MISSISSIPPI LEGISLATURE

2015 Regular Session

To: Ways and Means

By: Representatives Gunn, Rushing, Miles, Steverson, DeBar, Nelson, Horan, Reynolds, Dixon

House Bill 33

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR TAXPAYERS THAT EMPLOY CERTAIN PERSONS WHO ARE HONORABLY DISCHARGED VETERANS WHO SERVED IN THE ARMED FORCES OF THE UNITED STATES; TO PROVIDE THE AMOUNT OF THE TAX CREDIT; TO LIMIT THE AMOUNT OF THE TAX CREDIT THAT MAY BE CLAIMED IN A TAXABLE YEAR; TO AUTHORIZE ANY TAX CREDIT CLAIMED BUT NOT USED IN ANY TAXABLE YEAR TO BE CARRIED FORWARD FOR FIVE CONSECUTIVE YEARS; AND FOR RELATED PURPOSES.

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

     SECTION 1.  (1)  Subject to the provisions of this section, a taxpayer that employs a person who is (a) a veteran who served in the Armed Forces of the United States and was honorably discharged on or after January 1, 2010, and (b) initially hired as an employee of the taxpayer on or after January 1, 2015, shall be allowed an annual credit against the taxes imposed under this chapter.  The credit shall be for an annual amount of Two Thousand Dollars ($2,000.00) for five (5) years for each person so employed.  A taxpayer may not claim a tax credit for hiring a person whose employment was previously used by the taxpayer to claim the tax credit.  The tax credit shall not exceed the amount of income tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to the taxpayer under this chapter, except credit for tax payments made by or on behalf of the taxpayer.  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.  In order to be eligible to claim a tax credit for an employee, the taxpayer must employ the employee for at least six (6) consecutive months during the year for which the credit is claimed and the employee must work an average of at least thirty (30) hours per week for the taxpayer during that time. 

     (2)  The tax credits provided for in this section shall be in addition to any other credit authorized under law.

     (3)  Any taxpayer who is eligible for the credit authorized in this section before January 1, 2018, shall be eligible for the credit authorized in this section, notwithstanding the repeal of this section, and shall be allowed to carry forward the credit after January 1, 2018, as provided for in subsection (1) of this section.

     (4)  This section shall be repealed from and after January 1, 2018.

     SECTION 2.  Section 1 of this act shall be codified as a separate 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, 2015.