Bill Text: MS SB2696 | 2023 | Regular Session | Enrolled
Bill Title: Income tax credit for qualified adoption expenses; increase amount for Mississippi children and remove CPS requirement.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Passed) 2023-04-19 - Approved by Governor [SB2696 Detail]
Download: Mississippi-2023-SB2696-Enrolled.html
MISSISSIPPI LEGISLATURE
2023 Regular Session
To: Finance
By: Senator(s) Boyd, Branning, Caughman, McCaughn
Senate Bill 2696
(As Sent to Governor)
AN ACT TO AMEND SECTION 27-7-22.32, MISSISSIPPI CODE OF 1972, TO REVISE THE TERMS OF THE INCOME TAX CREDIT FOR DEPENDENT CHILDREN LEGALLY ADOPTED UNDER THE LAWS OF THIS STATE; TO ALLOW A CREDIT IN THE AMOUNT OF THE QUALIFIED ADOPTION EXPENSES PAID OR INCURRED, NOT TO EXCEED $5,000.00, FOR EACH DEPENDENT CHILD RESIDING OUTSIDE MISSISSIPPI; TO ALLOW A CREDIT IN THE AMOUNT OF $10,000.00 FOR EACH DEPENDENT CHILD RESIDING IN MISSISSIPPI; TO REMOVE THE REVERTER EFFECTIVE JANUARY 1, 2024, WHICH WOULD LOWER TO $2,500.00 THE MAXIMUM AMOUNT OF THE CREDIT PER CHILD ADOPTED; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-7-22.32, Mississippi Code of 1972, is amended as follows:
* * *
27-7-22.32. (1) (a) There
shall be allowed as a credit against the tax imposed by this chapter the amount
of the qualified adoption expenses paid or incurred, * * * not to exceed Five Thousand Dollars ($5,000.00),
for each dependent child residing outside Mississippi but legally adopted
by a taxpayer under the laws of this state during calendar year 2023 or during
any calendar year thereafter. A taxpayer claiming a credit under this paragraph
(a) may not claim a credit under paragraph (b) of this subsection for the adoption
of the same child.
(b) There shall be allowed
as a credit against the tax imposed by this chapter the amount of * * * Ten Thousand
Dollars ($10,000.00) for each dependent child residing in Mississippi and
legally adopted by a taxpayer under the laws of this state * * *
during calendar year * * *
2023 or during any calendar year thereafter. A taxpayer claiming a credit
under this paragraph (b) may not claim a credit under paragraph (a) of this subsection
for the adoption of the same child.
(2) The tax credit under this
section may be claimed for the taxable year in which the adoption becomes final
under the laws of this state. Any tax credit claimed under this section but not
used in any taxable year may be carried forward for the five (5) succeeding tax
years. A tax credit is allowed under this section for any child for which an exemption
is claimed during the same taxable year under Section 27-7-21(e). For the purposes
of this section, the term "qualified adoption expenses" means and has
the same definition as that term has in * * * 26 USCA 23.
* * *
SECTION 2. This act shall take effect and be in force from and after July 1, 2023.
