MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Finance; Wildlife and Fisheries

By: Senator(s) Posey

AN ACT TO CREATE THE MISSISSIPPI FISH AND WILDLIFE INCENTIVES PROGRAM TO ENCOURAGE LANDOWNERS TO ENHANCE AND RESTORE WILDLIFE HABITATS BY GRANTING TAXPAYERS AN INCOME TAX CREDIT FOR CERTAIN COSTS THEY INCUR ON APPROVED WILDLIFE HABITAT ENHANCEMENT AND RESTORATION PROJECTS; TO PROVIDE THAT THE AMOUNT OF THE CREDIT THAT CAN BE USED BY A TAXPAYER IN A TAXABLE YEAR MAY NOT EXCEED THE AMOUNT OF INCOME TAXES DUE THE STATE FROM THE TAXPAYER; TO PROVIDE THAT EXCESS CREDITS MAY BE CARRIED FORWARD FOR THE SUCCEEDING NINE YEARS; TO PROVIDE THAT THE COMMISSION ON WILDLIFE, FISHERIES AND PARKS SHALL PROMULGATE RULES AND REGULATIONS TO GOVERN THE PROGRAM; TO PROVIDE THAT THE COMMISSION ON WILDLIFE, FISHERIES AND PARKS SHALL ESTABLISH A LIST OF APPROVED PROJECTS; TO CREATE THE MISSISSIPPI FISH AND WILDLIFE INCENTIVES COMMITTEE TO ASSIST THE COMMISSION ON WILDLIFE, FISHERIES AND PARKS REGARDING CERTAIN ASPECTS OF THIS PROGRAM; TO PRESCRIBE THE MANNER OF APPLYING FOR SUCH CREDIT; TO PROVIDE FOR THE DURATION OF PROJECTS ELIGIBLE FOR SUCH CREDIT; AND FOR RELATED PURPOSES.

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

SECTION 1. This act may be cited as the "Mississippi Fish and Wildlife Incentives Program."

SECTION 2. The Legislature finds that fish and wildlife resources and the habitats that support them have significant benefit to Mississippi's environment, economy and overall quality of life and that the majority of lands suitable for fish and wildlife habitat are held by private owners. The Legislature finds that the State of Mississippi should encourage private landowners to enhance and restore upland wildlife habitat, wetland wildlife habitat, threatened and endangered species habitat and fisheries habitat through cost effective approaches.

SECTION 3. As used in this act:

(a) "Application" means a written plan for the development and maintenance of a project that is eligible for a tax credit under this act.

(b) "Commission" means the Mississippi Commission on Wildlife, Fisheries and Parks.

(c) "Committee" means the Mississippi Fish and Wildlife Incentives Committee.

(d) "Project" means the habitat enhanced or restored by activities for which a tax credit may be claimed under this act.

(e) "Project cost" means the expenditure for a project, not including any expenditure for matching state or federal conservation cost-share programs.

SECTION 4. (1) For any taxpayer, a credit against the taxes imposed pursuant to this chapter shall be allowed in the amount of fifty percent (50%) of all expenditures on a project. The maximum amount of the credit that may be claimed in any one (1) taxable year shall be the lesser of:

(a) Five Thousand Dollars ($5,000.00); or

(b) The total amount of the credit allowed for the project divided by the agreed upon duration of the project.

(2) To obtain the tax credit authorized in this section, a taxpayer shall apply to the commission as provided for in this act and meet all other requirements of this act.

(3) The amount of the tax credit that may be used in a taxable year shall not exceed the amount of taxes due the State of Mississippi under this chapter. Any amount allowable as a credit pursuant to this section that exceeds the taxpayer's tax liability shall not be refundable but may be carried forward for the succeeding nine (9) years.

(4) The State Tax Commission may promulgate any rules and regulations it considers necessary to carry out the provisions of this section.

SECTION 5. (1) There is hereby created the Mississippi Fish and Wildlife Incentives Committee. The committee shall consist of the directors of the Mississippi Department of Wildlife, Fisheries and Parks, the Mississippi Forestry Commission, the Mississippi Museum of Natural Science and the Mississippi Agricultural and Forestry Experiment Station, or their designees, and not more than three (3) directors of not-for-profit conservation organizations with expertise in the four (4) areas of habitat development appointed by the commission. The commission may appoint not more than two (2) members from among the following federal agencies:

(a) The United States Department of Agriculture's Natural Resources Conservation Service;

(b) The United States Department of Agriculture's Farm Services Agency;

(c) The United States Department of Agriculture's Forest Service; and

(d) The United States Fish and Wildlife Service.

(2) The committee shall:

(a) Consult with the commission to develop rules and regulations governing the program created under this act;

(b) Consult with the commission to develop and prioritize a list of projects that qualify for the tax credit authorized under this act; and

(c) Review and comment upon applications for the tax credit authorized pursuant to this act that are received by the commission.

SECTION 6. (1) The commission shall develop, in consultation with the committee, rules and regulations to govern the program created under this act.

(2) The commission, in consultation with the committee, shall develop and prioritize a list of approved projects. In developing and prioritizing projects the commission shall attempt to achieve landowner and public purposes and emphasis shall be placed on low maintenance, self-sustaining projects. The projects shall consist of building structures for fish and wildlife purposes, establishment of habitat by mechanical or other means, and maintenance and management practices. Projects shall include, but not be limited to, the following:

(a) Upland Wildlife Habitat: planting field borders and filter strips to grass/legume mixtures; establishing openings; planting, fertilizing and seed bed preparation for food, cover and nesting; establishing native prairie and grassland; fencing for habitat protection; prescribed burning, strip disking and mowing; flushing bars; restoration of wildlife habitat and corridors; forest stand improvement to include site preparation, tree planting, direct seeding, firebreaks, release and site preparation for natural regeneration.

(b) Wetland Wildlife Habitat: installation of water control structures in agricultural fields, moist soil areas and forested wetlands to provide beneficial habitat for wetland wildlife; application of water on agricultural fields, moist soil areas and forested wetlands during drought conditions to benefit wetland wildlife; restoration of hydrology; restoration of wildlife habitat and corridors, fencing for habitat protection; forest stand improvement to include site preparation, tree planting, direct seeding, firebreaks, release and site preparation for natural regeneration; strip disking and mowing; establishing openings; planting, fertilizing and seed bed preparation for food, cover and nesting.

(c) Threatened and Endangered Species Habitat: removal of barriers for aquatic species; establishment, management, maintenance, enhancement and restoration of grassed waterways and riparian areas; fencing for habitat protection; stream bank stabilization; installation of instream deflectors; restoration of threatened and endangered species habitat and corridors; placement of fish screens; control or eradication of invasive exotic or competing animal and plant species; forest stand improvement to include site preparation, tree planting, direct seeding, firebreaks, release and site preparation for natural regeneration.

(d) Fisheries Habitat: removal of fish barriers; establishment, management, maintenance, enhancement and restoration of grassed waterways and riparian areas; stream bank stabilization; installation of low water weirs and instream deflectors; fencing for habitat protection; development and placement of fish structures and gravel spawning beds; augmentation of flows.

(e) Other activities approved by the commission, in consultation with the Mississippi Fish and Wildlife Incentives Committee.

(3) The commission shall establish a reasonable application fee in an amount not to exceed One Hundred Dollars ($100.00), for the processing of applications for the tax credit authorized by this act.

SECTION 7. (1) A taxpayer desiring to obtain the tax credit authorized under this act shall pay the application fee to the commission and submit an application for the tax credit to the commission. Upon receipt of the fee and the application the commission shall forward the application to the committee for comment and review. The commission shall review the comments of the committee and issue a certificate approving the tax credit if the project meets the requirements of this act and the rules and regulations promulgated thereunder. The certificate approving the tax credit shall be filed by the taxpayer with the first tax return he files after claiming the tax credit authorized under this act.

(2) Upon completion of the project, the commission shall issue to the taxpayer a certificate of completion. The taxpayer shall file the certificate of completion with the first tax return the taxpayer files after he receives the certificate of completion.

(3) A taxpayer claiming the tax credit authorized under this act shall not claim a tax credit that is authorized under any other provision of law for any costs related to the project.

SECTION 8. (1) The project and activities related to the project shall meet or exceed such standards as may be established by the commission.

(2) Project costs incurred by the taxpayer after the issuance of a certificate approving the tax credit may be claimed by the taxpayer subject to the limitations provided for in this act.

(3) Projects must be completed and properly functioning within two (2) years of the date that the certificate approving the tax credit is issued; provided, however, that if the commission determines that the failure to complete the project within the two-year time period is the result of conditions beyond the control of the taxpayer, the commission may grant the taxpayer an additional year to comply. If the project is not completed within the time allowed in this subsection, the taxpayer shall pay to the State Tax Commission an amount equal to the tax credits that the taxpayer received and the taxpayer shall not receive any additional tax credit for costs associated with the project.

(4) The duration of a project shall be for such period of time as may be agreed upon by the commission and the taxpayer; provided, however, that the duration of a project shall be not less than three (3) years nor more than ten (10) years. If the taxpayer terminates the project prior to the agreed upon duration of the project, the taxpayer shall provide written notification to the commission and the State Tax Commission.

(5) If the commission determines that the taxpayer has terminated the project, the commission shall notify the State Tax Commission.

(6) Upon termination of a project prior to the agreed upon duration of the project, the taxpayer shall not be allowed to claim any further tax credits authorized under this act for the cost of such project.

SECTION 9. (1) The tax credit authorized by this act shall apply to taxable years beginning on or after January 1, 1999.

(2) The State Tax Commission shall keep a record of the total amount of tax credits utilized under this act for each calendar year. When the total amount of tax credits utilized pursuant to this act exceeds One Million Dollars ($1,000,000.00) in any one (1) calendar year, no further tax credits shall be granted pursuant to this act after December 31 of the year following the year in which the tax credits utilized pursuant to this act exceeded One Million Dollars ($1,000,000.00); provided, however, that any taxpayer who has been issued a certificate approving a tax credit by the commission prior to such date shall be entitled to receive and utilize the tax credit authorized by this act.

SECTION 10. The provisions of this act shall be codified in Chapter 7 of Title 27, Mississippi Code of 1972.

SECTION 11. This act shall take effect and be in force from and after January 1, 1999.