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

SB 2860 creates a refundable state income tax credit in Mississippi equal to 20% of the federal Earned Income Tax Credit (EITC) amount claimed on a taxpayer's federal return. It directly affects low-to-moderate income Mississippi residents who qualify for the federal EITC and file state taxes. The credit is refundable, meaning taxpayers receive a cash refund if the credit exceeds their state tax liability, and requires claiming the federal EITC and submitting federal return copies to the state. The bill takes effect January 1, 2026.