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

HB 228 establishes a refundable state income tax credit equal to 10% of the federal Earned Income Tax Credit (EITC) claimed on a taxpayer's federal return. This credit directly benefits low- to moderate-income Mississippi taxpayers who qualify for the federal EITC, reducing their state tax bill or generating a refund if the credit exceeds their state tax liability (after accounting for other state credits). To claim the credit, taxpayers must file the federal EITC and submit their federal tax return along with required documentation to the Mississippi Department of Revenue. The credit becomes effective for tax years beginning January 1, 2025.