Senate Bill 3069

AN ACT TO AMEND SECTION 57-89-5, MISSISSIPPI CODE OF 1972, TO INCREASE THE AMOUNT OF THE INCOME TAX CREDIT TO WHICH MOTION PICTURE PRODUCTION COMPANIES ARE ENTITLED FOR THE EMPLOYMENT OF MISSISSIPPI RESIDENTS IN CONNECTION WITH A STATE-CERTIFIED PRODUCTION IN THIS STATE; TO AMEND SECTION 57-89-7, MISSISSIPPI CODE OF 1972, TO INCREASE THE PORTION OF A MOTION PICTURE PRODUCTION COMPANY'S BASE INVESTMENT TO WHICH SUCH A COMPANY IS ENTITLED AS A REBATE; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 57-89-5, Mississippi Code of 1972, is amended as follows:

57-89-5. (1) A motion picture production company shall be entitled to a tax credit for the employment of residents of Mississippi in connection with production of a state-certified production in the state. The credit shall be equal to fifteen percent (15%) of the total aggregate payroll for residents employed in connection with such state-certified production during the taxable year.

(2) The credit may be applied to the tax liability applicable to the motion picture production company imposed by Chapter 7 of Title 27, Mississippi Code of 1972. The credit shall be limited to the tax liability created by the activity for which the credit is granted.

(3) If the motion picture production company is an entity not subject to the tax imposed by Chapter 7 of Title 27, Mississippi Code of 1972, the tax credit shall flow through to its partners or members as follows:

(a) Corporate partners or members shall claim their share of the credit on their corporation income tax return.

(b) Individual partners or members shall claim their share of the credit on their individual income tax returns.

(c) Partners or members that are estates or trusts shall claim their share of the credit on their fiduciary income tax returns.

(4) Any unused credit may be carried forward no more than ten (10) years from the date the credit was earned. The credit authorized in this section is not refundable.

(5) A motion picture production company desiring a tax credit under this section must submit an application to the State Tax Commission. The application must include a detailed accounting of the total aggregate payroll for residents employed in connection with such state-certified production during the taxable year and any other information required by the State Tax Commission.

(6) The State Tax Commission shall have all powers necessary to implement and administer the provisions of this section, and the commission shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section.

SECTION 2. Section 57-89-7, Mississippi Code of 1972, is amended as follows:

57-89-7. (1) A motion picture production company shall be entitled to a rebate of a portion of the base investment made by the motion picture production company. The amount of the rebate shall be equal to fifteen percent (15%) of the base investment made by the motion picture production company.

(2) A motion picture production company desiring a rebate under this section must submit an application to the State Tax Commission upon completion of the project. The application must include a detailed accounting of the base investment made by the motion picture production company and any other information required by the State Tax Commission. Rebates made by the State Tax Commission under this section shall be made from current income tax collections.

(3) The State Tax Commission shall have all powers necessary to implement and administer the provisions of this section, and the State Tax Commission shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section.

SECTION 3. This act shall take effect and be in force from and after July 1, 2007.