MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Public Health and Welfare

By: Representative Moody

AN ACT TO AMEND SECTION 27-7-22.1, MISSISSIPPI CODE OF 1972, TO EXTEND THE REPEALER ON THE INCOME TAX CREDIT FOR EMPLOYERS WHO HIRE PERSONS RECEIVING TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) BENEFITS; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 27-7-22.1, Mississippi Code of 1972, is amended as follows:

27-7-22.1. (1) For any employer who employs a person who was receiving Temporary Assistance for Needy Families (TANF) assistance at the time the employer hired such person, a credit against the taxes imposed pursuant to this chapter shall be allowed for the wages paid to such person in the following amounts:

(a) If such person is compensated at Four Dollars ($4.00) or more above the hourly rate of the federal minimum wage, the employer shall receive a credit in the amount of forty percent (40%) of the first Five Thousand Two Hundred Dollars ($5,200.00) in wages paid annually to such person.

(b) If such person is compensated at less than Four Dollars ($4.00) but more than Three Dollars ($3.00) above the hourly rate of the federal minimum wage, the employer shall receive a credit in the amount of twenty-five percent (25%) of the first Five Thousand Two Hundred Dollars ($5,200.00) in wages paid annually to such person.

(c) If such person is compensated at Three Dollars ($3.00) or less above the hourly rate of the federal minimum wage, the employer shall receive a credit in the amount of twenty percent (20%) of the first Five Thousand Two Hundred Dollars ($5,200.00) in wages paid annually to such person.

(2) No credit shall be claimed for wages paid to any person for more than thirty-six (36) months, regardless of the number of employers who employ such person.

(3) An employer shall not receive the credit provided for in this section if such employer dismisses an employee to create a position for a TANF recipient.

(4) The tax credit allowed by this section shall not exceed the amount of taxes due the State of Mississippi. Any amount allowable as a credit pursuant to this section that exceeds the employer's tax liability shall not be refundable or carried forward to any other taxable year.

(5) The tax credit authorized in this section shall apply only in cases in which the person whose wages are used to calculate the credit was hired after July 1, 1993.

(6) This section shall stand repealed from and after January 1, 2001.

SECTION 2. This act shall take effect and be in force from and after January 1, 1999.