House Bill 1638

AN ACT TO AUTHORIZE A STATE INCOME TAX CREDIT FOR TAXPAYERS THAT ARE GROCERS AND RESTAURANTS FOR A PERCENTAGE OF THE COST OF FOOD THAT IS PURCHASED BY THE TAXPAYER IN THE COURSE OF THE TAXPAYER'S BUSINESS, NOT SOLD BY THE TAXPAYER AND DONATED BY THE TAXPAYER TO ENTITIES IN THIS STATE SUCH AS HOMELESS SHELTERS, FOSTER CARE SHELTERS, DOMESTIC VIOLENCE SHELTERS, AND CHARITABLE ORGANIZATIONS THAT OPERATE FOOD BANKS, FOOD PANTRIES OR FOOD LINES; AND FOR RELATED PURPOSES.

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

SECTION 1. A credit is allowed against the tax imposed by this chapter to a taxpayer that is a grocer or restaurant located in this state in the amount of twenty percent (20%) of the cost of food that is (a) purchased by the taxpayer in the course of the taxpayer's business, (b) not sold by the taxpayer and (c) donated by the taxpayer, regardless of whether in prepared or unprepared form, to an entity in this state such as a homeless shelter, foster care shelter, domestic violence shelter, and/or charitable organization in this state that is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code and operates a food bank or food pantry or food lines. 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 a taxable year may be carried forward for five (5) years from the close of the taxable year in which the credit was earned.

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. 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, 2023.