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HB 227

Income tax; authorize credit for certain child care expenses, child care centers and child care teachers and directors.

2025 Regular Session

Mississippi bill proposing income tax credits for child care expenses and child care worker incentives, died in committee without advancing.

Died In Committee
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Bill Summary · HB 227

Legislative bill overview

HB 227 would establish income tax credits for Mississippi taxpayers who incur child care expenses, as well as potential tax incentives for child care centers and their staff (teachers and directors). The bill aimed to make child care more affordable and support the child care workforce through the state's tax code.

Why is this important

Child care costs represent a significant household expense that can limit parental workforce participation, particularly for lower and middle-income families. Tax credits can improve affordability while also addressing workforce shortages in child care by incentivizing employment in the sector.

Potential points of contention

  • Revenue impact: Tax credits reduce state income tax revenue, raising questions about fiscal feasibility and whether funds should come from budget cuts or other sources
  • Design specifics: Unclear whether credits would be refundable (benefiting lower-income workers most) or non-refundable, and what income limits or caps might apply
  • Scope of coverage: Determining which child care expenses qualify (center-based only, family care, summer programs, etc.) affects both cost and who benefits most
  • Workforce incentives: Questions about whether tax credits for providers/centers are an effective or equitable way to improve worker compensation and retention

Compiled from official sources — confirm details with the bill’s official record.

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