1997 Regular Session
To: Ways and Means
By: Representatives Chaney, Barnett (116th), Bourdeaux, Bozeman, Brown, Cameron, Clark, Clarke, Coleman (65th), Davis (7th), Eaton, Evans, Formby, Fredericks, Gadd, Green (72nd), Holden, Janus, Johnson, Ketchings, King, Miller, Montgomery, Morris, Robinson (63rd), Rotenberry, Saucier, Scott (80th), Simmons (37th), Simmons (100th), Thornton, Wallace, Watson, Wells-Smith
House Bill 1744
AN ACT TO PROVIDE AN INCOME TAX CREDIT FOR EMPLOYERS THAT PROVIDE TRANSPORTATION SERVICES TO EMPLOYEES TO ASSIST EMPLOYEES IN GOING TO AND FROM WORK, OR TRANSPORTATION SERVICES TO EMPLOYEES TO ASSIST EMPLOYEES IN TAKING A CHILD OR CHILDREN TO A CHILD CARE FACILITY; TO LIMIT THE AMOUNT OF SUCH INCOME TAX CREDIT; TO PROVIDE THAT THE EXECUTIVE DIRECTOR OF THE MISSISSIPPI DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT SHALL DETERMINE WHETHER OR NOT AN EMPLOYER PROVIDED TRANSPORTATION SERVICE QUALIFIES FOR THE INCOME TAX CREDIT AUTHORIZED BY THIS ACT; TO PROVIDE THAT AN EMPLOYER MUST PROVIDE CERTAIN INFORMATION TO THE STATE TAX COMMISSION TO RECEIVE THE TAX CREDIT AUTHORIZED BY THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. As used in this act, the following words and phrases shall have the meanings ascribed in this section unless the context clearly requires otherwise:
(a) "Executive Director" means the executive director of the Mississippi Department of Economic and Community Development.
(b) "Transportation service" means any transportation service provided by an employer to its employees to assist employees in going to and from work, or transportation services provided by an employer to its employees to assist employees in taking a child or children to a child care facility.
SECTION 2. (1) For any employer that provides transportation services to its employees to assist employees in going to and from work, or transportation services to its employees to assist employees in taking a child or children to a child care facility, there shall be allowed a credit against income taxes in the amount provided in subsection (2) of this section. No credit shall be allowed for any expenses which serve as the basis for any other income tax credit. The income tax credit allowed under this act shall not be used by any business enterprise or corporation other than the business enterprise or corporation actually qualifying for the credit. In order to qualify for the income tax credit provided in this act, an employer must satisfy the requirements of subsection (4) of this section.
(2) The income tax credit provided in this act shall be twenty-five percent (25%) of the cost incurred by the employer in providing the transportation service.
(3) The Mississippi Department of Economic and Community Development shall promulgate rules and regulations regarding the types of transportation service that qualify as an eligible transportation service for the purposes of the income tax credit provided in this act.
(4) If an employer has a transportation service or plans to implement such service and the employer desires to qualify for the income tax credit provided in this act, the employer shall submit a description and full information on the transportation service or plan for such service, and the financing proposed for it, including detailed information relating to its funding by the employer, to the executive director. The executive director shall review the transportation service or plan to implement such service and determine whether or not it qualifies for the income tax credit provided in this act. If the executive director determines that the proposed transportation service or plan for such service meets the necessary criteria, he shall issue a certificate to that effect to the employer. The certificate will authorize the employer to claim a credit against income taxes for the amount contributed to financing of the transportation service as provided in subsections (2) and (5) of this section.
(5) The credit authorized in this section may be carried forward for the five (5) successive taxable years if the amount allowed as credit exceeds the employer's income tax liability for a taxable year. However, thereafter, if the amount allowable as a credit exceeds the employer's tax liability for a taxable year, the amount of excess credit shall not be refundable or carried forward to any other taxable year.
(6) To obtain the credit provided for in this act, the employer must provide to the State Tax Commission proof of the funds paid for the transportation service, a copy of the certificate for the transportation service issued by the executive director and any other information required by the State Tax Commission.
SECTION 3. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.
SECTION 4. This act shall take effect and be in force from and after January 1, 1998.