Senate Bill 3009

(COMMITTEE SUBSTITUTE)

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR EMPLOYERS WHO SPONSOR SKILLS TRAINING FOR EMPLOYEES; TO PROVIDE FOR THE AMOUNT OF THE TAX CREDIT; TO PROVIDE THAT THE TAX CREDIT WILL BE GRANTED TO EMPLOYERS THAT PARTICIPATE IN EMPLOYER-SPONSORED TRAINING PROGRAMS THROUGH ANY COMMUNITY COLLEGE OR JUNIOR COLLEGE IN THE DISTRICT WITHIN WHICH THE EMPLOYER IS LOCATED OR TRAINING APPROVED BY THE COMMUNITY COLLEGE OR JUNIOR COLLEGE; TO PROVIDE THAT A COMMUNITY COLLEGE OR JUNIOR COLLEGE MAY COMMIT TO PROVIDE EMPLOYER-SPONSORED SKILLS TRAINING PROGRAMS FOR AN EMPLOYER FOR A MULTIPLE NUMBER OF YEARS, NOT TO EXCEED FIVE YEARS; TO PROVIDE THAT THE MISSISSIPPI COMMUNITY COLLEGE BOARD SHALL MAKE A REPORT TO THE LEGISLATURE BY JANUARY 30 OF EACH YEAR SUMMARIZING THE NUMBER OF PARTICIPANTS, THE JUNIOR OR COMMUNITY COLLEGE THROUGH WHICH THE TRAINING WAS OFFERED, AND THE TYPE TRAINING OFFERED; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) As used in this section, the following words and phrases shall have the meanings ascribed herein unless the context clearly requires otherwise:

(a) "Skills training" means any employer-sponsored training by an appropriate community/junior college or training approved by such community/junior college that enhances skills that improve job performance. If the employer provides preemployment training, the portion of the preemployment training that involves skills training shall be eligible for the credit.

(b) "Employer-sponsored training" means training provided by the appropriate community/junior college in the district within which the employer is located or training approved by such community/junior college.

(2) A fifty percent (50%) income tax credit shall be granted to any employer sponsoring skills training. The fifty percent (50%) credit shall be granted to employers that participate in employer-sponsored training programs through any community/junior college in the district within which the employer is located or training approved by such community/junior college. The credit is applied to qualified training expenses, which are expenses related to instructors, instructional materials and equipment, and the construction and maintenance of facilities by such employer designated for training purposes which are attributable to training provided through such community/junior college or training approved by such community/junior college. The credit allowed under this section shall only be used by the actual employer qualifying for the credit. The credit shall not exceed fifty percent (50%) of the taxpayer's income tax liability in a tax year and may be carried forward for five (5) successive years if the amount allowable as a credit exceeds the income tax liability in a tax year; however, thereafter, if the amount allowable as a credit exceeds the tax liability, the amount of excess credit shall not be refundable or carried forward to any other taxable year. The credit authorized under this section shall not exceed Two Thousand Five Hundred Dollars ($2,500.00) per employee during any one (1) 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 Dollars ($1,000,000.00). Nothing in this section shall be interpreted in any manner as to prevent the continuing operation of state-supported university programs.

(3) Employer-sponsored training shall include an evaluation by the local community or junior college that serves the employer to ensure that the training provided is job related and conforms to the definition of "skills training" in subsection (1)(a) of this section.

(4) Employers shall be certified as eligible for the tax credit by the local community or junior college that serves the employer and the department.

(5) The tax credits provided for in this section shall be in addition to all other tax credits heretofore granted by the laws of the state.

(6) A community/junior college may commit to provide employer-sponsored skills training programs for an employer for a multiple number of years, not to exceed five (5) years.

(7) The Mississippi Community College Board shall make a report to the Legislature by January 30 of each year summarizing the number of participants, the junior or community college through which the training was offered, and the type of training offered.

(8) This section shall stand repealed from and after December 31, 2027.

SECTION 2. Section 1 of this act shall be codified as a new section in Title 27, Chapter 7, Mississippi Code of 1972.

SECTION 3. This act shall take effect and be in force from and after January 1, 2024.