House Bill 1735

AN ACT TO AMEND SECTION 57-73-23, MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES AN INCOME TAX CREDIT FOR EMPLOYERS PROVIDING DEPENDENT CARE FOR EMPLOYEES DURING WORK HOURS, TO INCREASE THE AMOUNT OF THE TAX CREDIT; TO AUTHORIZE AN INCOME TAX CREDIT FOR EMPLOYERS WHO PROVIDE A CHILD CARE STIPEND TO BE USED FOR CHILD CARE DURING EMPLOYEES' WORK HOURS; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 57-73-23, Mississippi Code of 1972, is amended as follows:

57-73-23. (1) A * * *~~fifty percent (50%)~~ seventy-five percent (75%) income tax credit shall be granted to any employer providing dependent care for employees during the employee's work hours, and to any employer who provides a child care stipend of at least six thousand dollars ($6,000.00) to only be used for child care during the employee's work hours.

(2) In order to be eligible for the tax credit, an employer who provides a child care stipend under this section shall certify to the Mississippi Department of Revenue:

(a) The names of the employees receiving the stipend; and

(b) The amount of the stipend received by each of those employees; and

(c) The names, addresses, and taxpayer identification numbers or social security numbers of the child care providers paid by the employees with the child care stipend; and

(d) Such other information as may be required by the Department of Revenue to ensure that credits under this section are granted only to employers who provide stipends that are used by the employees only for child care.

(3) For an employer providing dependent care itself and for an employer contracting for dependent care for its employees during the employee's work hours, the credit is applied to the net cost of any contract executed by the employer for another entity to provide dependent care; or, if the employer elects to provide dependent care itself, to expenses of dependent care staff, learning and recreational materials and equipment, and the construction and maintenance of a facility; or if the employer elects to provide a child care stipend, the credit is applied to the amount of the stipend provided. Additional eligible expenses include net costs assumed by the employer which increase the quality, availability and affordability of dependent care in the community used by employees during the employee's work hours. This cost is net of any reimbursement. A deduction shall not be allowed for any expenses which serve as the basis for an income tax credit. The credits allowed under this section shall not be used by any business enterprise or corporation other than the business enterprise actually qualifying for the credits.

Credit may be carried forward for the five (5) successive years if the amount allowable as credit exceeds income tax liability in a tax year; however, thereafter, if the amount allowable as a credit exceeds the tax liability, the amount of excess shall not be refundable or carried forward to any other taxable year.

The facility must have an average daily enrollment for the taxable year of no less than six (6) children who are twelve (12) years of age or less and be licensed according to the regulations governing licensure of child care facilities in Mississippi; or must serve five (5) or fewer children and/or elderly adults in a family child care/elder care home approved by the Department of Health for participation in the United States Department of Agriculture child and adult nutrition program; or must serve children over twelve (12) years of age but less than eighteen (18) years of age in either a community-based facility or a facility at the employment site; or must serve adult relatives of employees in either a community-based elder care facility or a facility at the employment site; or must serve children or adult dependents having physical, emotional or mental disabilities in either a community-based facility or a facility at the employment site.

Employers will be certified as eligible for the tax credit by the * * * ~~Mississippi~~ State Department of Health for programs serving children twelve (12) years of age or younger and for programs serving elderly adults and by the * * *~~State Tax Commission~~ Department of Revenue for programs serving other dependents older than twelve (12) years of age.

SECTION 2. 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 3. This act shall take effect and be in force from and after January 1, 2023.