MS HB4058

Employers providing child care stipends to employees become eligible for a 50% income tax credit with a reduced minimum stipend requirement of $2,000 per child (down from $6,000), with direct payments made to licensed or registered child care entities in Mississippi.

The tax credit for employer-provided child care is capped at $3,000 per year for each child of a participating employee.

Employers claiming the stipend-based credit must certify to the Department of Revenue the names of participating employees, stipend amounts, and information about the licensed child care entity receiving payment, including its federal ID and State Department of Health Registry license number.

The bill brings forward existing provisions creating the Mississippi Office of Workforce Development and 31-member State Workforce Investment Board without substantive changes to those sections.

The amendments take effect January 1, 2026.