Senate Bill 2586

AN ACT TO PROVIDE AN INCOME TAX DEDUCTION FOR CERTAIN RETROFITTING OR UPGRADES TO HOMES LOCATED IN THE COASTAL AREA OF MISSISSIPPI; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) An individual Mississippi taxpayer, whose primary or secondary residence is located in the Coastal Area of Mississippi, defined as Hancock, Harrison, Jackson, Stone and Pearl River Counties, shall be allowed a deduction from gross income, regardless of whether the taxpayer itemizes his or her income tax deductions, in calculating the income tax imposed under Section 27-7-5, for certain retrofit costs as described in this section. The deduction shall be allowed for the costs actually incurred by the taxpayer to retrofit a structure qualifying as a primary or secondary residence of a taxpayer with those fortification measures defined in subsection (3) of this section to make the residence more resistant to loss due to a hurricane, tornado or other catastrophic windstorm event.

(2) In order to qualify for the state income tax deduction allowed under this section, the costs may not include ordinary repair or replacement of existing items, and shall be associated with those fortification measures defined in subsection (3) of this section, designed to increase the resistance of the residence to hurricane, tornado or catastrophic windstorm event damage. A taxpayer claiming the deduction shall receive certification, as prescribed by subsection (4) of this section, that the fortification measures were implemented and costs were incurred, and shall provide the certification upon request of the Department of Revenue to prove the taxpayer is entitled to the deduction.

(3) To qualify for the deduction provided under this section, an insurable property shall be retrofitted as defined in the Fortified Existing Living requirements as may from time to time be adopted by the Institute for Business and Home Safety, or other mitigation program which may be approved by the Commissioner of Insurance.

(4) An insurable property shall be certified as conforming to Fortified Existing Living requirements only after inspection and certification by an Institute for Business and Home Safety certified evaluator. Certification of conformity of an insurable property with the other mitigation program shall be made only by a certified or licensed building evaluator as defined by rules and regulations promulgated jointly by the Mississippi Windstorm Mitigation Coordinating Council and the Commissioner of Insurance.

(5) The aggregate tax deduction allowed under this section for all taxable years beginning with the 2013 tax year shall not exceed the lesser of the following:

(a) Fifty percent (50%) of the retrofitting cost incurred; or

(b) Six Thousand Dollars ($6,000.00).

(6) The cost of items that otherwise qualify for the deduction that are purchased with any available grant funds are not eligible for this deduction if the grants are not included in the income of the taxpayer.

(7) The Mississippi Windstorm Mitigation Coordinating Council and the Commissioner of Insurance shall jointly promulgate rules and regulations as required by subsections (3) and (4) of this section.

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, 2017.