Income tax; provide credit for taxpayers claiming federal Earned Income Tax Credit.

SB 2085 would create a refundable state income tax credit equal to 20% of the federal Earned Income Tax Credit (EITC) claimed by Mississippi taxpayers. It directly affects low-to-moderate income workers who qualify for the federal EITC and file state taxes. The bill ensures these taxpayers receive a cash refund if the state credit exceeds their state tax liability, rather than losing the excess. The credit would begin on January 1, 2025, if enacted. (Note: The bill died in committee on February 26, 2025, so this remains a proposed policy.)