MISSISSIPPI LEGISLATURE
2016 Regular Session
To: Finance
By: Senator(s) Fillingane, Dearing
AN ACT TO AMEND SECTION 27-7-22.31, MISSISSIPPI CODE OF 1972, TO WHICH AUTHORIZES AN INCOME TAX CREDIT FOR COSTS AND EXPENSES INCURRED FOR THE REHABILITATION OF CERTAIN HISTORIC STRUCTURES, TO PROVIDE THAT SINGLE-FAMILY HOMES SHALL NOT BE ELIGIBLE FOR THE TAX CREDIT; TO INCREASE THE MAXIMUM AGGREGATE AMOUNT OF TAX CREDITS THAT MAY BE AWARDED; TO LIMIT THE AMOUNT OF CREDITS THAT MAY BE AWARDED IN ANY ONE FISCAL YEAR; TO PROVIDE THAT THE TAX CREDIT SHALL APPLY TO TAXPAYERS WHO HAVE BEEN ISSUED A CERTIFICATE EVIDENCING THE ELIGIBLE CREDIT BEFORE DECEMBER 31, 2031, OR WHO, BEFORE DECEMBER 31, 2031, HAVE RECEIVED A DETERMINATION IN WRITING FROM THE MISSISSIPPI DEPARTMENT OF ARCHIVES AND HISTORY THAT THE REHABILITATION IS CONSISTENT WITH THE HISTORIC CHARACTER OF THE PROPERTY AND THAT THE PROPERTY MEETS THE UNITED STATES SECRETARY OF THE INTERIOR'S STANDARDS FOR REHABILITATION AND WHO ARE ISSUED A CERTIFICATE EVIDENCING THE ELIGIBLE CREDIT ON OR AFTER DECEMBER 31, 2031; TO AMEND SECTION 57-26-5, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT CERTIFICATES ISSUED UNDER THE TOURISM PROJECT SALES TAX INCENTIVE PROGRAM AUTHORIZING PARTICIPATION IN THE PROGRAM BY ENTITIES THAT ARE DEVELOPING TOURISM PROJECTS THAT ARE CULTURAL RETAIL ATTRACTIONS SHALL EXPIRE ON JULY 1, 2016, UNLESS THE PROJECT IS COMPLETED AS DESCRIBED IN THE INITIAL APPLICATION BY SUCH DATE; TO PROVIDE THAT ANY CHANGE IN THE LOCATION OR ANY OTHER ASPECTS OF THE PROJECT FROM WHAT WAS DESCRIBED IN THE APPLICATION SHALL RENDER THE CERTIFICATE OF PARTICIPATION VOID; TO AMEND SECTION 57-115-5, MISSISSIPPI CODE OF 1972, TO INCREASE BY $50,000,000.00 THE AGGREGATE AMOUNT OF INVESTMENT TAX CREDITS THAT MAY BE ALLOCATED TO PARTICIPATING INVESTORS OF MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANIES UNDER THE MISSISSIPPI SMALL BUSINESS INVESTMENT ACT; TO PROVIDE THE TAXABLE YEARS IN WHICH A PARTICIPATING INVESTOR MAY CLAIM THE ADDITIONAL CREDITS SO ALLOCATED AGAINST HIS PREMIUM TAX LIABILITY; TO BRING FORWARD SECTIONS 57-26-1, 57-73-25 AND 57-89-7, MISSISSIPPI CODE OF 1972; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-7-22.31, Mississippi Code of 1972, is amended as follows:
27-7-22.31. (1) As used in this section:
(a) "Certified historic structure" means a property located in Mississippi that has been:
(i) Listed individually on the National Register of Historic Places; or
(ii) Determined eligible for the National Register of Historic Places by the Secretary of the United States Department of the Interior and will be listed within thirty (30) months of claiming the credit authorized by this section; or
(iii) Property designated a Mississippi Landmark by the Department of Archives and History pursuant to Section 39-7-3 et seq.
(b) "Eligible property" means property located in Mississippi and offered or used for residential or business purposes; however, the term "eligible property" shall not include single-family homes.
(c) "Structure in a certified historic district" means a structure (and its structural components) located in Mississippi which:
(i) Is listed in the National Register of Historic Places; or
(ii) Has been determined eligible for the National Register of Historic Places by the Secretary of the United States Department of the Interior and will be listed within thirty (30) months of claiming the credit authorized by this section; or
(iii) Is located in a registered historic district listed on the National Register of Historic Places or located in a potential district that has been determined eligible for the National Register of Historic Places by the Secretary of the United States Department of the Interior and will be listed within thirty (30) months of claiming the credit authorized by this section, and is certified by the Secretary of the United States Department of the Interior as being of historic significance to the district; or
(iv) Is certified by the Mississippi Department of Archives and History as contributing to the historic significance of:
1. A certified historic district listed on the National Register of Historic Places; or
2. A potential district that has been determined eligible for the National Register of Historic Places by the Secretary of the United States Department of the Interior and will be listed within thirty (30) months of claiming the credit authorized by this section; or
3. A local district that has been certified by the United States Department of the Interior.
(d) "Department" means the Department of Archives and History.
(2) Any taxpayer incurring costs and expenses for the rehabilitation of eligible property, which is a certified historic structure or a structure in a certified historic district, shall be entitled to a credit against the taxes imposed pursuant to this chapter in an amount equal to twenty-five percent (25%) of the total costs and expenses of rehabilitation incurred after January 1, 2006, which shall include, but not be limited to, qualified rehabilitation expenditures as defined under Section 47(c)(2)(A) of the Internal Revenue Code of 1986, as amended, and the related regulations thereunder:
(a) If the costs and expenses associated with rehabilitation exceed:
(i) Five Thousand Dollars ($5,000.00) in the case of an owner-occupied dwelling; or
(ii) Fifty percent (50%) of the total basis in the property in the case of all other properties; and
(b) The rehabilitation is consistent with the standards of the Secretary of the United States Department of the Interior as determined by the department.
(3) Any taxpayer eligible for the credit authorized by this section may claim the credit in phases if:
(a) There is a written set of architectural plans and specifications for all phases of the rehabilitation (written plans outlining and describing all phases of the rehabilitation shall be accepted as written plans and specifications);
(b) The written set of architectural plans and specifications are completed before the physical work on the rehabilitation begins; and
(c) It can reasonably be expected that all phases of the rehabilitation will be completed.
(4) (a) (i) If the amount of the tax credit established by this section exceeds the total state income tax liability for the year in which the rehabilitated property is placed in service, the amount that exceeds the total state income tax liability may be carried forward for the ten (10) succeeding tax years.
(ii) If the amount of the tax credit established by this section exceeds Two Hundred Fifty Thousand Dollars ($250,000.00), the taxpayer may elect to claim a refund in the amount of seventy-five percent (75%) of the excess credit in lieu of the ten-year carryforward. The election must be made in the year in which the rehabilitated property is placed in service. Refunds will be paid in equal installments over a two-year period and shall be made from current collections.
(iii) Refund requests shall be submitted to the Department of Revenue on forms prescribed by the department. Refunds shall be made from current tax collections.
(b) Not-for-profit entities, including, but not limited to, nonprofit corporations organized under Section 79-11-101 et seq. shall be ineligible for the credit authorized by this section. Credits granted to a partnership, a limited liability company taxed as a partnership or multiple owners of property shall be passed through to the partners, members or owners on a pro rata basis or pursuant to an executed agreement among the partners, members or owners documenting an alternative distribution method. Partners, members or other owners of a pass-through entity are not eligible to elect a refund of excess credit in lieu of a carryforward of the credit. However, a partnership or limited liability company taxed as a partnership may elect to claim a refund of excess credit at the entity level on a form prescribed by the Department of Revenue. Additionally, excess tax credits that are attributable to rehabilitated property that was placed in service by a pass-through entity prior to January 1, 2011, and that have previously been allocated to and are held by another pass-through entity prior to January 1, 2011, may be refunded to such other pass-through entity.
(5) (a) To claim the credit authorized pursuant to this section, the taxpayer shall apply to the department which shall determine the amount of eligible rehabilitation costs and expenses and whether the rehabilitation is consistent with the standards of the Secretary of the United States Department of the Interior. The department shall issue a certificate evidencing the eligible credit if the taxpayer is found to be eligible for the tax credit. The taxpayer shall attach the certificate to all income tax returns on which the credit is claimed.
(b) The aggregate
amount of tax credits that may be awarded under this section shall not exceed * * * One
Hundred Million Dollars ($100,000,000.00) and not more than Eight Million
Dollars ($8,000,000.00) may be allocated in any one (1) state fiscal year.
(6) (a) The credit received by a taxpayer pursuant to this section is subject to recapture if:
(i) The property is one that has been determined eligible for the National Register of Historic Places but is not listed on the National Register of Historic Places within thirty (30) months of claiming the credit authorized by this section;
(ii) The potential district in which the property is located is not listed on the National Register of Historic Places within thirty (30) months of claiming the credit authorized by this section; or
(iii) The rehabilitation of the property for which the credit was granted is abandoned.
(b) The taxpayer shall notify the department and the Department of Revenue if any of the situations that subject the credit to recapture occur.
(7) (a) The board of trustees of the department shall establish fees to be charged for the services performed by the department under this section and shall publish the fee schedule. The fees contained in the schedule shall be in amounts reasonably calculated to recover the costs incurred by the department for the administration of this section. Any taxpayer desiring to participate in the tax credits authorized by this section shall pay the appropriate fee as contained in the fee schedule to the department, which shall be used by the department, without appropriation, to offset the administrative costs of the department associated with its duties under this section.
(b) There is hereby created within the State Treasury a special fund into which shall be deposited all the fees collected by the department pursuant to this section. Money deposited into the fund shall not lapse at the end of any fiscal year and investment earnings on the proceeds in such special fund shall be deposited into such fund. Money from the fund shall be disbursed upon warrants issued by the State Fiscal Officer upon requisitions signed by the executive director of the department to assist the department in carrying out its duties under this section.
(8) This section shall only apply to taxpayers:
(a) Who have been
issued a certificate evidencing the eligible credit before December 31, * * * 2031; or
(b) Who, before
December 31, * * * 2031, have received a determination
in writing from the Mississippi Department of Archives and History, in
accordance with the department's Historic Preservation Certificate Application,
Part 2, that the rehabilitation is consistent with the historic character of
the property and that the property meets the United States Secretary of the
Interior's Standards for Rehabilitation, or will meet the standards if certain
specified conditions are met, and, who are issued a certificate evidencing the
eligible credit on or after December 31, * * * 2031.
SECTION 2. Section 57-115-5, Mississippi Code of 1972, is amended as follows:
57-115-5. (1) (a) The MDA must provide a standardized format for applying for the Mississippi small business investment credit authorized under this chapter, and for certification as a Mississippi small business investment company.
(b) An applicant for certification as a primary Mississippi small business investment company must:
(i) File an application with the MDA which shall include a business plan detailing:
1. The approximate percentage of designated capital the applicant will invest in qualified businesses by the second, fourth and sixth anniversaries of its allocation date;
2. The industry segments listed by the North American Industrial Classification System code and percentage of designated capital in which the applicant will invest; and
3.
The number of jobs that will be created or retained as a result of the
applicant's investments once all designated capital has been invested. A job
shall be considered created or retained if the job pays one hundred twenty-five
percent (125%) of the state average annual wage and is maintained for at least
three (3) years. The application shall project, at a minimum, that one (1) job
shall be created or maintained for each One Hundred * * * Fifty Thousand Dollars ($150,000.00) in
credits awarded to the participating investors of the Mississippi small
business investment company;
(ii) Pay a nonrefundable application fee of Seven Thousand Five Hundred Dollars ($7,500.00) at the time of filing the application;
(iii) Submit as part of its application an audited balance sheet that contains an unqualified opinion of an independent certified public accountant issued not more than thirty-five (35) days before the application date that states that the applicant has an equity capitalization of Five Hundred Thousand Dollars ($500,000.00) or more in the form of unencumbered cash, marketable securities or other liquid assets; and
(iv) Have at least two (2) principals or persons, at least one (1) of which is primarily located in Mississippi, employed or engaged to manage the funds who each have a minimum of five (5) years of money management experience in the venture capital or private equity or lending industry.
(c) An applicant for certification as a secondary Mississippi small business investment company must:
(i) File an application with the MDA which shall include a business plan detailing:
1. The approximate percentage of designate capital the applicant will invest in qualified businesses by the second, fourth and sixth anniversaries of its allocation date;
2. The industry segments listed by the North American Industrial Classification System code and percentage of designated capital in which the applicant will invest; and
3.
The number of jobs that will be crested or retained as a result of the
applicant's investments once all designated capital has been invested. A job
shall be considered created or retained if the job pays one hundred twenty-five
percent (125%) of the state average annual wage and is maintained for at least
three (3) years. The application shall project, at a minimum, that one (1) job
shall be created or maintained for each One Hundred * * * Fifty Thousand Dollars ($150,000.00) in credits
awarded to the participating investors of the Mississippi small business
investment company;
(ii) Pay a nonrefundable application fee of Three Thousand Seven Hundred Fifty Dollars ($3,750.00) at the time of filing the application;
(iii) Submit as part of its application an audited balance sheet that contains an unqualified opinion of an independent certified public accountant issued not more than thirty-five (35) days before the application date that states that the applicant has an equity capitalization of One Hundred Fifty Thousand Dollars ($150,000.00) or more in the form of unencumbered cash, marketable securities or other liquid assets;
(iv) Demonstrate that fifty percent (50%) of all secondary investment company investments have been in Mississippi, and all of the applicant's employees have lived in Mississippi for at least two (2) years prior to the application being filed, and that those who are employed or engaged to manage the funds have a minimum of three (3) years of money management experience in the venture capital or private equity or lending industry; and
(v) Submit as part of its application a signed and notarized partnership agreement letter with a certified primary Mississippi small business investment company.
(d) The MDA may certify partnerships, corporations, trusts, or limited liability companies, organized on a for-profit basis, which submit an application to be designated as a Mississippi small business investment company if the applicant is located, headquartered, and licensed or registered to conduct business in Mississippi, has as its primary business activity the investment of cash in qualified businesses, and meets all of the criteria of this section.
(e) The MDA must:
(i) Review the organizational documents of each applicant for certification and the business history of each applicant;
(ii) Determine whether the applicant has satisfied all of the requirements of this section; and
(iii) Determine whether the officers and the board of directors, general partners, trustees, managers or members are trustworthy and are thoroughly acquainted with the requirements of this chapter.
(f) Within forty-five (45) days after the receipt of an application, the MDA may issue the certification or refuse the certification and may communicate in detail to the applicant the grounds for refusal, including suggestions for the removal of the grounds.
(g) The MDA must begin accepting applications to become a Mississippi small business investment company not later than August 1, 2012, for credits allocated in subsection (4)(a) of this section, and not later than August 1, 2016, for credits allocated in subsection (4)(b) of this section.
(h) Certification by the MDA and operation of a primary Mississippi small business investment company is not subject to completion of any relationship or agreement with a secondary Mississippi small business investment company, and it is not the intent of this chapter to compel any such agreement.
(2) (a) An insurance company or affiliate of an insurance company must not, directly or indirectly:
(i) Beneficially own, whether through rights, options, convertible interest, or otherwise, fifteen percent (15%) or more of the voting securities or other voting ownership interest of a Mississippi small business investment company;
(ii) Manage a Mississippi small business investment company; or
(iii) Control the direction of investments for a Mississippi small business investment company.
(b)
A Mississippi small business investment company may obtain one * * * or more guaranties, indemnities, bonds,
insurance policies, or other payment undertakings for the benefit of its
participating investors from any entity, except that in no case can more than
one (1) participating investor of a Mississippi small business investment
company on an aggregate basis with all affiliates of the participating
investor, be entitled to provide guaranties, indemnities, bonds, insurance
policies, or other payment undertakings in favor of the participating investors
of a Mississippi small business investment company and its affiliates in this
state.
(c) This subsection (2) does not preclude a participating investor, insurance company or other party from exercising its legal rights and remedies, including, without limitation, interim management of a Mississippi small business investment company, in the event that a Mississippi small business investment company is in default of its statutory obligations or its contractual obligations to a participating investor, insurance company, or other party, or from monitoring a Mississippi small business investment company to ensure its compliance with this chapter or disallowing any investments that have not been approved by the MDA.
(d) The MDA may contract with an independent third party to review, investigate, and certify that the applications comply with the provisions of this chapter.
(3) (a) At the time of its investment of designated capital a participating investor shall earn a vested credit against the participating investor's state premium tax liability in an amount equal to one hundred percent (100%) of the participating investor's investment of designated capital in a Mississippi small business investment company, subject to the limits imposed by this section.
(b) From and after January 1, 2015, a participating investor may claim the credit allocated in subsection (4)(a) of this section as follows:
(i) For the 2015 taxable year, an amount equal to twenty percent (20%) of the participating investor's investment of designated capital;
(ii) For the 2016 taxable year, an amount equal to twenty percent (20%) of the participating investor's investment of designated capital;
(iii) For the 2017 taxable year, an amount equal to twenty percent (20%) of the participating investor's investment of designated capital;
(iv) For the 2018 taxable year, an amount equal to twenty percent (20%) of the participating investor's investment of designated capital; and
(v) For the 2019 taxable year, an amount equal to twenty percent (20%) of the participating investor's investment of designated capital.
(c) From and after January 1, 2019, a participating investor may claim the credit allocated in subsection (4)(b) of this section as follows:
(i) For the 2019 taxable year, an amount equal to twenty percent (20%) of the participating investor's investment of designated capital;
(ii) For the 2020 taxable year, an amount equal to twenty percent (20%) of the participating investor's investment of designated capital;
(iii) For the 2021 taxable year, an amount equal to twenty percent (20%) of the participating investor's investment of designated capital;
(iv) For the 2022 taxable year, an amount equal to twenty percent (20%) of the participating investor's investment of designated capital; and
(v) For the 2023 taxable year, an amount equal to twenty percent (20%) of the participating investor's investment of designated capital.
( * * *d) The credit for any taxable year
cannot exceed the state premium tax liability of the participating investor for
the taxable year. If the amount of the credit exceeds the state premium tax
liability of the participating investor for the taxable year, the excess is an
investment tax credit carryover for five (5) years from the date the credit is
first able to be utilized in accordance with paragraph (a) of this subsection (3).
( * * *e) Notwithstanding any provision of
this chapter to the contrary, the granting of any credits against the insurance
premium tax shall not affect the insurance premium tax receipts distributed
pursuant to Sections 83-1-37, 83-1-39, 83-34-39, 45-11-5 and 21-29-233, which
shall take priority over all other distributions of premium tax receipts and
shall be calculated based upon gross insurance premium tax liability before the
application of the tax credits.
( * * *f) A participating investor claiming a
credit under this chapter is not required to pay any additional retaliatory tax
under Section 27-15-123 levied as a result of claiming the credit.
( * * *g) A participating investor is not
required to reduce the amount of tax pursuant to the state premium tax
liability included by the participating investor in connection with ratemaking
for any insurance contract written in this state because of a reduction in the
participating investor's tax liability based on the tax credit allowed under
this chapter.
( * * *h) If the taxes paid by a
participating investor with respect to its state premium tax liability constitute
a credit against any other tax that is imposed by this state, the participating
investor's credit against the other tax shall not be reduced by virtue of the
reduction in the participating investor's tax liability based on the tax credit
allowed under this chapter.
( * * *i) Final decertification of a
Mississippi small business investment company under this chapter prior to such
Mississippi small business investment company meeting the requirements of
Section 57-115-7(1)(a)(ii), shall result in the disallowance and the recapture
of all of the credits allocated to its participating investors under this
chapter. Once a Mississippi small business investment company has satisfied
the requirements of Section 57-115-7(1)(a)(ii), any subsequent decertification
shall not cause the disallowance or recapture of any credits allocated to its
participating investors under this chapter.
( * * *j) The credits allowed under this
chapter are not transferable; however, a participating investor may transfer
credits to an affiliated insurance company provided it gives prior
written notice of such transfer to the MDA and the Department of Revenue.
(4) (a) (i) Through January 1, 2016, the aggregate amount of investment tax credits that may be allocated to all participating investors of Mississippi small business investment companies under this section shall not exceed Fifty Million Dollars ($50,000,000.00), and no Mississippi small business investment company, on an aggregate basis with its affiliates, may file credit allocation claims that exceed Fifty Million Dollars ($50,000,000.00).
(ii) The Fifty Million Dollars ($50,000,000.00) aggregate amount of investment tax credits allocated in this paragraph shall be divided into a primary tax credit pool which may be applied for by certified primary Mississippi small business investment companies and a secondary tax credit pool which may be applied for by certified secondary Mississippi small business investment companies. The secondary tax credit pool shall be Three Million Five Hundred Thousand Dollars ($3,500,000.00) of the total Fifty Million Dollars ($50,000,000.00) aggregate amount of investment tax credits. Secondary Mississippi small business investment companies may not apply for more than One Million Seven Hundred Fifty Thousand Dollars ($1,750,000.00) worth of credits on a single application. A certified secondary Mississippi small business investment company may apply for additional tax credit allocation from the secondary tax credit pool, if the credits are available, after fifty percent (50%) of its previously allocated credits are used in qualified investments.
(iii) If there are any tax credits remaining available for allocation in the secondary tax credit pool on August 1, 2013, those available tax credits shall revert to the primary tax credit pool and be made available to primary Mississippi small business investment companies according to rules and regulations promulgated by the MDA. Prior to August 1, 2013, primary Mississippi small business investment companies, including any wholly owned subsidiary company, shall be prohibited from making application to the MDA to be additionally certified as a secondary Mississippi small business investment company for purposes of the tax credits allocated in this paragraph and prohibited from applying for any tax credit allocation from the secondary tax credit pool. A certified primary Mississippi small business investment company may have ownership equity in a certified secondary Mississippi small business investment company, but the equity interest owned by the certified primary Mississippi small business investment company shall not exceed forty percent (40%).
(b) (i) From and after July 1, 2016, an additional aggregate amount of investment tax credits may be allocated to all participating investors of Mississippi small business investment companies under this section. The amount so allocated shall not exceed Fifty Million Dollars ($50,000,000.00), and no Mississippi small business investment company, on an aggregate basis with its affiliates, may file credit allocation claims on the additional aggregate amount of tax credits that exceed Fifty Million Dollars ($50,000,000.00).
(ii) The Fifty Million Dollars ($50,000,000.00) aggregate amount of investment tax credits allocated in this paragraph shall be divided into a primary tax credit pool which may be applied for by certified primary Mississippi small business investment companies and a secondary tax credit pool which may be applied for by certified secondary Mississippi small business investment companies. The secondary tax credit pool shall be Three Million Five Hundred Thousand Dollars ($3,500,000.00) of the total Fifty Million Dollars ($50,000,000.00) aggregate amount of investment tax credits. Secondary Mississippi small business investment companies may not apply for more than One Million Seven Hundred Fifty Thousand Dollars ($1,750,000.00) worth of credits on a single application. A certified secondary Mississippi small business investment company may apply for additional tax credit allocation from the secondary tax credit pool, if the credits are available, after fifty percent (50%) of its previously allocated credits are used in qualified investments.
(iii) If there are any tax credits remaining available for allocation in the secondary tax credit pool on August 1, 2017, those available tax credits shall revert to the primary tax credit pool and be made available to primary Mississippi small business investment companies according to rules and regulations promulgated by the MDA. Prior to August 1, 2020, primary Mississippi small business investment companies, including any wholly owned subsidiary company, shall be prohibited from making application to the MDA to be additionally certified as a secondary Mississippi small business investment company for purposes of the tax credits allocated in this paragraph and prohibited from applying for any tax credit allocation from the secondary tax credit pool. A certified primary Mississippi small business investment company may have ownership equity in a certified secondary Mississippi small business investment company, but the equity interest owned by the certified primary Mississippi small business investment company shall not exceed forty percent (40%).
( * * *c) Credits must be allocated to
investors in the order that the credit allocation claims are filed with the
MDA.
( * * *d) Any credit allocation claims filed
with the MDA before the initial credit allocation claim filing date will be
deemed to have been filed on the initial credit allocation claim filing date.
The MDA will set the initial credit allocation claim filing date to be not less
than one hundred twenty (120) days and not more than one hundred fifty (150)
days after the date the MDA begins accepting applications for certification.
Credit allocation claims filed on the same day with the MDA must be treated as
having been filed contemporaneously.
( * * *e) If two (2) or more Mississippi
small business investment companies file credit allocation claims with the MDA
on behalf of their respective participating investors on the same day and the
aggregate amount of credit allocation claims exceeds the aggregate limit of
credits authorized under this subsection (4) or the lesser amount of credits
that remain unallocated on that day, then the credits shall be allocated among
the participating investors who filed on that day on a pro rata basis with
respect to the amounts claimed. The pro rata allocation for any one (1) participating
investor is the product obtained by multiplying a fraction, the numerator of
which is the amount of the credit allocation claim filed on behalf of a
participating investor and the denominator of which is the total of all credit
allocation claims filed on behalf of all participating investors on that day,
by the aggregate limit of credits authorized under this subsection (4) or the
lesser amount of credits that remain unallocated on that day.
( * * *f) Within ten (10) business days after
the MDA receives a credit allocation claim filed by a Mississippi small
business investment company on behalf of one or more of its participating
investors, the MDA may notify the Mississippi small business investment company
of the amount of credits allocated to each of the participating investors of
that Mississippi small business investment company. In the event a Mississippi
small business investment company does not receive an investment of designated
capital from each participating investor required to earn the amount of credits
allocated to the participating investor within ten (10) business days of the
Mississippi small business investment company's receipt of notice of
allocation, then it shall notify the MDA on or before the next business day,
and the credits allocated to the participating investor of the Mississippi
small business investment company will be forfeited. The MDA may then
reallocate those forfeited credits among the participating investors of the
other Mississippi small business investment companies on a pro rata basis with
respect to the credit allocation claims filed on behalf of the participating
investors. The MDA may levy a fine of not more than Fifty Thousand Dollars
($50,000.00) on any participating investor that does not invest the full amount
of designated capital required to fund the credits allocated to it by the MDA
in accordance with the credit allocation claim filed on its behalf.
( * * *g) No participating investor, on an
aggregate basis with its affiliates, may file an allocation claim for more than
twenty-five percent (25%) of the maximum amount of investment tax credits
authorized under this subsection (4), regardless of whether the claim is made
in connection with one or more Mississippi small business investment companies.
SECTION 3. Section 57-26-1, Mississippi Code of 1972, is brought forward as follows:
57-26-1. As used in Sections 57-26-1 through 57-26-5, the following terms and phrases shall have the meanings ascribed in this section unless the context clearly indicates otherwise:
(a) "Approved project costs" means actual costs incurred by an approved participant for land acquisition, construction, engineering, design and other costs approved by the Mississippi Development Authority relating to a tourism project; however, for the purposes of a tourism project described in paragraph (d)(iv) of this section, such costs include only those incurred after January 1, 2011, relating to the hotel portion of the project consisting of facilities used for lodging and common areas in that portion of the project. All costs must be verified by an independent third party approved by the MDA. An approved participant shall pay the costs for the third-party verification of costs. Approved project costs may not increase regardless of the actual costs incurred by the project.
(b) "Approved participant" means a person, corporation or other entity issued a certificate by the Mississippi Development Authority under Section 57-26-5.
(c) "MDA" means the Mississippi Development Authority.
(d) "Tourism project" shall include any of the following as may be approved by the MDA:
(i) Theme parks, water parks, entertainment parks or outdoor adventure parks, cultural or historical interpretive educational centers or museums, motor speedways, indoor or outdoor entertainment centers or complexes, convention centers, professional sports facilities, spas, attractions created around a natural phenomenon or scenic landscape and marinas open to the public with a minimum private investment of not less than Ten Million Dollars ($10,000,000.00);
(ii) A hotel with a minimum private investment of Forty Million Dollars ($40,000,000.00) in land, buildings, architecture, engineering, fixtures, equipment, furnishings, amenities and other related soft costs approved by the Mississippi Development Authority, and having a minimum private investment of One Hundred Fifty Thousand Dollars ($150,000.00) per guest room which amount shall be included within the minimum private investment of Forty Million Dollars ($40,000,000.00);
(iii) A public golf course with a minimum private investment of Ten Million Dollars ($10,000,000.00);
(iv) A full service hotel with a minimum private investment of Fifteen Million Dollars ($15,000,000.00) in land, buildings, architecture, engineering, fixtures, equipment, furnishings, amenities and other related soft costs approved by the Mississippi Development Authority, and having a minimum private investment of Two Hundred Thousand Dollars ($200,000.00) per guest room or suite which amount shall be included within the minimum private investment of Fifteen Million Dollars ($15,000,000.00), a minimum of twenty-five (25) guest rooms or suites, and guest amenities such as restaurants, spas and other amenities as determined by the Mississippi Development Authority;
(v) A tourism attraction located within an "entertainment district" as defined in Section 17-29-3 that is open to the public, has seating to accommodate at least forty (40) persons, is open at least five (5) days per week from at least 6:00 p.m. until midnight, serves food and beverages, and provides live entertainment at least three (3) nights per week;
(vi) A cultural retail attraction;
(vii) A tourism attraction located within a historic district where the district is listed in the National Register of Historic Places, where the tourism attraction is open to the public, has seating to accommodate at least forty (40) persons, is open at least five (5) days per week from at least 6:00 p.m. until midnight, serves food and beverages, and provides live entertainment at least three (3) nights per week.
The term "tourism project" does not include any licensed gaming establishment owned, leased or controlled by a business, corporation or entity having a gaming license issued under Section 75-76-1 et seq.; however, the term "tourism project" may include a project described in this paragraph (d) that is owned, leased or controlled by such a business, corporation or entity or in which the business, corporation or entity has a direct or indirect financial interest if the project is in excess of development that the State Gaming Commission requires for the issuance or renewal of a gaming license and is not part of a licensed gaming establishment in which gaming activities are conducted.
The term "tourism project" does not include any facility within the project whose primary business is retail sales or any expansions of existing projects; however, pro shops, souvenir shops, gift shops, concessions and similar retail activities, and cultural retail attractions may be included within the definition of the term "tourism project." In addition, retail activities, regardless of whether the primary business is retail sales, that are part of a resort development may be included within the definition of "tourism project."
(e) "Resort development" means a travel destination development with a minimum private investment of One Hundred Million Dollars ($100,000,000.00) and which consists of (i) a hotel with a minimum of two hundred (200) guest rooms or suites and having a minimum private investment of Two Hundred Thousand Dollars ($200,000.00) per guest room or suite, and (ii) guest amenities such as restaurants, golf courses, spas, fitness facilities, entertainment activities and other amenities as determined by the MDA. Not more than an amount equal to forty percent (40%) of the private investment required by this paragraph may be expended on facilities to house retail activity.
(f) "Cultural retail attraction" means a project which combines destination shopping with cultural or historical interpretive elements specific to Mississippi with a minimum private investment of Fifty Million Dollars ($50,000,000.00) in land, buildings, architecture, engineering, fixtures, equipment, furnishings, amenities and other related soft costs approved by the Mississippi Development Authority and which:
(i) Is located in a qualified resort area as defined in Section 67-1-5;
(ii) Is a part of a master-planned development with a total investment of not less than One Hundred Million Dollars ($100,000,000.00) in land, buildings, architecture, engineering, fixtures, equipment, furnishings, amenities and other related soft costs approved by the Mississippi Development Authority;
(iii) Has a minimum of fifty (50) retail tenants with a minimum of three hundred thousand (300,000) square feet of heated and cooled space; and
(iv) Has a minimum investment of One Million Dollars ($1,000,000.00) in one or more of the following:
1. Art created by Mississippi artists or portraying themes specific to Mississippi;
2. Memorabilia, signage or historical markers which serve to promote the State of Mississippi;
3. Audio/visual equipment used to showcase Mississippi artists;
4. A minimum of one thousand two hundred and fifty (1,250) square feet of heated and cooled space available to the Mississippi Development Authority or its assignee for a period of not less than ten (10) years.
(g) "Retail activity" means businesses whose inventory consists primarily of upscale name brands or their equivalent as determined by the MDA.
(h) "State" means the State of Mississippi.
SECTION 4. Section 57-26-5, Mississippi Code of 1972, is brought forward as follows:
57-26-5. (1) The MDA shall develop, implement and administer the incentive program authorized in Sections 57-26-1 through 57-26-5 and shall promulgate rules and regulations necessary for the development, implementation and administration of such program.
(2) A person, corporation or other entity desiring to participate in the incentive program authorized in Sections 57-26-1 through 57-26-5 must submit an application and an application fee in the amount of Five Thousand Dollars ($5,000.00) to the MDA. Such application must contain (a) plans for the proposed tourism project; (b) a detailed description of the proposed tourism project; (c) the method of financing the proposed tourism project and the terms of such financing; (d) an independent study that identifies the number of out-of-state visitors anticipated to visit the project and the ratio of out-of-state visitors to in-state visitors; and (e) any other information required by the MDA. The Executive Director of the MDA shall review the application and determine if it qualifies as a tourism project under this section and under the rules and regulations promulgated pursuant to this section. If the executive director determines the proposed tourism project qualifies as a tourism project under this section and under the rules and regulations promulgated pursuant to this section, he shall issue a certificate to the person, corporation or other entity designating such person, corporation or other entity as an approved participant and authorizing the approved participant to participate in the incentive program provided for in Sections 57-26-1 through 57-26-5. No certificate designating an entity as an approved participant and authorizing the approved participant to participate in the incentive program shall be issued from and after July 1, 2014, for tourism projects that are cultural retail attractions, or from and after July 1, 2016, for other tourism projects.
(3) (a) A certificate designating an entity as an approved participant and authorizing the approved participant to participate in the incentive program that is issued for tourism projects that are cultural retail attractions shall expire on July 1, 2016, if the project has not been completed as described in the initial application by that date.
(b) A certificate of participation for a cultural retail attraction shall authorize the participation in the incentive program only if the project is as described in the application for the project that was made before July 1, 2014. Any change in the location or any other aspects of the project from what was described in the application shall render the certificate of participation void.
(c) A certificate of participation may not be transferred to an entity that is not named in the certificate.
( * * *4) The MDA shall cause a cost benefit
analysis of the tourism project to be performed by a state institution of
higher learning, the university research center or some other entity approved
by the MDA.
SECTION 5. Section 57-73-25, Mississippi Code of 1972, is brought forward as follows:
57-73-25. (1) A fifty percent (50%) income tax credit shall be granted to any employer (as defined in subsection (4) of this section) sponsoring skills training. The fifty percent (50%) credit shall be granted to employers that participate in employer-sponsored training programs through any community/junior college in the district within which the employer is located or training approved by such community/junior college. The credit is applied to qualified training expenses, which are expenses related to instructors, instructional materials and equipment, and the construction and maintenance of facilities by such employer designated for training purposes which is attributable to training provided through such community/junior college or training approved by such community/junior college. The credits allowed under this section shall only be used by the actual employer qualifying for the credits. The credit shall not exceed fifty percent (50%) of the income tax liability in a tax year and may be carried forward for the five (5) successive years if the amount allowable as credit exceeds the income tax liability in a tax year; however, thereafter, if the amount allowable as a credit exceeds the tax liability, the amount of excess shall not be refundable or carried forward to any other taxable year. The credit authorized under this section shall not exceed Two Thousand Five Hundred Dollars ($2,500.00) per employee during any one (1) year. Nothing in this section shall be interpreted in any manner as to prevent the continuing operation of state-supported university programs.
(2) Employer-sponsored training shall include an evaluation by the local community or junior college that serves the employer to ensure that the training provided is job related and conforms to the definition of "skills training" as hereinafter defined.
(3) Employers shall be certified as eligible for the tax credit by the local community or junior college that serves the employer and the Department of Revenue.
(4) For the purposes of this section:
(a) "Skills training" means any employer-sponsored training by an appropriate community/junior college or training approved by such community/junior college that enhances skills that improve job performance. If the employer provides preemployment training, the portion of the preemployment training that involves skills training shall be eligible for the credit.
(b) "Employer-sponsored training" means training provided by the appropriate community/junior college in the district within which the employer is located or training approved by such community/junior college.
(c) "Employer" means those permanent business enterprises as defined and set out in Section 57-73-21.
(5) The tax credits provided for in this section shall be in addition to all other tax credits heretofore granted by the laws of the state.
(6) A community/junior college may commit to provide employer-sponsored skills training programs for an employer for a multiple number of years, not to exceed five (5) years.
(7) The Mississippi Community College Board shall make a report to the Legislature by January 30 of each year summarizing the number of participants, the junior or community college through which the training was offered and the type training offered.
(8) This section shall stand repealed from and after July 1, 2016.
SECTION 6. Section 57-89-7, Mississippi Code of 1972, is brought forward as follows:
57-89-7. (1) (a) A motion picture production company that expends at least Fifty Thousand Dollars ($50,000.00) in base investment, payroll and/or fringes, in the state shall be entitled to a rebate of a portion of the base investment made by the motion picture production company. Subject to the provisions of this section, the amount of the rebate shall be equal to twenty-five percent (25%) of the base investment made by the motion picture production company.
(b) In addition to the rebates authorized under paragraphs (a), (c) and (d) of this subsection, a motion picture production company may receive a rebate equal to twenty-five percent (25%) of payroll and fringes paid for any employee who is not a resident and whose wages are subject to the Mississippi Income Tax Withholding Law of 1968. However, if the payroll and fringes paid for an employee exceeds Five Million Dollars ($5,000,000.00), then the rebate is authorized only for the first Five Million Dollars ($5,000,000.00) of such payroll and fringes.
(c) In addition to the rebates authorized under paragraphs (a), (b) and (d) of this subsection, a motion picture production company may receive a rebate equal to thirty percent (30%) of payroll and fringes paid for any employee who is a resident and whose wages are subject to the Mississippi Income Tax Withholding Law of 1968. However, if the payroll and fringes paid for an employee exceeds Five Million Dollars ($5,000,000.00), then the rebate is authorized only for the first Five Million Dollars ($5,000,000.00) of such payroll and fringes.
(d) In addition to the rebates authorized in paragraphs (a), (b) and (c) of this subsection, a motion picture production company may receive an additional rebate equal to five percent (5%) of the payroll and fringes paid for any employee who is an honorably discharged veteran of the United States Armed Forces and whose wages are subject to the Mississippi Income Tax Withholding Law of 1968.
(e) If a motion picture has physical production activities and/or post-production activities both inside and outside the state, then the motion picture production company shall be required to provide an itemized accounting for each employee regarding such activities inside and outside the state for the purposes of proration of eligible payroll based on the percentage of activities performed in the state.
(f) The total amount of rebates authorized for a motion picture project shall not exceed Ten Million Dollars ($10,000,000.00) in the aggregate.
(g) The total amount of rebates authorized in any fiscal year shall not exceed Twenty Million Dollars ($20,000,000.00) in the aggregate.
(2) A motion picture production company desiring a rebate under this section must submit a rebate request to the Department of Revenue upon completion of the project. The request must include a detailed accounting of the base investment made by the motion picture production company and any other information required by the Department of Revenue. Rebates made by the Department of Revenue under this section shall be made from current income tax collections. The Department of Revenue shall not approve any application for a rebate under subsection (1)(b) of this section after July 1, 2016.
(3) The Department of Revenue shall have all powers necessary to implement and administer the provisions of this section, and the Department of Revenue shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section.
(4) The State Auditor may conduct performance and compliance audits under this chapter according to Section 7-7-211(o) and may bill the oversight agency.
SECTION 7. This act shall take effect and be in force from and after July 1, 2016, and shall be repealed from and after June 30, 2016.