House Bill 740

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR TAXPAYERS THAT EMPLOY PERSONS WHO ARE HONORABLY DISCHARGED VETERANS WHO SERVED ON ACTIVE DUTY IN THE ARMED FORCES OF THE UNITED STATES ON OR AFTER SEPTEMBER 11, 2001, AND WHO HAVE BEEN UNEMPLOYED FOR SIX CONSECUTIVE MONTHS IMMEDIATELY PRIOR TO BEING EMPLOYED BY SUCH TAXPAYERS; TO PROVIDE THE AMOUNT OF THE TAX CREDIT; TO LIMIT THE AMOUNT OF THE TAX CREDIT THAT MAY BE CLAIMED IN A TAXABLE YEAR; TO AUTHORIZE ANY TAX CREDIT CLAIMED BUT NOT USED IN ANY TAXABLE YEAR TO BE CARRIED FORWARD FOR FIVE CONSECUTIVE YEARS; TO PROVIDE THAT THE AGGREGATE AMOUNT OF TAX CREDITS THAT MAY BE AWARDED UNDER THIS ACT SHALL NOT EXCEED $1,000,000.00; 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 is a new hire employed after January 1, 2020, who is an honorably discharged veteran, as defined in Title 38 of the United States Code, who served on active duty in the Armed Forces of the United States on or after September 11, 2001, and who has been unemployed for six (6) consecutive months immediately prior to being employed by the taxpayer, shall be allowed an annual credit against the taxes imposed under this chapter. The credit shall be for an annual amount equal to ten percent (10%) of the annual wages (as defined in Section 27-7-303) paid to each person so employed or Two Thousand Dollars ($2,000.00), whichever is the lesser, for each person so employed, for five (5) years. The credit may be claimed by the taxpayer once for each person hired. The tax credit may not be claimed for hiring a person whose employment was previously utilized to claim the tax credit. 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. Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) consecutive years from the close of the tax year in which the credits were earned. In order to be eligible to claim a tax credit for an employee, the taxpayer must employ the employee for at least six (6) consecutive months during the year for which the credit is claimed and the employee must work an average of at least thirty (30) hours per week for the taxpayer during that time.

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

(3) The aggregate amount of tax credits that may be awarded under this section shall not exceed One Million Dollars ($1,000,000.00).

(4) Any taxpayer who is eligible for the credit authorized in this section before January 1, 2023, shall be eligible for the credit authorized in this section, notwithstanding the repeal of this section, and shall be allowed to carry forward the credit after January 1, 2023, as provided for in subsection (1) of this section.

(5) This section shall be repealed from and after January 1, 2023.

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, 2020.