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

HB 510 creates a refundable Mississippi state income tax credit equal to 10% of a taxpayer's federal Earned Income Tax Credit (EITC) amount. It directly affects Mississippi taxpayers who qualify for and claim the federal EITC on their federal tax return. The credit is refundable, meaning if it exceeds the taxpayer's state income tax liability (after other credits), they receive a cash refund from the Mississippi Department of Revenue. The bill takes effect January 1, 2026, and requires taxpayers to submit their federal tax return as proof of eligibility.