2006 Regular Session
To: Ways and Means
By: Representative Staples
AN ACT TO PROVIDE AN INCOME TAX CREDIT FOR A SMALL BUSINESS THAT, IN PREPARATION FOR AN EMERGENCY OR DISASTER WHICH MAY INTERRUPT OR RESULT IN AN OUTAGE OF ELECTRICAL POWER SUPPLY TO SUCH BUSINESS, PURCHASES FOR USE IN THE OPERATION OF ITS BUSINESS ELECTRICAL GENERATING EQUIPMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) For any small business that, in preparation for an emergency or disaster which may interrupt or result in an outage of electrical power supply to such business, purchases electrical generating equipment for use in the operation of such business, a credit against the taxes imposed by this chapter shall be allowed in the amount provided in subsection (2) of this section. Such credit shall include the actual cost of the electrical generator, batteries, wiring and other equipment, supplies or accessories necessary to make the generator functional and fuel used to operate the generator during a power outage. Such credit shall not be allowed if the purchase of such equipment, supplies, accessories or fuel is made during the period of time declared as a disaster by the President of the United States or by the Governor of the State of Mississippi for the area in which the business is located. For the purposes of this section, the term "small business" means any commercial enterprise having an annual gross income of less than Five Hundred Thousand Dollars ($500,000.00).
(2) The income tax credit provided in this section shall be equal to the actual costs incurred by a small business during a taxable year for purchase of the items described under subsection (1) of this section not to exceed the lesser of Two Thousand Five Hundred Dollars ($2,500.00) or the amount of income tax imposed upon the small business for the taxable year reduced by the sum of all other credits allowable to such business under the state income tax laws, except credit for tax payments made by or on behalf of the business.
SECTION 2. Section 1 of this act shall be codified as a separate code section in Article 1, 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, 2006.