Mississippi Senate Bill SB2472

Mississippi 2024 Regular Session

• Introduced: 2/16/24
• Refer: 2/16/24
• Failed: 3/27/24

Caption

Income tax; authorize a credit for dependent care equal to that allowed for federal income tax purposes.

Impact

If enacted, SB2472 will introduce a new tax credit which would be codified under Title 27, Chapter 7 of the Mississippi Code of 1972. By aligning state tax law with federal provisions, the bill seeks to simplify the tax filing process for eligible residents and potentially enhance their financial capacity. The expected benefits include increased disposable income for families utilizing dependent care services, which could lead to broader economic implications as families may have more funds to invest in their communities.

Summary

Senate Bill 2472 aims to provide an income tax credit in the state of Mississippi that is equivalent to the federal household and dependent care services credit specified under Section 21 of the Internal Revenue Code. This initiative is designed to support families by enabling them to receive tax relief for expenses incurred in caring for dependents necessary for gainful employment. This legislative effort signifies an acknowledgment of the challenges that working families face in balancing work and caregiving responsibilities.

Contention

While the bill is anticipated to provide significant benefits, there may be discussions regarding the financial implications of introducing this tax credit on the state's budget. Legislators may debate whether the cost of administering this credit and the potential reduction in state tax revenue can be justified by the expected positive outcomes for Mississippi's working families. Concerns may also arise about ensuring that the credit reaches those most in need and does not disproportionately benefit higher-income families who are more likely to utilize child and dependent care services.