Mississippi Senate Bill SB2491

Mississippi 2024 Regular Session

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

Caption

Income tax; provide credit for taxpayers claiming federal Earned Income Tax Credit.

Impact

If enacted, SB2491 would provide a direct financial benefit to eligible taxpayers, which could improve their overall financial situation. The refundable nature of the credit ensures that if the taxpayer’s credit exceeds their tax liability, they will receive a refund from the Mississippi Department of Revenue for the excess amount. This could encourage more residents to file their taxes, securing state revenue and ensuring families benefit from available credits.

Summary

Senate Bill 2491 proposes a state income tax credit for Mississippi taxpayers who qualify for the federal Earned Income Tax Credit (EITC). The bill specifies that the credit will amount to five percent (5%) of the federal credit claimed on the taxpayer's federal income tax return. This initiative aims to provide financial relief to lower-income residents who are eligible for the EITC, thereby enhancing their disposable income and stimulating local economies.

Contention

While the bill is designed to aid low-income families, there could be concerns regarding its long-term fiscal impact on state revenues. Legislators might debate the sustainability of additional tax credits amid existing budget constraints. Moreover, some may argue that while the credit assists individuals directly, it doesn't address systemic issues affecting larger populations such as income inequality or access to employment opportunities. Discussions in legislative sessions may also focus on whether the provisions are broad enough to encompass all eligible taxpayers effectively.