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HB 721

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

2025 Regular Session Introduced by Zakiya Summers

Mississippi bill creates state income tax credit for workers claiming federal Earned Income Tax Credit, expanding tax relief for low-income working families.

Died In Committee
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Bill Summary · HB 721

Legislative bill overview

HB 721 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, essentially mirroring federal support at the state level.

Why is this important

The EITC is one of the largest anti-poverty programs in the U.S., benefiting millions of working families. A state-level credit would increase financial relief for low-income workers in Mississippi, potentially reducing poverty and improving economic security for families already participating in the federal program. This could also increase state tax compliance and return filing rates among eligible populations.

Potential points of contention

  • Revenue impact: State treasury officials may oppose the bill due to lost tax revenue, particularly if the credit is substantial or refundable rather than non-refundable
  • Program design details: Questions about credit percentage (full match, partial match), refundability, income phase-out ranges, and eligibility criteria were likely unresolved before the bill died
  • Fiscal priorities: Competing budget demands and disagreements about whether state resources should fund federal program supplements rather than other state initiatives

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

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