Amendment_Report_for

SECTION 1. (1) As used in this section, the term "port" means a state, county or municipal port or harbor established pursuant to Sections 59-5-1 through 59-5-69, Sections 59-7-1 through 59-7-519, Sections 59-9-1 through 59-9-85 or Sections 59-11-1 through 59-11-7.

(2) Subject to the provisions of this section, for any taxpayer utilizing the port facilities at any port for the import of cargo that is unloaded from a carrier calling at any such port, a credit against the taxes imposed pursuant to Chapters 7 and 13 of Title 27, Mississippi Code of 1972, shall be allowed in the amounts provided in this section. In order to be eligible for the credit authorized under this section, a taxpayer must either (a) locate its United States headquarters in Mississippi on or after July 1, 2004, employ at least five (5) permanent full-time employees who actually work at such headquarters and have a minimum capital investment of Five Million Dollars ($5,000,000.00) in Mississippi; or (b) increase the annual amount of cargo imported into Mississippi ports after July 1, 2004, by not less than two hundred thousand (200,000) metric tons. For the purposes of this section, "full-time employee" shall mean an employee who works at least thirty-five (35) hours per week. In determining the annual increase in cargo imported into Mississippi, the taxpayer will compare the total tonnage of the imports in any taxable year ending after July 1, 2004, to the total tonnage of imports during its most recent taxable year ending prior to July 1, 2004.

(3) (a) Except as otherwise provided by this subsection and subsection (4) of this section, the amount of the credit allowed pursuant to this section shall be the total of the following charges on import of cargo paid by the taxpayer:

(i) Receiving into the port;

(ii) Handling from a vessel or barge; and

(iii) Wharfage.

(b) The credit allowed pursuant to this section shall not include charges paid by a corporation on the import of forest products.

(4) The credit provided for in this section shall first be used against the income tax liability of the taxpayer and shall not exceed fifty percent (50%) of the amount of income tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to such taxpayer under Chapter 7 of Title 27, Mississippi Code of 1972, except credit for tax payments made by or on behalf of the taxpayer. Any portion of the credit not used as a credit against the income tax imposed upon the taxpayer may be used as a credit against the franchise tax imposed upon the taxpayer under Chapter 13 of Title 27, Mississippi Code of 1972. Any unused portion of the credit may be carried forward for the succeeding five (5) years. The maximum cumulative credit that may be claimed by a taxpayer under this section that locates its United States headquarters in Mississippi is limited to One Million Dollars ($1,000,000.00) if the taxpayer employs at least five (5), but not more than twenty-five (25) permanent full-time employees at its headquarters in Mississippi; Two Million Dollars ($2,000,000.00) if the taxpayer employs more than twenty-five (25), but not more than one hundred (100) permanent full-time employees at its headquarters in Mississippi; Three Million Dollars ($3,000,000.00) if the taxpayer employs more than one hundred (100), but not more than two hundred (200) permanent full-time employees at its headquarters in Mississippi; and Four Million Dollars ($4,000,000.00) if the taxpayer employs more than two hundred (200) permanent full-time employees at its headquarters in Mississippi. The maximum cumulative credit that may be claimed by any other eligible taxpayer is limited to Four Million Dollars ($4,000,000.00).

(5) To obtain the credit provided for in this section, a taxpayer must provide to the State Tax Commission a statement from the governing authority of the port certifying the amount of charges paid by the taxpayer for which a credit is claimed and any other information required by the State Tax Commission.

(6) Any taxpayer who is eligible, before July 1, 2007, for the credit provided for in this section, shall remain eligible for such credit after July 1, 2007, notwithstanding the repeal of this section.

SECTION 2. The Mississippi Development Authority shall report annually to the Legislature regarding the impact of the credit granted in Section 1 of this act on shipping and economic growth. Each report shall show the overall annual increase in shipping at each port for the most recent year for which data is available and for each of the previous five (5) years. Each report shall estimate the number of jobs created or retained at each port and in businesses related to port activity at each port since January 1, 2005, as compared to the number of similar jobs created during the ten (10) years preceding January 1, 2005. Each report shall state the net economic impact on the state as a result of the tax credit provided for in Section 1 of this act. The Mississippi Development Authority shall file a copy of the report with the Governor, the Secretary of the Senate, the Clerk of the House of Representatives and the Chairmen of the House Ways and Means Committee and the Senate Finance Committee of the Legislature on May 1 of each year. The State Tax Commission and all state, county and municipal ports shall cooperate with the Mississippi Development Authority in providing the information required in the annual reports.

SECTION 3. Sections 1 and 2 of this act shall be repealed from and after July 1, 2007.

SECTION 4. This act shall take effect and be in force from and after January 1, 2005, and shall stand repealed from and after December 31, 2004.