MISSISSIPPI LEGISLATURE
2023 Regular Session
To: Economic and Workforce Development; Finance
By: Senator(s) Parker, Branning, Boyd
AN ACT TO AMEND SECTION 57-73-23, MISSISSIPPI CODE OF 1972, TO ALLOW AN INCOME TAX CREDIT FOR AN EMPLOYER MAKING DIRECT PAYMENTS TO A LICENSED OR REGISTERED ENTITY FOR DEPENDENT CARE IN THE NAME OF AND FOR THE BENEFIT OF AN EMPLOYEE RESIDING IN MISSISSIPPI; TO SPECIFY THAT, IN THE CASE OF DEPENDENT CARE FACILITIES OPERATED BY AN EMPLOYER OR CONTRACTING WITH AN EMPLOYER, THE EXISTING CREDIT APPLIES WHEN THOSE FACILITIES ARE LOCATED IN THE STATE OF MISSISSIPPI; 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. A fifty percent
(50%) income tax credit shall be granted to any employer providing dependent
care for employees during the employee's work hours. Credit is applied to the
net cost of any contract executed by the employer for * * * a licensed or registered entity
in the State of Mississippi to provide dependent care for employees;
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 in the State of Mississippi; or
to the cost of any direct payment to a licensed or registered entity, in the name
of and for the benefit of an employee residing in the State of Mississippi, for
the sake of providing dependent care to the employee's children during the employee's
working hours. 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, including, where direct payments are made to a licensed or registered
entity to provide dependent care for children of employees, expenses incurred in
organizing and administering the direct payment program in the first year.
The credit allowed may not exceed Three Thousand Dollars ($3,000.00) for each
participating employee per year. 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.
Where direct payments are made to a licensed or registered entity to provide dependent care for children of employees, employers must retain information concerning the licensed or registered entity's federal identification number and license or registration number, together with the payment amounts and the name of the person in whose name and for whose benefit the payments were made.
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 of the employer or of the other entity providing dependent care must be located in the State of Mississippi. It also 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 Department of * * * Revenue.
SECTION 2. This act shall take effect and be in force from and after July 1, 2023.