House Bill 505

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR TAXPAYERS WHO PROVIDE PAID MATERNITY LEAVE AND PAID PATERNITY LEAVE FOR EMPLOYEES; TO PROVIDE ELIGIBILITY CRITERIA FOR THE TAX CREDIT; TO PROVIDE FOR THE AMOUNT OF THE CREDIT; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) As used in this section, the following words and phrases shall have the meanings ascribed in this section unless the context clearly indicates otherwise:

(a) "Maternity leave" means leave provided by a taxpayer for female employees of the taxpayer for pregnancy, childbirth, adoption, or foster placement of a child.

(b) "Paternity leave" means leave provided by a taxpayer for male employees of the taxpayer for pregnancy, childbirth, adoption, or foster placement of a child.

(2) (a) Any taxpayer who provides paid maternity leave and paid paternity leave for employees of the taxpayer shall be allowed a credit against the taxes imposed under this chapter in the manner provided in this section. In order to be eligible for the tax credit under this section, a taxpayer must have a written policy in place providing at least six (6) weeks of annual paid maternity leave and paid paternity leave for all full-time employees and at least a proportionate amount of annual paid maternity leave and paid paternity leave for all part-time employees. The written policy also must provide for payment of at least fifty percent (50%) of the wages normally paid to an employee.

(b) The tax credit shall be for a minimum amount equal to twelve and one-half percent (12.5%) increased to a maximum amount equal to twenty-five percent (25%) of the amount of wages paid to an employee while on paid maternity leave or paternity paid leave, as the case may be, for up to twelve (12) weeks per taxable year. The percentage shall increase from twelve and one-half percent (12.5%) by increments of twenty-five one-hundredths percent (0.25%) for each percentage point by which the amount paid to an employee exceeds fifty percent (50%) of the wages normally paid to the employee. However, the aggregate amount of tax credits that may be used by a taxpayer under this section in a taxable year shall not exceed the amount of tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to the taxpayer under this chapter, except credit for tax payments made by or on behalf of the taxpayer. Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) consecutive years from the close of the tax year in which the credit was earned.

SECTION 2. Section 1 of this act shall be codified as a separate 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, 2023.