MISSISSIPPI LEGISLATURE
2010 Regular Session
To: Ways and Means
By: Representative Ward
AN ACT TO PROVIDE THAT ENTERPRISES OWNING OR OPERATING CERTAIN FACILITIES THAT PRODUCE RENEWABLE ENERGY THROUGH FIRING OR CO-FIRING BIOMASS SHALL BE ALLOWED AN ANNUAL INCOME TAX CREDIT FOR A PORTION OF THE INVESTMENTS MADE BY THE ENTERPRISE IN THE INITIAL ESTABLISHMENT OF THE FACILITY; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) As used in this section:
(a) "Eligible facility" means a new facility with a minimum capital investment from private sources of not less than Two Million Dollars ($2,000,000.00), that:
(i) Consists of all components necessary for the production of renewable energy from the use of biomass; and
(ii) Produces renewable energy.
An eligible facility includes all burners and boilers, any handling and delivery equipment that supplies fuel directly to and is integrated with such burners and boilers, steam headers, turbines, generators, property used for the collection, processing or storage of biomass, transformers, pipelines and all other property used in the facility.
(b) "Biomass" means renewable organic matter such as agricultural crops; crop waste residues; wood, animal and municipal waste; aquatic plants; fungal growth and similar matter.
(c) "Renewable energy" means any fuel produced from biomass.
(2) An enterprise owning or operating an eligible facility is allowed an annual tax credit against taxes imposed by Section 27-7-5 in an amount equal to twenty percent (20%) of investments made by the enterprise in the initial establishment of an eligible facility. The credit shall commence on the date selected by the enterprise; however, the commencement date shall not be more than two (2) years from the date the eligible facility becomes fully operational.
(3) 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. The credit that may be used in any one (1) taxable year shall be limited to an amount not greater than fifty percent (50%) of the total state income tax liability of the enterprise for that year that is generated by, or arises out of, the eligible facility.
SECTION 2. Section 1 of this act shall be codified as a separate code section in Chapter 7, Title 27, Mississippi Code of 1972.
SECTION 3. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.
SECTION 4. This act shall take effect and be in force from and after July 1, 2010.