MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Universities and Colleges; Finance

By: Senator(s) Burton

AN ACT TO AMEND SECTION 57-73-25, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE TAX CREDIT FOR EMPLOYERS PROVIDING BASIC SKILLS TRAINING OR RETRAINING PROGRAMS SHALL BE CERTIFIED BY THE STATE BOARD FOR COMMUNITY AND JUNIOR COLLEGES; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 57-73-25, Mississippi Code of 1972, is amended as follows:

57-73-25. (1) A twenty-five percent (25%) income tax credit shall be granted to any employer (as defined in subsection (4) of this section) sponsoring basic skills training. The twenty-five percent (25%) credit shall be granted to employers that participate in employer-sponsored retraining programs through a community/junior college in the district within which the employer is located. The retraining must be designed to increase opportunities for employee advancement with the employer. The credit is applied to qualified training expenses, which are expenses related to instructors, instructional materials and equipment, and the construction and maintenance of facilities by such community/junior college designated for training purposes. The credits allowed under this section shall only be used by the actual employer qualifying for the credits. The credit shall not exceed fifty percent (50%) of the income tax liability in a tax year and may be carried forward for the five (5) successive years if the amount allowable as credit exceeds the income tax liability in a tax year; however, thereafter, if the amount allowable as a credit exceeds the tax liability, the amount of excess shall not be refundable or carried forward to any other taxable year. Nothing in this section shall be interpreted in any manner as to prevent the continuing operation of state-supported university programs.

(2) Employer-sponsored training shall include an evaluation by the State Board for Community and Junior Colleges to ensure that the training provided is job related and conforms to the definitions of "basic skills training" and "retraining programs" as hereinafter defined.

(3) Employers shall be certified as eligible for the tax credit by the State Board for Community and Junior Colleges and the State Tax Commission.

(4) For the purposes of this section:

(a) "Basic skills training" means any employer-sponsored training by the appropriate community/junior college that enhances reading, writing or math skills, up to the twelfth grade level, of employees who are unable to function effectively on the job due to deficiencies in these areas or who would be displaced because such skill deficiencies will inhibit their training for new technology.

(b) "Retraining programs" means employer-sponsored training by the appropriate community/junior college for hourly paid employees of manufacturing companies that, upon successful completion, certifies the employee as qualified to be considered for a promotional opportunity with the employer.

(c) "Employer-sponsored training" means training purchased by the company from the appropriate community/junior college in the district within which the employer is located.

(d) "Employer" means manufacturers, warehousers, distributors, processors or refiners, or telecommunications enterprises meeting certain minimum criteria established by the Department of Economic and Community Development.

(5) The tax credits provided for in this section shall be in addition to all other tax credits heretofore granted by the laws of the state.

(6) The Board of Community/Junior Colleges shall make a report to the Legislature by January 30 of each year summarizing the number of participants, the junior or community college through which said training was offered and the type training offered.

(7) As used in this section, the term "telecommunications enterprises" means entities engaged in the creation, display, management, storage, processing, transmission or distribution for compensation of images, text, voice, video or data by wire or by wireless means, or entities engaged in the construction, design, development, manufacture, maintenance or distribution for compensation of devices, products, software or structures used in the above activities. Companies organized to do business as commercial broadcast radio stations, television stations or news organizations primarily serving in-state markets shall not be included within the definition of the term "telecommunications enterprises."

SECTION 2. This act shall take effect and be in force from and after July 1, 2000.