MS HB113

Creates a $750 income tax credit per dependent child (under age 6) for families earning up to 400% of the federal poverty level who pay for care at qualified standard or comprehensive child care centers for at least 8 months; credit is refundable for families earning below 250% of poverty level

Provides refundable tax credits to qualified child care centers: standard centers receive $500 per child (capped at $15,000) and comprehensive centers receive $750 per child (capped at $20,000) based on average monthly enrollment

Grants refundable tax credits to teachers and directors employed at qualified child care centers for more than 9 months: $750 for those at standard centers and $1,000 for those at comprehensive centers

Unused tax credits may be carried forward for five consecutive years

Effective January 1, 2026