House Bill 1405

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR CERTAIN TAXPAYERS FOR THE COSTS AND EXPENSES INCURRED FOR PURCHASING AND INSTALLING INSULATION, ENERGY-EFFICIENT REPLACEMENT WINDOWS AND HIGH-EFFICIENCY HEATING AND COOLING EQUIPMENT ON PROPERTY UPON WHICH HOMESTEAD EXEMPTION IS GRANTED; TO LIMIT THE AMOUNT OF THE CREDIT; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) There shall be allowed as a credit against the taxes imposed by this chapter fifty percent (50%) of the amount of any costs and expenses incurred by the taxpayer, not to exceed Five Hundred Dollars ($500.00) per year, for purchasing and installing insulation, energy-efficient replacement windows and high-efficiency heating and cooling equipment to eligible property. To be eligible for the credit the gross income of the taxpayer may not exceed Thirty Thousand Dollars ($30,000.00); however, if the taxpayer is filing a joint return the adjusted gross income of the taxpayers may not exceed Forty Thousand Dollars ($40,000.00). The credit that may be used in each year shall be limited to the amount of income tax imposed on the taxpayer for the taxable year.

(2) The tax credit authorized by this section shall apply only to improvements made to eligible property during calendar years 2011 and 2012.

(3) To claim the credit authorized pursuant to this section, the taxpayer shall attach a copy of the tax receipt for homestead exemption on the eligible property along with supporting documentation as to the improvements made to the eligible property to all income tax returns upon which the credit is claimed.

(4) As used in this section, "eligible property" means property located in Mississippi, used for residential purposes, owned by the taxpayer and upon which homestead exemption is granted.

SECTION 2. Section 1 of this act shall be codified 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.