Income tax credit; revise for employers providing dependent child care or child care stipends.

Child-care tax credit for employers

Beginning July 1, 2026, eligible employers receive a Mississippi income tax credit worth 50% of qualifying dependent-care costs, up to $3,000 per child each year. Qualifying care includes care provided directly, care arranged through a provider, or a stipend of at least $2,000 per child paid directly to a licensed or registered Mississippi provider for care during work hours. Eligible settings include licensed programs averaging at least six children age 12 or younger, approved family care homes serving five or fewer children or older adults, and community or work-site programs for teens, adult relatives, or dependents with disabilities. Employers must report the employees receiving stipends, stipend amounts, and provider identification and license or registration numbers; the proper state agency must certify the program when payment is made. Eligible costs are net of reimbursements, and employers cannot also deduct expenses used for the credit or transfer the credit to another business. Unused credits carry forward for five years, but are not refundable or carried forward after that; total credits allocated each calendar year cannot exceed $1 million.