MISSISSIPPI LEGISLATURE

2023 Regular Session

To: Finance

By: Senator(s) Boyd, Branning, Caughman, McCaughn

Senate Bill 2696

(As Passed the Senate)

AN ACT TO AMEND SECTION 27-7-22.32, MISSISSIPPI CODE OF 1972, TO REVISE THE TERMS OF THE INCOME TAX CREDIT FOR DEPENDENT CHILDREN LEGALLY ADOPTED UNDER THE LAWS OF THIS STATE; TO ALLOW A CREDIT IN THE AMOUNT OF THE QUALIFIED ADOPTION EXPENSES PAID OR INCURRED, NOT TO EXCEED $5,000.00, FOR EACH DEPENDENT CHILD RESIDING OUTSIDE MISSISSIPPI; TO ALLOW A CREDIT IN THE AMOUNT OF $7,500.00 FOR EACH DEPENDENT CHILD RESIDING IN MISSISSIPPI; TO REMOVE THE REVERTER EFFECTIVE JANUARY 1, 2024, WHICH WOULD LOWER TO $2,500.00 THE MAXIMUM AMOUNT OF THE CREDIT PER CHILD ADOPTED; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Section 27-7-22.32, Mississippi Code of 1972, is amended as follows:

 * * * [Through December 31, 2023, this section shall read as follows:]

     27-7-22.32.  (1)  (a)  There shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified adoption expenses paid or incurred, * * * not to exceed Two Thousand Five Hundred Dollars ($2,500.00), for each dependent child legally adopted by a taxpayer under the laws of this state during calendar year 2006 or during any calendar year thereafter through calendar year 2017, and not to exceed Five Thousand Dollars ($5,000.00), for each dependent child residing outside Mississippi but legally adopted by a taxpayer under the laws of this state during calendar year 2023 or during any calendar year thereafter.  A taxpayer claiming a credit under this paragraph (a) may not claim a credit under paragraph (b) of this subsection for the adoption of the same child.

          (b)  There shall be allowed as a credit against the tax imposed by this chapter the amount of * * * Five Thousand Dollars ($5,000.00) Seven Thousand Five Hundred Dollars ($7,500.00) for each dependent child residing in Mississippi and legally adopted by a taxpayer under the laws of this state * * * through the Mississippi Department of Child Protection Services during calendar year * * * 2018 2023 or during any calendar year thereafter.  A taxpayer claiming a credit under this paragraph (b) may not claim a credit under paragraph (a) of this subsection for the adoption of the same child.

     (2)  The tax credit under this section may be claimed for the taxable year in which the adoption becomes final under the laws of this state.  Any tax credit claimed under this section but not used in any taxable year may be carried forward for the five (5) succeeding tax years.  A tax credit is allowed under this section for any child for which an exemption is claimed during the same taxable year under Section 27-7-21(e).  For the purposes of this section, the term "qualified adoption expenses" means and has the same definition as that term has in * * * 26 USCS 36C 26 USCA 23.

 * * * [From and after January 1, 2024, this section shall read as follows:]

27‑7‑22.32.  There shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified adoption expenses paid or incurred, not to exceed Two Thousand Five Hundred Dollars ($2,500.00), for each dependent child legally adopted by a taxpayer under the laws of this state during calendar year 2006 or during any calendar year thereafter.  The tax credit under this section may be claimed for the taxable year in which the adoption becomes final under the laws of this state.  Any tax credit claimed under this section but not used in any taxable year may be carried forward for the three (3) succeeding tax years.  A tax credit is allowed under this section for any child for which an exemption is claimed during the same taxable year under Section 27‑7‑21(e).  For the purposes of this section, the term "qualified adoption expenses" means and has the same definition as that term has in 26 USCS 36C.

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

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