MISSISSIPPI LEGISLATURE

2023 Regular Session

To: Ways and Means

By: Representative Roberson

House Bill 262

AN ACT TO AMEND SECTION 27-7-22.32, MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES AN INCOME TAX CREDIT FOR EXPENSES INCURRED FOR THE ADOPTION OF A CHILD, TO EXTEND THE DATE OF THE REVERTER ON THE PROVISION OF LAW THAT INCREASES THE MAXIMUM AMOUNT OF THE TAX CREDIT FROM $2,500.00 TO $5,000.00 PER CHILD AND THE PROVISION THAT AUTHORIZES AN INCOME TAX CREDIT FOR A CHILD ADOPTED THROUGH THE MISSISSIPPI DEPARTMENT OF CHILD PROTECTION SERVICES; 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 2026, 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 legally adopted by a taxpayer under the laws of this state 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) for each dependent child legally adopted by a taxpayer under the laws of this state through the Mississippi Department of Child Protection Services during calendar year 2018 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 23.

     [From and after January 1, * * * 2024 2027, 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 23.

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