned Income Tax Credit (EITC) under 26 USCS Section 32 to claim a refundable state income tax credit equal to 5% of their federal EITC amount.

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

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

Preserves all existing tax assessment, collection, and enforcement proceedings for taxes accrued before the law's effective date.

Takes effect January 1, 2025.