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Bill

HB 1106

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

2025 Regular Session Introduced by Percy Watson

Mississippi would create a state income tax credit for residents claiming the federal Earned Income Tax Credit, increasing tax relief for low-to-moderate income working families.

Died In Committee
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Bill Summary · HB 1106

Legislative bill overview

HB 1106 would create a state income tax credit for Mississippi taxpayers who claim the federal Earned Income Tax Credit (EITC). The credit would allow low-to-moderate income working individuals and families to reduce their state tax liability based on their federal EITC eligibility, effectively piggybacking Mississippi's tax system onto the existing federal program.

Why is this important

The EITC is one of the largest anti-poverty programs in the U.S., primarily benefiting working families earning between roughly $15,000-$60,000 annually. A state-level credit would increase the total tax relief available to these workers, potentially improving financial stability for low-income households and reducing their overall tax burden during a period of economic pressure.

Potential points of contention

  • State revenue impact: Creating a new tax credit reduces state tax revenue, requiring either budget cuts elsewhere or increased revenues from other sources, which may face fiscal conservatism concerns
  • Program structure uncertainty: The bill doesn't specify the credit amount, percentage match, or whether it mirrors the federal EITC exactly, leaving critical design questions unanswered
  • Targeting philosophy: Some may argue credits should be broad-based rather than targeted to specific income groups, while others contend low-income support is a legitimate state priority

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

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