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HB 720

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

2025 Regular Session Introduced by Zakiya Summers

HB 720 would create a Mississippi state income tax credit for families claiming the federal child tax credit, reducing state taxes for eligible parents.

Died In Committee
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Bill Summary · HB 720

Legislative bill overview

HB 720 would establish a state income tax credit for Mississippi taxpayers who claim the federal child tax credit on their federal returns. The credit would allow eligible families to reduce their state tax liability based on the number of qualifying children, mirroring the federal tax benefit at the state level.

Why is this important

This bill addresses whether Mississippi should provide additional tax relief to families with children through its state tax system. Since the federal child tax credit provides substantial annual benefits (up to $2,000 per child), a state-level credit could meaningfully increase take-home income for working families, though the fiscal impact on state revenues would depend on the credit's structure and generosity.

Potential points of contention

  • Fiscal cost: The bill's revenue impact is unclear without knowing if it's a full mirror of the federal credit or a partial credit, which affects state budget priorities and potential offsets
  • Income targeting: Whether the credit should phase out at higher incomes, as some argue benefits should target lower-income families most in need of relief
  • Program design details: The bill's text doesn't specify key mechanics (percentage of federal credit, eligibility requirements, or implementation method), making assessment of fairness and effectiveness difficult

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

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