MISSISSIPPI LEGISLATURE
2011 Regular Session
To: Ways and Means
By: Representative Dickson
AN ACT TO PROVIDE AN INCOME TAX CREDIT FOR PREMIUMS PAID BY A SMALL BUSINESS FOR HEALTH INSURANCE FOR ITS EMPLOYEES AND ANY DEPENDENTS OF SUCH EMPLOYEES; TO LIMIT THE MAXIMUM AMOUNT OF THE CREDIT; TO PROVIDE THAT ANY UNUSED TAX CREDIT MAY BE CARRIED FORWARD; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) A taxpayer that is a small business shall be allowed a credit against the income taxes imposed under this chapter in an amount equal to amounts paid by the taxpayer as premiums for health insurance covering the taxpayer's employees and any dependents of such employees. The credit provided for in this section shall not exceed the lesser of the aggregate amount paid by the taxpayer for such insurance premiums during the taxable year or the amount of tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to such taxpayer under this chapter, except credit for tax payments made by or on behalf of the taxpayer. Any unused portion of the credit may be carried forward for the succeeding five (5) tax years. Any amount of health insurance premiums paid by a taxpayer that is applied toward the credit authorized in this section may not be used as a deduction by the taxpayer for state income tax purposes.
(2) Tax credits authorized by this section that are earned by a partnership, limited liability company, S corporation or other similar pass-through entity, may be allocated to the partners, members or shareholders of such entity on a pro rata basis or in accordance with the provisions of any agreement of the partners, members or shareholders.
(3) For the purposes of this section, the term "small business" means any commercial enterprise with less than fifty (50) full-time employees, less than One Million Dollars ($1,000,000.00) in net worth or less than One Hundred Seventy-five Thousand Dollars ($175,000.00) in net annual profit after taxes.
SECTION 2. Section 1 of this act shall be codified as a new section in Chapter 7, Title 27, Mississippi Code of 1972.
SECTION 3. This act shall take effect and be in force from and after January 1, 2011.