MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Finance

By: Senator(s) Harvey, Smith, Browning, Thames, Tollison, Dearing, Farris, Gollott, Bean, Jordan (18th), Kirby, Jordan (24th), Ross, Nunnelee, Johnson (19th), Simmons, Posey, Scoper, Moffatt, Hewes, Dickerson, Horhn, Harden, Jackson, Robertson, Little, Frazier, Walls, Woodfield, Carter, Canon, Cuevas, Mettetal, Lee, Furniss, White (29th), White (5th), Burton, Huggins, Turner, Stogner

AN ACT TO PROVIDE AN INCENTIVE FOR PRIVATE LANDOWNERS TO REFOREST IDLE NON-INDUSTRIAL PRIVATE LANDS; TO PROVIDE A TAX CREDIT FOR CERTAIN APPROVED REFORESTATION PRACTICES; AND FOR RELATED PURPOSES. 

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

SECTION 1. (1) For the purposes of this section the following words shall have the meaning defined herein:

(a) "Approved reforestation practices" means the following practices for establishing a crop of trees suitable for manufacturing into forest products:

(i) "Pine and hardwood tree planting practices" including the cost of seedlings, planting by hand or machine, and site preparation.

(ii) "Mixed-stand regeneration practices" to establish a mixed-crop of pine and hardwood trees by planting or direct seeding including the cost of seedlings, seeds, acorns, planting, seeding and site preparation.

(iii) "Direct seeding practices" to establish a crop of pine or hardwood trees by directly applying seeds or acorns to the site including the cost of seeds, acorns, seeding and site preparation.

(iv) "Post-planting site preparation practices" to reduce or control undesirable competition within the first growing season of an established crop of trees.

Approved reforestation practices shall not include the establishment of orchards, Christmas trees or ornamental trees.

(b) "Eligible tree species" means pine and hardwood commercial tree species suitable for manufacturing into forest products.

(c) "Cost-share assistance" means partial financial payment for approved reforestation practices from the state as authorized under Section 49-19-201 et seq., or the federal government

(d) "Eligible owner" means a private individual, group or association, but the term does not mean or include private corporations manufacturing products or providing public utility services of any type or any subsidiary of such corporations.

(e) "Eligible lands" means non-industrial private lands owned by a private individual, group or association, but does not include lands owned by private corporations which manufacture products or provide public utility services of any type or any subsidiary of such corporations.

(2) Any eligible owner shall be allowed a tax credit against state income taxes for the costs of approved reforestation practices as provided in this section.

(3) The amount of the credit allowed for the costs of approved reforestation practices for the taxable year shall not exceed the lesser of:

(a) Fifty percent (50%) of the actual costs of the approved reforestation practices; or

(b) Fifty percent (50%) of the average cost of approved practices as established by the Mississippi Forestry Commission under Section 49-19-219, Mississippi Code of 1972.

(3) The maximum annual credit that may be claimed is limited to Ten Thousand Dollars ($10,000.00). Any unused portion of the tax credit may be carried forward for succeeding taxable years.

(4) If an eligible owner receives any state or federal cost share assistance funds to defray the cost of an approved reforestation practice, the cost of that practice on the same acre or acres within the same tax year is not eligible for the tax credit unless the eligible owner's adjusted gross income is less than the federal earned income credit level.

SECTION 2. 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 the claims, assessments, appeals, suits or actions have been begun before or after the date on which this act becomes effective. 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 the 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 the laws.

SECTION 3. This act shall take effect and be in force from and after July 1, 1998.