Mississippi House Bill HB914

Mississippi 2023 Regular Session

• Introduced: 1/16/23
• Refer: 1/16/23
• Failed: 2/22/23

Caption

Income tax; provide a credit for taxpayers allowed to claim federal earned income tax credit.

Impact

The introduction of HB 914 may significantly impact state tax laws by providing an additional layer of tax relief for those eligible for the federal EITC. It establishes a direct monetary benefit that can help reduce the overall income tax liability for many taxpayers in Mississippi, particularly benefiting working families. By granting these credits and allowing refunds when credits exceed tax liabilities, the bill encourages economic stability and growth among lower-income households.

Summary

House Bill 914 proposes a state income tax credit for residents who claim the federal earned income tax credit (EITC). This bill aims to provide taxpayers with a refundable credit that equals ten percent (10%) of the federal EITC claimed on their federal income tax return. The intention is to alleviate the tax burden on low- to moderate-income individuals and families who benefit from the federal EITC, thus enhancing financial support for these taxpayers at the state level.

Contention

Although supporters laud the bill as a necessary step to aid struggling families, there may be concerns regarding its fiscal implications for the state budget. Opponents might argue that the tax credits could lead to decreased tax revenues, placing additional strain on state services. Furthermore, the requirement to link state credits to an already existing federal program may provoke discussions on the complexity of tax code and administrative burdens that could arise in processing and verifying claims for the credit.