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Bill

HB 510

Income tax; provide a credit for taxpayers who claim a federal earned income tax credit.

2026 Regular Session Introduced by Percy Watson

Establishes Mississippi state income tax credit matching federal Earned Income Tax Credit to increase tax relief for low-to-moderate income working families.

Referred To Ways and Means
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Bill Summary · HB 510

Legislative bill overview

HB 510 would establish a state income tax credit for Mississippi taxpayers who claim the federal Earned Income Tax Credit (EITC). The credit would mirror the federal benefit, providing additional tax relief to low-to-moderate income working individuals and families at the state level.

Why is this important

The EITC is one of the largest anti-poverty programs in the United States, benefiting millions of working households. A state-level credit would increase the total tax benefit for eligible Mississippi residents, potentially putting more money back into low-income working families' pockets and supporting economic activity in communities with lower incomes.

Potential points of contention

  • State revenue impact: Creating a new tax credit reduces state tax revenue, which could require offsetting spending cuts or tax increases elsewhere
  • Cost and fiscal sustainability: The bill's fiscal note would clarify total estimated costs; unclear whether Mississippi can sustain this long-term without budgetary strain
  • Credit percentage: Whether the state credit should be a percentage of the federal credit (e.g., 10-25%) or a different structure affects affordability and benefit distribution

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

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