MISSISSIPPI LEGISLATURE
2014 Regular Session
To: Finance
By: Senator(s) Fillingane
AN ACT TO AMEND SECTION 27-7-22.3, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE INCOME TAX CREDIT FOR ECONOMIC DEVELOPMENT PROJECTS FOR WHICH THE MISSISSIPPI BUSINESS FINANCE CORPORATION ISSUED BONDS FOR THE PURPOSE OF FINANCING THE APPROVED COSTS OF THE PROJECT PRIOR TO JULY 1, 1994, SHALL APPLY TO INCOME THAT IS GENERATED BY OR ARISING OUT OF THE MANUFACTURED ITEM DIRECTLY RELATED TO THE ECONOMIC DEVELOPMENT PROJECT; TO PROVIDE THAT THIS PROVISION SHALL APPLY TO ANY ORIGINAL RETURN FILED AFTER THE EFFECTIVE DATE OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-7-22.3, Mississippi Code of 1972, is amended as follows:
[In cases involving an economic development project for which the Mississippi Business Finance Corporation has issued bonds for the purpose of financing the approved costs of such project prior to July 1, 1994, this section shall read as follows:]
27-7-22.3. (1) For
taxpayers who are required to pay a job assessment fee as provided in Section
57-10-413, there shall be allowed as a credit against the taxes imposed by this
chapter, an amount equal to the amount of the job assessment fee imposed upon
such taxpayer pursuant to Section 57-10-413. If the amount allowable as a
credit exceeds the tax imposed by this article * * *, the amount
of such excess shall not be refundable or carried forward to any other taxable
year.
(2) For any approved company as defined in Section 57-10-401, there shall be allowed against the taxes imposed by this chapter on the income of the approved company generated by or arising out of the economic development project (as defined in Section 57-10-401) or generated by or arising out of the manufactured item directly related to the economic development project, a credit in an amount not to exceed the total debt service paid under a financing agreement entered into under Section 57-10-409. The tax credit allowed in this subsection shall not exceed the amount of taxes due the State of Mississippi.
[In cases involving an economic development project for which the Mississippi Business Finance Corporation has not issued bonds for the purpose of financing the approved costs of such project prior to July 1, 1994, but has issued bonds for such project prior to July 1, 1997, or in cases involving an economic development project which has been induced by a resolution of the Board of Directors of the Mississippi Business Finance Corporation that has been filed with the State Tax Commission prior to July 1, 1997, this section shall read as follows:]
27-7-22.3. (1) For
taxpayers who are required to pay a job assessment fee as provided in Section
57-10-413, there shall be allowed as a credit against the taxes imposed by this
chapter, an amount equal to the amount of the job assessment fee imposed upon
such taxpayer pursuant to Section 57-10-413. If the amount allowable as a
credit exceeds the tax imposed by this article * * *, the amount
of such excess shall not be refundable or carried forward to any other taxable
year.
(2) For any approved company as defined in Section 57-10-401, there shall be allowed against the taxes imposed by this chapter on the income of the approved company generated by or arising out of the economic development project (as defined in Section 57-10-401), a credit in an amount not to exceed the total debt service paid under a financing agreement entered into under Section 57-10-409. The tax credit allowed in this subsection shall not exceed the amount of taxes due the State of Mississippi. The amount of income of the approved company generated by or arising out of the economic development project shall be determined by a formula adopted by the Mississippi Business Finance Corporation.
[In cases involving an economic development project for which the Mississippi Business Finance Corporation has not issued bonds for the purpose of financing the approved costs of such project prior to July 1, 1997, or in cases involving an economic development project which has not been induced by a resolution of the Board of Directors of the Mississippi Business Finance Corporation that has been filed with the State Tax Commission prior to July 1, 1997, this section shall read as follows:]
27-7-22.3. For any approved company as defined in Section 57-10-401, there shall be allowed against the taxes imposed by this chapter on the income of the approved company generated by or arising out of the economic development project (as defined in Section 57-10-401), a credit in an amount not to exceed the total debt service paid under a financing agreement entered into under Section 57-10-409; provided, however, that the tax credit allowed in this subsection shall not exceed eighty percent (80%) of the amount of taxes due the State of Mississippi prior to the application of the credit. To the extent that financing agreement annual payments exceed the amount of the credit authorized pursuant to this section in any taxable year, such excess payment may be recouped from excess credits in succeeding years not to exceed three (3) years following the date upon which the credit was earned. The amount of income of the approved company generated by or arising out of the economic development project shall be determined by a formula adopted by the Mississippi Business Finance Corporation.
SECTION 2. The amendments contained in Section 1 of this act shall apply to any original return filed after the effective date of this act.
SECTION 3. This act shall take effect and be in force from and after January 1, 2014.