Senate Bill 2867
Employer Provided Child Care Tax Credit
Caps income tax credit for employers at $3,000 per year per child for child care.
- Committees: Finance
- Author: Nicole Boyd
- Session: 2026
Approved by Governor (100%)
Explanation of the Bill
Senate Bill 2867 amends Section 57-73-23 of the Mississippi Code to revise the employer-provided child care tax credit. The bill caps the credit at up to $3,000 per year per child and adjusts the required stipend amount employers must provide to a minimum of $2,000 in order to qualify. Previously, employers had to provide a stipend valued at a minimum of $6,000.
Additionally, Senate Bill 2867 clears up existing statute to ensure that stipends are used to support licensed or registered childcare programs.
The committee substitute adds an overall cap for the tax credit, which would allow up to $1M in tax credits per tax year.
If enacted, Senate Bill 2867 would make it more affordable for employers to provide a childcare stipend to their employees. At the same time, capping the credit at $3,000 per child and limiting the overall credit to $1M may limit the financial impact for employers and families. The overall effect will also depend on employer uptake and the cost of child care in different regions of the state.
Updates to the Bill
On January 19, SB 2867 was referred to the Senate Finance Committee.
On February 19, the Senate Finance Committee passed SB 2867.
On February 25, the committee substitute was adopted for SB 2867 and the bill passed the Senate.
On February 26, SB 2867 was referred to the House Ways and Means Committee.