MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Ways and Means

By: Representative Williams

AN ACT TO AUTHORIZE MEMBERS OF CERTAIN LIMITED LIABILITY COMPANIES TO TRANSFER ANY INCOME TAX CREDIT TO WHICH A MEMBER MAY BE ENTITLED TO ANOTHER TAXPAYER IF THE LIMITED LIABILITY COMPANY MEMBER HAS NO STATE INCOME TAX LIABILITY AGAINST WHICH TO APPLY SUCH INCOME TAX CREDIT; TO PROVIDE CERTAIN REQUIREMENTS THAT MUST BE SATISFIED IN ORDER FOR A LIMITED LIABILITY COMPANY MEMBER TO TRANSFER A TAX CREDIT AS AUTHORIZED BY IN THIS ACT; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) Subject to the provisions of subsection (2) of this section, a limited liability company member entitled to any credit against the taxes imposed pursuant to this chapter and authorized pursuant to Sections 27-7-22 through 27-7-22.13, Sections 57-73-21, 57-73-23 and 57-73-25 and any other similar credit, may transfer any such credit to any other taxpayer if the limited liability company member has no income tax liability against which to apply the credit. The transfer of a tax credit under this subsection (1) may be for any consideration agreed upon by the limited liability company member and the taxpayer to which the credit is transferred.

(2) In order to be eligible to transfer a credit under this section, a limited liability company member must be a member of a limited liability company that (a) forms in the State of Mississippi or moves all or part of its operations to the state after the effective date of House Bill No. , 1998 Regular Session, and (b) makes an initial capital investment in the state, from any source, of not less than Ten Million Dollars ($10,000,000.00).

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. This act shall take effect and be in force from and after January 1, 1998.