House Bill 199

AN ACT TO PROVIDE A STATE INCOME TAX CREDIT FOR CERTAIN HOUSEHOLD AND DEPENDENT CARE SERVICE EXPENSES NECESSARY FOR EMPLOYMENT WHICH ARE CLAIMED BY A TAXPAYER AS A FEDERAL DEPENDENT CARE INCOME TAX CREDIT; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) For any taxpayer allowed to claim a federal income tax credit under 26 USCS Section 21 for household and dependent care service expenses necessary for gainful employment, a credit shall be allowed against the taxes imposed under this chapter in the manner prescribed in this section. The amount of the credit shall be equal to the lesser of the amount of the federal credit allowed under 26 USCS Section 21 claimed for such expenses by the taxpayer on the taxpayer's federal income tax return or the amount of income tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to such taxpayer under this chapter, except credit for tax payments made by or on behalf of the taxpayer. In the case of married individuals filing separate returns, each person may claim an amount not to exceed one-half (1/2) of the tax credit that would have been allowed for a joint return.

(2) To obtain the credit provided for in this section, a taxpayer must claim the federal credit allowed under 26 USCS Section 21 on the taxpayer's federal income tax return and must provide a copy of such return and any other information required by the State Tax Commission.

SECTION 2. Section 1 of this act shall be codified as a separate code 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, 2005.