House Bill 175

(COMMITTEE SUBSTITUTE)

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR TAXPAYERS THAT EMPLOY PERSONS WHO HAVE BEEN CONVICTED OF CERTAIN NONVIOLENT CRIMES; TO PROVIDE THE AMOUNT OF THE TAX CREDIT; TO LIMIT THE AMOUNT OF THE TAX CREDIT THAT MAY BE CLAIMED IN A TAXABLE YEAR; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) Subject to the provisions of this section, a taxpayer that employs a person who has been convicted of a felony offense for a nonviolent crime shall be allowed an annual credit against the taxes imposed under this chapter. The credit shall be for an annual amount of Two Thousand Five Hundred Dollars ($2,500.00) for four (4) years for each person so employed. However, the tax credit shall not exceed the amount of tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to the taxpayer under this chapter, except credit for tax payments made by or on behalf of the taxpayer. In order to be eligible to claim a tax credit for an employee, the taxpayer must employ the employee for at least ten (10) consecutive months during the year for which the credit is claimed and the employee must work an average of at least forty (40) hours per week for the taxpayer during that time. A taxpayer may not claim a credit for more than ten (10) employees in a taxable year. The maximum aggregate amount of tax credits that may be claimed by all taxpayers claiming a credit under this section in a taxable year shall not exceed One Million Five Hundred Thousand Dollars ($1,500,000.00). For the purposes of this section, the term "nonviolent crime" means and has the same definition as that term has in Section 47-7-3.

(2) The tax credits provided for in this section shall be in addition to any other credit authorized under law.

(3) Any taxpayer who is eligible for the credit authorized in this section before January 1, 2021, shall be eligible for the credit authorized in this section, notwithstanding the repeal of this section.

(4) This section shall be repealed from and after January 1, 2021.

SECTION 2. Section 1 of this act shall be codified as a new 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, 2018.