Senate Bill 2993

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR TAXPAYERS WHO INCUR COSTS AND EXPENSES FOR THE REHABILITATION OF CERTAIN ELIGIBLE HISTORIC PROPERTY 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 THAT THE MISSISSIPPI DEVELOPMENT AUTHORITY 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; TO PROVIDE THAT 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, THE MISSISSIPPI DEVELOPMENT AUTHORITY SHALL ISSUE A CERTIFICATE EVIDENCING THE ELIGIBLE CREDIT IF THE TAXPAYER IS FOUND TO BE ELIGIBLE FOR THE TAX CREDIT; 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 is:

(i) Listed on the National Register of Historic Places;

(ii) Located in a registered historic district and certified by the United States Secretary of Interior as being of historic significance to the district and is certified by the Secretary of the United States Department of the Interior as being of historic significance to the district; or

(iii) 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 Mississippi 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 section; however, the fee shall not exceed the actual cost of providing these services. Taxpayers desiring to utilize the tax credit authorized by this section shall pay the fee to the Department of Archives and History and any fees so paid may be used by the department without appropriation from the Legislature to offset its administrative costs associated with this section.

(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) Credit 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 that documents 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, 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 be repealed from and after January 1, 2012.

SECTION 2. The provisions of Section 1 of this act shall be codified 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, 2006.