MISSISSIPPI LEGISLATURE
2004 Regular Session
To: Finance
By: Senator(s) Dawkins, Williamson, Dearing, Jackson (11th), Thomas, Gollott, Butler, Horhn, Morgan, Carmichael, Chamberlin, Jordan, Lee (47th), Chaney, Harden
AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR TAXPAYERS WHO INCUR COSTS AND EXPENSES FOR THE REHABILITATION OF ELIGIBLE PROPERTY WHICH IS A CERTIFIED HISTORIC STRUCTURE OR A STRUCTURE IN A CERTIFIED HISTORIC DISTRICT IN AN AMOUNT EQUAL TO 25% OF THE TOTAL COSTS AND EXPENSES OF REHABILITATION INCURRED, IF THE COSTS AND EXPENSES ASSOCIATED WITH REHABILITATION EXCEED 50% OF THE TOTAL BASIS IN THE PROPERTY AND THE REHABILITATION IS CONSISTENT WITH THE STANDARDS OF THE SECRETARY OF THE UNITED STATES DEPARTMENT OF THE INTERIOR AS DETERMINED BY THE MISSISSIPPI DEPARTMENT OF ARCHIVES AND HISTORY; TO PROVIDE THAT IF THE AMOUNT OF THE TAX CREDIT EXCEEDS THE TOTAL STATE INCOME TAX LIABILITY FOR THE YEAR IN WHICH THE REHABILITATED PROPERTY IS PLACED IN SERVICE, THE AMOUNT THAT EXCEEDS THE TOTAL STATE INCOME TAX LIABILITY MAY BE CARRIED BACK TO EACH OF THE THREE TAX YEARS PRECEDING THE TAX YEAR IN WHICH THE ORIGINAL CREDIT IS CLAIMED AND CARRIED FORWARD FOR THE TEN SUCCEEDING TAX YEARS; TO ALLOW THE TAXPAYER TO TRANSFER, SELL OR ASSIGN SUCH CREDITS; TO PROVIDE THE MANNER IN WHICH SUCH CREDIT MAY BE CLAIMED; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) As used in this section:
(a) "Certified historic structure" means a property located in Mississippi and listed individually on the National Register of Historic Places.
(b) "Eligible property" means property located in Mississippi and offered or used for residential or business purposes.
(c) "Structure in a certified historic district" means a structure located in Mississippi which is certified by the Mississippi Department of Archives and History as contributing to the historic significance of a certified historic district listed on the National Register of Historic Places or a local district that has been certified by the United States Department of the Interior.
(2) Any taxpayer incurring costs and expenses for the rehabilitation of eligible property, which is a certified historic structure or a structure in a certified historic district, shall be entitled to a credit against the taxes imposed pursuant to this section in an amount equal to twenty-five percent (25%) of the total costs and expenses of rehabilitation incurred after January 1, 2005, which shall include, but not be limited to, qualified rehabilitation expenditures as defined under Section 47(c)(2)(A) of the Internal Revenue Code of 1986, as amended, and the related regulations thereunder, if the costs and expenses associated with rehabilitation exceed fifty percent (50%) of the total basis in the property and the rehabilitation is consistent with the standards of the Secretary of the United States Department of the Interior as determined by the Mississippi Department of Archives and History.
(3) (a) If the amount of the tax credit established by this section exceeds the total state income tax liability for the year in which the rehabilitated property is placed in service, the amount that exceeds the total state income tax liability may be carried back to each of the three (3) tax years preceding the tax year in which the original credit is claimed and carried forward for the ten (10) succeeding tax years.
(b) Not-for-profit entities, including, but not limited to, nonprofit corporations organized under Section 79-11-101 et seq. shall be ineligible for the credit authorized by this section. Eligible taxpayers may transfer, sell or assign the credits. Credits granted to a partnership, a limited liability company taxed as a partnership or multiple owners of property shall be passed through to the partners, members or owners on a pro rata basis or pursuant to an executed agreement among the partners, members or owners documenting an alternative distribution method.
(c) The transferee, buyer or assignee of a tax credit may use acquired credits to offset up to one hundred percent (100%) of the taxes imposed pursuant to this section. In order to transfer, sell or assign the credit authorized by this section, the transferor, seller or assignor shall notify the Mississippi Development Authority in writing within thirty (30) calendar days following the effective date of the transfer, sale or assignment, and shall provide any information as may be required by the Mississippi Development Authority to carry out the provisions of this subsection.
(4) To claim the credit authorized pursuant to this section, the taxpayer shall apply to the Mississippi Development Authority which, in consultation with the Mississippi Department of Archives and History, shall determine the amount of eligible rehabilitation costs and expenses and whether the rehabilitation is consistent with the standards of the Secretary of the United States Department of the Interior. The Mississippi Development Authority shall issue a certificate evidencing the eligible credit if the taxpayer is found to be eligible for the tax credit. The taxpayer shall attach the certificate to all income tax returns on which the credit is claimed.
SECTION 2. This act shall take effect and be in force from and after January 1, 2005.