Mississippi employers can claim tax credits for job training

The law allows eligible employers to claim an income tax credit for some employee training costs. The credit is for permanent businesses sponsoring skills training for employees. Eligible training improves job performance and may include the skills-training part of preemployment training. The credit covers 50% of qualifying costs, up to $2,500 per employee each year, and cannot exceed half of the employer’s income tax liability for that year. Training must be offered or approved by the community or junior college serving the employer’s district. The college must evaluate it as job related, and the college and state department must certify the employer. Unused credit may carry forward for five successive years. Any amount left after that cannot be refunded or carried forward. The law took effect January 1, 2026. The section is scheduled to be repealed after December 31, 2030.

The law caps all taxpayers’ claims under this section at $2.5 million in a taxable year. The cap covers every taxpayer claiming this training credit in a taxable year. The ceiling applies to all taxpayers claiming credits under this section in that taxable year.