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

HB 202 creates a Mississippi state income tax credit of $1,200 per child for taxpayers who claim the federal child tax credit on their federal return. It directly affects Mississippi families with children who qualify for the federal credit but may not have received a state-level benefit. The credit can be carried forward for up to five years if not fully used in a single tax year. The bill takes effect January 1, 2026, and requires taxpayers to provide proof of their federal credit claim to the Mississippi Department of Revenue.