MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Finance

By: Senator(s) Hewes

AN ACT TO PROVIDE FOR A TAX CREDIT FOR BUSINESS TAXPAYERS IN THE AMOUNT OF 50% OF ANY CONTRIBUTION MADE TO ANY PROJECT DESIGNED TO CONSTRUCT OR REHABILITATE LOW-INCOME IN A BLIGHTED AREA THAT IS CONDUCTED BY CERTAIN ELIGIBLE SPONSORS; TO PROVIDE THAT THE MAXIMUM AMOUNT OF SUCH CREDIT; TO PROVIDE THAT SPONSORS AND PERSONS DESIRING TO UTILIZE SUCH CREDIT SHALL MAKE APPLICATION TO THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT; TO REQUIRE THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT TO MAKE CERTAIN ELIGIBILITY DETERMINATIONS REGARDING SUCH CREDIT; TO LIMIT THE MAXIMUM DOLLAR AMOUNT OF THE CREDIT THAT MAY BE GRANTED IN ANY ONE STATE FISCAL YEAR; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) As used in this section:

(a) "Blighted area" shall have the meaning ascribed to such term in Section 43-35-3;

(b) "Department" means the Department of Economic and Community Development;

(c) "Eligible sponsor" means:

(i) A community action program;

(ii) A community development corporation;

(iii) A local housing authority;

(iv) A local redevelopment authority;

(v) A historic preservation district agency or organization; or

(vi) Any other entity designated as an eligible sponsor by the Department of Economic and Community Development;

(d) "Project" means any project designed to construct or rehabilitate low-income housing.

(2) Subject to the provisions of this section, there shall be allowed for any taxpayer as a credit against the tax imposed by this chapter, an amount equal to fifty percent (50%) of any contribution made for use in a project in a blighted area that is conducted by an eligible sponsor; provided, however, that no taxpayer shall receive a tax credit in any one (1) taxable year of more than Two Hundred Thousand Dollars ($200,000.00) and the aggregate amount of the tax credit allowed for all approved programs shall not exceed Two Million Dollars ($2,000,000.00) in any state fiscal year.

(3) An eligible sponsor desiring contributions received by it from a taxpayer to be eligible for the credit authorized in this section shall submit a proposal to the department setting forth the sponsor, the project, the area in which the project is located and such other information as the department may require. The proposal shall also contain a resolution from the local government in which the project is located that states that the project is consistent with local plans and regulations.

(4) Any taxpayer desiring to claim the credit authorized in this section shall submit an application for tax credit to the department which shall include the name of the eligible sponsor and the type, value and purpose of the contribution and such other information as the department shall require. The eligible sponsor shall verify in writing the terms of the application and its willingness to receive the contribution. Such written verification shall accompany the application. A separate application shall be required for each project to which a taxpayer makes a contribution.

(5) The department shall examine all proposals and applications to determine whether they meet the requirements of this section. The department shall determine the amount of the contribution that is eligible as a credit; provided, however, that in no case shall the aggregate amount of the credits authorized by this section in any state fiscal year exceed Two Million Dollars ($2,000,000.00). The department shall cease granting the tax credit once the aggregate amount of credits granted in a state fiscal year reaches Two Million Dollars ($2,000,000.00). All determinations made by the department pursuant to this subsection shall be in writing and a copy of the determinations shall be transmitted to the State Tax Commission. The department shall periodically monitor all projects to ensure compliance with this section.

(6) Any amount of contribution made by a taxpayer that is applied toward the tax credit allowed in this section may not be used as a deduction by the taxpayer for state income tax purposes. Any amount of the tax credit authorized by this section that exceeds the amount of the taxes due the State of Mississippi in the year taken, may be carried forward for five (5) years.

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

SECTION 3. This act shall take effect and be in force from and after January 1, 2000.