MISSISSIPPI LEGISLATURE
2007 Regular Session
To: Finance
By: Senator(s) Robertson, Butler, Chassaniol, Dearing, Fillingane, Frazier, Gollott, Harden, Hewes, Jackson (11th), Jordan, King, Walls, White
AN ACT TO AMEND SECTION 27-7-22.19, 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 INTEGRATED SUPPLIERS MAY BE UTILIZED BY INTEGRATED SUPPLIERS 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 SUPPLIERS AND EXTEND THE CARRY FORWARD PERIOD OF THE CREDIT; TO PROVIDE THAT THE PERIOD OF TIME FOR WHICH THE REQUIREMENT MAY BE WAIVED SHALL NOT EXCEED TWO YEARS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-7-22.19, Mississippi Code of 1972, is amended as follows:
27-7-22.19. (1) Integrated suppliers 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 for five (5) years from the date the credit commences; however, if the integrated supplier 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 integrated supplier 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 commence on the date selected by the integrated supplier; provided, however, that the commencement date shall not be more than five (5) years from the date the integrated supplier commences commercial production. For the year in which the commencement date occurs, the number of new full-time jobs shall be determined by using the monthly average number of full-time employees subject to 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 Mississippi income tax withholding for the taxable year with the corresponding period of the prior taxable year. Only those integrated suppliers that increase employment by twenty (20) or more are eligible for the credit. The credit is not allowed during any of the five (5) years if the net employment increase falls below twenty (20); however, if the integrated supplier 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 integrated supplier 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 State Tax Commission shall adjust the credit allowed each year for the net new employment fluctuations above the minimum level of twenty (20).
(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 integrated supplier 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 integrated supplier 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 fifty percent (50%) of the taxpayer's state income tax liability which is attributable to income derived from operation in the state for that year.
(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 integrated supplier utilizing the tax credit authorized in this section shall not utilize the tax credit authorized in Section 57-73-21.
(4) As used in this section the term "integrated supplier" means a supplier located on the project site which provides goods or services on the project site solely for a project as defined in Section 57-75-5(f)(iv)1.
SECTION 2. This act shall take effect and be in force from and after July 1, 2007.