MISSISSIPPI LEGISLATURE
2021 Regular Session
To: Housing; Finance
By: Senator(s) Blackmon
AN ACT ENTITLED THE "MISSISSIPPI WORKFORCE AND SENIOR AFFORDABLE HOUSING ACT"; TO PROVIDE FOR A MISSISSIPPI HOUSING TAX CREDIT EQUAL TO THE FEDERAL HOUSING TAX CREDIT WITH RESPECT TO QUALIFIED HOUSING PROJECTS PLACED IN SERVICE AFTER JANUARY 1, 2021; TO DEFINE QUALIFIED PROJECTS IN TERMS OF RESTRICTED RENT AMOUNTS AND MEDIAN INCOME LIMITS ON PERSONS OCCUPYING THE UNITS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) This act may be cited as the "Mississippi Workforce and Senior Affordable Housing Act."
(2) As used in this section:
(a) "Eligibility statement" means a statement authorized and issued by the Mississippi Development Authority certifying that a given project qualifies for the Mississippi housing tax credit.
(b) "Federal housing tax credit" means the federal tax credit as provided in Section 42 of the Internal Revenue Code of 1986, as amended.
(c) "Median income" means those incomes that are determined by the federal Department of Housing and Urban Development guidelines and adjusted for family size.
(d) "Project" means a housing project that has restricted rents that do not exceed thirty percent (30%) of income for at least forty percent (40%) of its units occupied by persons or families having incomes of sixty percent (60%) or less of the median income, or at least twenty percent (20%) of the units occupied by persons or families having incomes of fifty percent (50%) or less of the median income.
(e) "Qualified project" means a qualified low-income building as that term is defined in Section 42 of the Internal Revenue Code of 1986, as amended, that is located in Mississippi and receives approval for tax credits from the Mississippi Development Authority provided pursuant to this section.
(f) "Taxpayer" means a sole proprietor, partnership, corporation of any classification, limited liability company, or association taxable as a business entity that is subject to Mississippi taxes.
(2) (a) A state tax credit pursuant to this section may be claimed against Mississippi income taxes, corporate license fees and insurance premium taxes imposed pursuant to law, to be termed the Mississippi housing tax credit, and is allowed with respect to each qualified project placed in service after January 1, 2021, and before December 31, 2030, in an amount equal to the federal housing tax credit allowed with respect to such qualified project.
(b) If under Section 42 of the Internal Revenue Code of 1986, as amended, a portion of any federal housing tax credit taken on a project is required to be recaptured, the taxpayer claiming any state tax credit with respect to such project also is required to recapture a portion of any state tax credit authorized by this section. The state recapture amount is equal to the proportion of the state tax credit claimed by the taxpayer that equals the proportion the federal recapture amount bears to the original federal housing tax credit amount subject to recapture.
(c) In the event that recapture of any Mississippi housing tax credit is required, any amended return submitted to the Department of Revenue, as provided in this section, shall include the proportion of the state tax credit required to be recaptured, the identity of each taxpayer subject to the recapture, and the amount of tax credit previously allocated to such taxpayer.
(d) The total amount of the tax credit allowed by this section for a taxable year may not exceed the taxpayer's income tax liability. Any unused tax credit may be carried forward to apply to the taxpayer's next five (5) succeeding years' tax liability. The taxpayer may not apply the credit against any prior tax years' tax liability.
(e) The tax credit allowed by this section, and any recaptured tax credit, must be allocated among some or all of the partners, members, or shareholders of the entity owning the project in any manner agreed to by such persons, regardless of whether such persons are allocated or allowed any portion of the federal housing tax credit with respect to the project.
(3) (a) The Mississippi Development Authority shall promulgate rules establishing criteria upon which the eligibility statements are issued which must include consideration of evidence of local support for the project. The eligibility statement must specify the amount of the Mississippi housing tax credit allowed.
(b) The Mississippi Development Authority may not issue an eligibility statement until the taxpayer provides a report to the authority detailing how the state credit authorized by this section will benefit the tenants of the project, once placed in service, including, but not limited to, reduced rent, or why the state credit authorized by this section is necessary to undertake the project.
(4) The Mississippi Department of Revenue, in consultation with the Mississippi Home Corporation and the Mississippi Development Authority, may adopt rules and policies necessary to implement and administer the provisions of this section.
SECTION 2. This act shall take effect and be in force from and after July 1, 2021.