Senate Bill 2898

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR TAXPAYERS IN AN AMOUNT EQUAL TO CHILD CARE EXPENSES PAID BY TAXPAYERS FOR CHILD CARE FOR THEIR CHILDREN TO PREKINDERGARTEN PROVIDERS WHO PARTICIPATE IN THE EARLY LEARNING COLLABORATIVE ACT OF 2013; TO AUTHORIZE A TAX CREDIT FOR PREKINDERGARTEN PROVIDERS WHO PARTICIPATE IN THE EARLY LEARNING COLLABORATIVE ACT; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) As used in this section:

(a) "Prekindergarten provider" means a public, private or parochial school, licensed child care center or Head Start Center that serves prekindergarten children and participates in the voluntary prekindergarten program established in Section 37-21-51(3).

(b) "Child" means any child who has not entered kindergarten but who will have obtained four (4) years on or before September 1 of a school year.

(2) A taxpayer shall be allowed a credit against the taxes imposed under this chapter for child care expenses paid to a prekindergarten provider for child care for such taxpayer's child in an amount equal to the expenses paid to such prekindergarten provider.

(3) A prekindergarten provider shall be allowed a credit against the taxes imposed under this chapter in the amount of One Thousand Five Hundred Dollars ($1,500.00) multiplied by the average monthly number of children who are attending the prekindergarten program provided by the prekindergarten provider.

(4) Any tax credit claimed under this section but not used in the taxable year in which it is claimed shall constitute an overpayment of taxes and shall be refunded to the taxpayer from current collections.

SECTION 2. Section 1 of this act shall be codified in Title 27, Chapter 7, Mississippi Code of 1972.

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