2005 Regular Session
To: Ways and Means
By: Representative Watson, Brown, Peranich, Reeves
AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR TAXPAYERS WHO INCUR COSTS AND EXPENSES FOR THE REHABILITATION OF ELIGIBLE PROPERTY WHICH IS A CERTIFIED HISTORIC STRUCTURE OR A STRUCTURE IN A CERTIFIED HISTORIC DISTRICT IN AN AMOUNT EQUAL TO 25% OF THE TOTAL COSTS AND EXPENSES OF REHABILITATION INCURRED, IF THE COSTS AND EXPENSES ASSOCIATED WITH REHABILITATION EXCEED 50% OF THE TOTAL BASIS IN THE PROPERTY AND THE REHABILITATION IS CONSISTENT WITH THE STANDARDS OF THE SECRETARY OF THE UNITED STATES DEPARTMENT OF THE INTERIOR AS DETERMINED BY THE MISSISSIPPI DEPARTMENT OF ARCHIVES AND HISTORY; TO PROVIDE THAT IF THE AMOUNT OF THE TAX CREDIT EXCEEDS THE TOTAL STATE INCOME TAX LIABILITY FOR THE YEAR IN WHICH THE REHABILITATED PROPERTY IS PLACED IN SERVICE, THE AMOUNT THAT EXCEEDS THE TOTAL STATE INCOME TAX LIABILITY MAY BE CARRIED BACK TO EACH OF THE THREE TAX YEARS PRECEDING THE TAX YEAR IN WHICH THE ORIGINAL CREDIT IS CLAIMED AND CARRIED FORWARD FOR THE TEN SUCCEEDING TAX YEARS; TO PROVIDE THE MANNER IN WHICH SUCH CREDIT MAY BE CLAIMED; TO PROVIDE FOR THE MISSISSIPPI DEVELOPMENT AUTHORITY TO DETERMINE THE AMOUNT OF THE ELIGIBLE TAX CREDIT, CONSISTENT WITH THE STANDARDS OF THE SECRETARY OF THE UNITED STATES DEPARTMENT OF THE INTERIOR; TO REQUIRE THAT THE EXPENDITURES HAVE A POSITIVE ECONOMIC, FISCAL OR TAX IMPACT ON THE STATE OR LOCAL GOVERNMENTS; TO PROVIDE FOR A DECEMBER 31, 2010, REPEAL DATE ON THE INCOME TAX CREDIT AUTHORIZED UNDER THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) As used in this section:
(a) "Certified historic structure" means a property located in Mississippi and listed individually on the National Register of Historic Places.
(b) "Eligible property" means property located in Mississippi and offered or used for residential or business purposes.
(c) "Structure in a certified historic district" means a structure (and its structural components) located in Mississippi which (i) is listed in the National Register of Historic Places or (ii) is located in a registered historic district and is certified by the Secretary of the United States Department of the Interior as being of historic significance to the district; or a structure (and its structural components) certified by the Mississippi Department of Archives and History as contributing to the historic significance of a certified historic district listed on the National Register of Historic Places or a local district that has been certified by the United States Department of the Interior.
(2) Any taxpayer incurring costs and expenses for the rehabilitation of eligible property, which is a certified historic structure or a structure in a certified historic district, shall be entitled to a credit against the taxes imposed pursuant to this chapter in an amount equal to twenty-five percent (25%) of the total costs and expenses of rehabilitation incurred after January 1, 2005, which shall include, but not be limited to, qualified rehabilitation expenditures as defined under Section 47(c)(2)(A) of the Internal Revenue Code of 1986, as amended, and the related regulations thereunder, if the costs and expenses associated with rehabilitation exceed fifty percent (50%) of the total basis in the property and the rehabilitation is consistent with the standards of the Secretary of the United States Department of the Interior as determined by the Department of Archives and History. The Board of Trustees of the Department of Archives and History is authorized to charge a reasonable nonrefundable fee for administration of this act, said fee not to exceed the actual cost of providing such services. Any taxpayer desiring to participate in the tax credits authorized by this section shall pay this fee to the Department of Archives and History, which shall be used without appropriation from the Legislature, by the department to offset said administrative costs.
(3) (a) If the amount of the tax credit established by this section exceeds the total state income tax liability for the year in which the rehabilitated property is placed in service, the amount that exceeds the total state income tax liability may be carried back to each of the three (3) tax years preceding the tax year in which the original credit is claimed and carried forward for the ten (10) succeeding tax years.
(b) Not-for-profit entities, including, but not limited to, nonprofit corporations organized under Section 79-11-101 et seq. shall be ineligible for the credit authorized by this section. Credits granted to a partnership, a limited liability company taxed as a partnership or multiple owners of property shall be passed through to the partners, members or owners on a pro rata basis or pursuant to an executed agreement among the partners, members or owners documenting an alternative distribution method.
(4) To claim the credit authorized pursuant to this section, the taxpayer shall apply to the Mississippi Development Authority which shall determine the amount of eligible rehabilitation costs and expenses and whether the rehabilitation is consistent with the standards of the Secretary of the United States Department of the Interior. If the Mississippi Development Authority makes a determination that the expenditure of eligible rehabilitation costs has a positive economic, fiscal or tax impact, either direct or indirect, on the state or on local governments, the Mississippi Development Authority shall issue a certificate evidencing the eligible credit if the taxpayer is found to be eligible for the tax credit. The taxpayer shall attach the certificate to all income tax returns on which the credit is claimed.
(5) This section shall stand repealed on December 31, 2010.
SECTION 2. This act shall take effect and be in force from and after January 1, 2005.