MISSISSIPPI LEGISLATURE
1998 Regular Session
To: Ways and Means
By: Representatives Clarke, Straughter, Thomas
House Bill 1819
AN ACT TO PROVIDE AN INCOME TAX CREDIT FOR EMPLOYERS WHO ALLOW THEIR EMPLOYEES TO TAKE PAID LEAVE IN ORDER TO PERFORM VOLUNTEER WORK; TO LIMIT THE AMOUNT OF SUCH TAX CREDIT; TO PROVIDE THAT AN EMPLOYER MUST PROVIDE THE STATE TAX COMMISSION WITH CERTAIN INFORMATION IN ORDER TO RECEIVE THAT TAX CREDIT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) Subject to the provisions of subsection (3) of this section, any employer that allows its employees to take paid leave during work hours in order to perform volunteer service, shall be allowed a credit against the taxes imposed pursuant to this chapter upon the employer for the tax year in which the volunteer service was performed. For purposes of this section "volunteer service" means service performed without compensation for any agency, board or body of the State of Mississippi, or any political subdivision thereof, or any nonprofit corporation or association whose purpose is to provide services or assistance to the elderly, handicapped or disabled persons or persons in need of food, clothing or shelter, and any school, school district or educational institution in the State of Mississippi.
(2) Subject to the provisions of subsection (3) of this section, the amount of the credit provided under this section shall be equal to the average hourly compensation actually paid to the employee for each hour that the employee performed volunteer service, not to exceed forty (40) hours during any one (1) taxable year.
(3) The income tax credit provided in this section shall not exceed fifty percent (50%) of the income tax imposed upon the employer for the taxable year reduced by the sum of all other credits allowable to such employer under the state income tax laws, except credit for tax payments made by or on behalf of the taxpayer. The credit authorized in this section may be carried forward for the next four (4) successive tax years if the amount allowed as credit exceeds the employer's income tax liability for the taxable year. However, thereafter, if the amount allowable as credit exceeds the employer's income tax liability for the taxable year, the amount of excess credit shall not be refundable or carried forward to any other taxable year.
(4) If an employer desires to qualify for the income tax credit provided in this section, the employer must provide the State Tax Commission with documentation verifying the name of the employee who performed volunteer service, the average hourly compensation actually paid to the employee for each hour that the employee performed volunteer service, the number of hours that the employee performed volunteer service, and documentation signed by the chief administrative official of the entity for which the employee performed volunteer service.
SECTION 2. Section 1 of this act shall be codified as a separate section in Chapter 7, Title 27, Mississippi Code of 1972.
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.