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

HB 112 creates a refundable state income tax credit equal to 10% of the federal Earned Income Tax Credit (EITC) claimed on a taxpayer's federal return. It directly affects Mississippi taxpayers who qualify for the federal EITC, allowing them to receive a state credit that may result in a refund if it exceeds their state tax liability. To claim the credit, taxpayers must first claim the federal EITC and submit their federal return and required documentation to the Mississippi Department of Revenue. The credit becomes effective January 1, 2025.