Mississippi HB 973: Income tax; provide a credit for taxpayers allowed to claim federal earned income tax credit.

Bill Text

HB 973 (As Introduced) - 2020 Regular Session 

MISSISSIPPI LEGISLATURE

2020 Regular Session

To: Ways and Means

By: Representative Watson

House Bill 973

AN ACT TO PROVIDE A STATE INCOME TAX CREDIT FOR TAXPAYERS 
CLAIMING THE FEDERAL EARNED INCOME TAX CREDIT; TO PROVIDE THE AMOUNT OF THE 
CREDIT; TO PROVIDE THAT IF THE AMOUNT OF CREDIT CLAIMED BY A TAXPAYER EXCEEDS 
THE AMOUNT OF INCOME TAX IMPOSED UPON THE TAXPAYER FOR THE TAXABLE YEAR, THEN 
THE TAXPAYER SHALL RECEIVE A REFUND FROM THE DEPARTMENT OF REVENUE FOR THE 
AMOUNT OF SUCH EXCESS; AND FOR RELATED PURPOSES.

���� BE IT ENACTED BY THE 
LEGISLATURE OF THE STATE OF MISSISSIPPI:

���� SECTION 1.� 
(1)� Any taxpayer allowed to claim a federal earned income tax credit under 26 
USCS Section 32, shall be allowed a refundable credit against the taxes imposed 
under this chapter in the manner prescribed in this section.� The amount of the 
credit shall be equal to ten percent (10%) of the amount of the federal credit 
allowed under 26 USCS Section 32 claimed by the taxpayer on the taxpayer's 
federal income tax return.� If the amount of credit claimed by a taxpayer 
exceeds the amount of income tax imposed upon the taxpayer for the taxable year 
reduced by the sum of all other credits allowable to the taxpayer under the 
state income tax laws, except credit for tax payments made by or on behalf of 
the taxpayer, then the taxpayer shall receive a refund from the Department of 
Revenue for the amount of such excess.

���� (2)� To obtain the credit 
provided for in this section, a taxpayer must claim the federal credit allowed 
under 26 USCS Section 32 on the taxpayer's federal income tax return and must 
provide a copy of such return and any other information required by the 
Department of Revenue.� 

���� SECTION 2.� Section 1 
of this act shall be codified as a new section in Chapter 7, Title 27, 
Mississippi Code of 1972.

���� SECTION 3.� Nothing 
in this act shall affect or defeat any claim, assessment, appeal, suit, right 
or cause of action for taxes due or accrued under the income tax laws before 
the date on which this act becomes effective, whether such claims, assessments, 
appeals, suits or actions have been begun before the date on which this act becomes 
effective or are begun thereafter; and the provisions of the income tax laws 
are expressly continued in full force, effect and operation for the purpose of 
the assessment, collection and enrollment of liens for any taxes due or accrued 
and the execution of any warrant under such laws before the date on which this 
act becomes effective, and for the imposition of any penalties, forfeitures or 
claims for failure to comply with such laws.

���� SECTION 4.� This act 
shall take effect and be in force from and after January 1, 2020.