MISSISSIPPI LEGISLATURE
2007 Regular Session
To: Finance
By: Senator(s) Robertson, Butler, Chaney, Dearing, Fillingane, Frazier, Gollott, Harden, Hewes, Hyde-Smith, Jackson (11th), King, Lee (35th), Mettetal, Moffatt, Posey, Thomas, Walls, White
AN ACT TO AMEND SECTION 27-7-22.29, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE CHAIRMAN OF THE STATE TAX COMMISSION TO WAIVE THE PERIOD OF TIME WITHIN WHICH THE JOBS TAX CREDIT FOR PRODUCERS OF ALTERNATIVE ENERGY MAY BE UTILIZED BY PRODUCERS THAT ARE UNABLE TO MAINTAIN THE REQUIRED NUMBER OF JOBS AS A DIRECT RESULT OF CERTAIN DISASTERS; TO AUTHORIZE THE CHAIRMAN OF THE STATE TAX COMMISSION TO WAIVE THE REQUIREMENT THAT A CERTAIN NUMBER OF JOBS BE MAINTAINED BY SUCH PRODUCERS AND EXTEND THE CARRYFORWARD PERIOD OF THE CREDIT; TO PROVIDE THAT THE PERIOD OF TIME FOR WHICH THE REQUIREMENTS MAY BE WAIVED AND THE CARRYFORWARD MAY BE EXTENDED SHALL NOT EXCEED TWO YEARS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-7-22.29, Mississippi Code of 1972, is amended as follows:
27-7-22.29. (1) Producers are allowed a job tax credit for taxes imposed by Section 27-7-5 equal to One Thousand Dollars ($1,000.00) annually for each net new full-time employee job for a period of twenty (20) years from the date the credit begins; however, if the producer is located in an area that has been declared by the Governor to be a disaster area and as a direct result of the disaster the producer is unable to maintain the required number of employees, the commissioner may extend this time period for not more two (2) years. The credit shall begin on the date selected by the producer; however, the beginning date shall not be more than five (5) years from the date the producer begins manufacturing or producing alternative energy. For the year in which the beginning date occurs, the number of new full-time jobs shall be determined by using the monthly average number of full-time employees subject to the Mississippi income tax withholding. Thereafter, the number of new full-time jobs shall be determined by comparing the monthly average number of full-time employees subject to the Mississippi income tax withholding for the taxable year with the corresponding period of the prior taxable year. Once a producer creates twenty-five (25) or more new full-time employee jobs, the producer shall be eligible for the credit; however, if the producer is located in an area that has been declared by the Governor to be a disaster area and as a direct result of the disaster the producer is unable to maintain the required number of employees, the commissioner may waive the employment requirement for a period of time not to exceed two (2) years. The credit is not allowed for any year of the twenty-year period in which the overall monthly average number of full-time employees subject to the Mississippi income tax withholding falls below twenty-five (25). The State Tax Commission shall adjust the credit allowed each year for the net new employment fluctuations above twenty-five (25).
(2) Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) consecutive years from the close of the tax year in which the credits were earned; however, if the producer is located in an area that has been declared by the Governor to be a disaster area and as a direct result of the disaster the producer is unable to use the existing carryforward, the commissioner may extend the period that the credit may be carried forward for a period of time not to exceed two (2) years. The credit that may be utilized each year shall be limited to an amount not greater than the total state income tax liability of the producer that is generated by, or arises out of, the alternative energy project.
(3) The tax credits provided for in this section shall be in lieu of the tax credits provided for in Section 57-73-21 and any producer utilizing the tax credit authorized in this section shall not utilize the tax credit authorized in Section 57-73-21.
SECTION 2. This act shall take effect and be in force from and after July 1, 2007.