1997 Regular Session
By: Senator(s) Smith
Senate Bill 3053
AN ACT TO PROVIDE A CREDIT AGAINST STATE INCOME TAXES FOR TAXPAYERS MAKING EXPENDITURES FOR THE NEW CONSTRUCTION OR THE ACQUISITION AND REHABILITATION OF CERTAIN QUALIFIED LOW INCOME HOUSING PROJECTS; TO LIMIT THE AMOUNT OF THE INCOME TAX CREDIT THAT MAY BE TAKEN BY A TAXPAYER; TO PROVIDE THAT THE MISSISSIPPI HOME CORPORATION SHALL DETERMINE THE AMOUNT OF CREDIT THAT MAY BE CLAIMED BY A TAXPAYER; TO PROVIDE FOR THE APPLICATION OF THE CREDIT AGAINST INCOME TAX LIABILITY IN CASES OF CORPORATIONS, INDIVIDUALS AND CERTAIN OTHER BUSINESS ENTITIES; TO AMEND SECTION 43-33-704, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1)(a) Any taxpayer making expenditures for the new construction or the acquisition and rehabilitation of qualified low-income housing projects in the State of Mississippi shall be allowed a credit in the amount authorized in subsection (2) of this section against corporate and personal income tax imposed upon the taxpayer under the laws of this state. The amount of the credit shall be determined in accordance with subsection (2) of this section and computed in the same manner as the federal low-income housing credit allowed under 26 USCS Section 42, as amended, and the treasury regulations promulgated thereunder. For the purposes of this section, "qualified low-income housing project" shall have the same meaning as that ascribed to the term in 26 USCS Section 42, as amended.
(b) The credit provided for in this section shall not exceed the state income tax liability imposed upon the taxpayer for the taxable year in which the expenditures are made or for which the credit is claimed.
(2)(a) The Mississippi Home Corporation shall authorize the amount of credit to be allocated to any project in accordance with the requirements of this section, based on the need of the project for the credit for economic feasibility.
(b) In order for a taxpayer to claim the credit provided for in this section, the qualified low-income housing project for which the credit is claimed must be located in the State of Mississippi and satisfy at least one (1) of the following requirements:
(i) The Mississippi Home Corporation allocates a credit to the project for federal income tax purposes under 26 USCS Section 42, as amended, and the Treasury Regulations promulgated thereunder; or
(ii) The project qualifies for a low-income housing credit under 26 USCS Section 42(h)(4), as amended, and the Treasury Regulations promulgated thereunder.
(c) The Mississippi Home Corporation shall certify to the taxpayer the amount of the credit allocated to a project for each year of the credit period. For the purposes of this paragraph, the term "credit period" shall have the same meaning as that ascribed to the term in 26 USCS Section 42(f)(1), as amended.
(d) The aggregate credit dollar amount which the Mississippi Home Corporation may allocate to a project for a calendar year shall be calculated in the same manner as the state housing credit ceiling applicable to the State of Mississippi for the applicable year under 26 USCS Section 42(h)(3)(A)(C), as amended, except that the portion of the formula contained in 26 USCS Section 42(h)(3)(A)(C)(i), as amended, shall be derived by multiplying Three Dollars ($3.00), rather than One Dollar and Twenty-five Cents ($1.25), by the state population.
(3) Notwithstanding any other provision of law to the contrary, the following rules shall govern the application of the credit provided for in this section:
(a) The credit for new construction or acquisition and rehabilitation expenditures made by a corporation shall be applied against the state income tax liability of the corporation.
(b) The credit for new construction or acquisition and rehabilitation expenditures made by an individual shall be applied against the state income tax liability of the individual.
(c) The credit for new construction or acquisition and rehabilitation expenditures made by a corporation for which a valid election as an S corporation under 26 USCS Section 1362(a), is in effect, shall be applied first against the corporate income tax liability of the corporation, and the remainder of the credit shall be allocated to the shareholder or shareholders of the corporation based on the proportion of their respective interests and applied against the state income tax liability of the shareholder or shareholders.
(d) The credit for new construction or acquisition and rehabilitation expenditures made by a partnership, partnership in commendam, registered limited liability partnership or limited liability company shall be allocated to the partners or members according to their distributive shares of the gross income of such business entity and applied against the state income tax liability of such partners or members.
(e) The credit authorized in this section shall be allowed only for new construction or acquisition and rehabilitation expenditures placed in service on or after January 1, 1996. For the purposes of this paragraph, the term "placed in service" shall have the same meaning as that used in 26 USCS Section 42, as amended, and the treasury regulations promulgated thereunder.
SECTION 2. Section 43-33-704, Mississippi Code of 1972, is amended as follows:
43-33-704. (1) There is created by this article the Mississippi Home Corporation, which shall be a continuation of the corporate existence of the Mississippi Housing Finance Corporation and (a) all property, rights and powers of the Mississippi Housing Finance Corporation are vested in, and shall be exercised by, the corporation, subject, however, to all pledges, covenants, agreements, undertakings and trusts made or created by the Mississippi Housing Finance Corporation; (b) all references to the Mississippi Housing Finance Corporation in any other law or regulation shall be deemed to refer to and apply to the corporation; and (c) all regulations of the Mississippi Housing Finance Corporation shall continue to be in effect as the regulations of the corporation until amended, supplemented or rescinded by the corporation in accordance with law.
(2) The corporation is created with power to: raise funds from private investors in order to make such private funds available to finance the acquisition, construction, rehabilitation and improvement of residential and rental housing for persons of low or moderate income within the state; provide financing to qualified sponsors or individuals for a wide range of loans including, but not limited to, housing development, mortgage, rehabilitation or energy conservation loans; make loans to private lenders to finance any of these loans; purchase any of these loans from private lenders; refinance, insure or guarantee any of these loans; provide for temporary or partial financing for any of these purposes; develop, operate and administer housing programs which further its stated goals of improving the availability, affordability and quality of low and moderate income housing in the state; and make grants or loans to private nonprofit developers, local governments or private persons in furtherance of these goals; and authorize and certify to taxpayers the amount of income tax credits allocated to qualified low-income housing projects under Section 1 of Senate Bill No. 3053, 1997 Regular Session.
(3) The corporation shall be composed of thirteen (13) members. The Governor, with the advice and consent of the Senate, shall appoint the members of the corporation, who shall be residents of the state and shall not hold other public office. There shall be at least one (1) member and not more than three (3) members appointed from each of the five (5) congressional districts in existence on January 1, 1989, and, in addition, (a) from and after September 1, 1980, (i) at least one (1) member shall have at least three (3) years' experience and background in the savings and loan association business, the commercial banking business or the mortgage banking business, (ii) at least one (1) member shall have at least three (3) years' experience and background in the residential housing construction industry, (iii) at least one (1) member shall have at least three (3) years' experience and background in the licensed residential housing brokerage business, and (iv) at least one (1) member shall be a member of the general public not engaged in any business, industry or activity described in clauses (i) through (iii) of this subparagraph; (b) from and after September 1, 1989, (i) at least one (1) member shall have at least three (3) years' experience and background in the manufactured housing business; (ii) at least one (1) member shall have at least three (3) years' experience and background in nonprofit housing development in a Metropolitan Statistical Area (MSA); (iii) at least one (1) member shall have at least three (3) years' experience and background in nonprofit housing development outside a MSA; and (iv) at least (1) member shall be a low or moderate income person qualified for assistance under this article.
(4) Appointments shall be for terms of four (4) years. Each member shall hold office until his successor has been appointed and qualified. Vacancies shall be filled by appointment of the Governor, subject to the advice and consent of the Senate, for the length of the unexpired term only. Any member of the corporation shall be eligible for reappointment. Any member of the corporation may be removed by the Governor for misfeasance, malfeasance or willful neglect of duty after reasonable notice and a public hearing, unless the same are expressly waived in writing. Each member of the corporation shall before entering upon his duty take an oath of office to administer the duties of his office faithfully and impartially, and a record of such oath shall be filed in the office of the Secretary of State. The corporation shall annually elect from its membership a chairman who shall be eligible for reelection. The corporation shall annually elect from its membership a vice chairman who shall be eligible for reelection. The corporation shall also elect or appoint, and prescribe the duties of, such other officers (who need not be members) as the corporation deems necessary or advisable, and the corporation shall fix the compensation of such officers. The corporation may delegate to one or more of its members, officers, employees or agents such powers and duties as it may deem proper, not inconsistent with this article or other provisions of law.
(5) The Executive Director of the Department of Economic Development, the Director of the Veterans' Home Purchase Board and the State Treasurer shall serve as ex officio members of the corporation.
(6) In accomplishing its purposes, the corporation is acting in all respects for the benefit of the people of the state and the performance of essential public functions and is serving a vital public purpose in approving and otherwise promoting their health, welfare and prosperity, and the enactment of the provisions hereinafter set forth is for a valid public purpose and is hereby so declared to be such as a matter of express legislative determination.
(7) It is the intention of the Legislature by the enactment of this Section 43-33-704 to effect a recodification of the substance of the provisions of Section 43-33-507 as such section existed prior to its repeal by Laws, 1991, Chapter 528; and the creation of this new Section 43-33-704 shall not be construed to require that members of the corporation serving on June 30, 1991, who were appointed and confirmed under Section 43-33-507, be reappointed and reconfirmed in order to continue to serve out the remainder of their terms.
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 July 1, 1997.