Mississippi House Bill HB96

Mississippi 2022 Regular Session

• Introduced: 1/4/22
• Refer: 1/4/22
• Failed: 2/23/22

Caption

Income tax; authorize credit for certain child care expenses, child care centers and child care center teachers and directors.

Impact

The bill also introduces refundable tax credits for standard and comprehensive child care centers, as well as for teachers or directors working in these facilities. For instance, teachers in standard centers can receive a credit of $750 while those in comprehensive centers may receive up to $1,000, provided they have been employed for more than nine months during the year. Furthermore, individuals who donate funds to these child care centers can receive credits for their contributions, fostering increased community involvement and support for child care facilities.

Summary

House Bill 96 aims to authorize an income tax credit for taxpayers who incur child care expenses for a dependent child attending a qualifying child care center as defined under the Mississippi Department of Human Services' voluntary child care program. The bill specifies that eligible taxpayers must have income not exceeding 400% of the federal poverty level and that the dependent child must be under six years of age while attending a qualifying center for at least eight months of the year. A tax credit of $750 per child is proposed, which can be claimed against taxes imposed on the taxpayer.

Contention

While the intent of HB96 addresses the increasing costs of child care and aims to support families, there may be discussions regarding the sufficiency of the proposed credit amounts in actually alleviating financial burdens faced by families. Additionally, there could be debate on whether the eligibility criteria effectively cover those in most need, especially considering the defined income thresholds. The issue of potential implications for state revenue due to the introduction of refundable and standard tax credits is likely to be another point of contention among policymakers.