MISSISSIPPI LEGISLATURE
2024 Regular Session
To: Finance
By: Senator(s) Horhn
AN ACT TO ENACT THE MISSISSIPPI AFFORDABLE HOUSING TAX CREDIT ACT; TO PROVIDE A TAX CREDIT AGAINST MISSISSIPPI STATE INCOME TAX, FRANCHISE TAX OR INSURANCE PREMIUM TAX LIABILITY FOR ELIGIBLE INVESTORS IN LOW-INCOME AFFORDABLE HOUSE PROJECTS APPROVED BY THE MISSISSIPPI HOME CORPORATION; TO ESTABLISH STANDARDS FOR QUALIFIED PROJECTS AND THE TAX CREDIT TO BE ADMINISTERED BY THE MISSISSIPPI HOME CORPORATION; TO PROVIDE THAT STATE CREDITS SHALL NOT EXCEED FEDERAL LOW-INCOME HOUSING TAX CREDITS AND TO ESTABLISH A STATE CAP FOR THE CREDITS; TO PROVIDE FOR THE CARRYOVER OF UNUSED CREDITS; TO REQUIRE REVIEW OF THE PROGRAM; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) This section shall be known and may be cited as the "Mississippi Affordable Housing Tax Credit Act."
(2) As used in this section:
(a) "Eligibility statement" means a statement authorized and issued by the Mississippi Home Corporation certifying that a given project qualifies for the Mississippi Affordable Housing Tax Credit authorized by this section. The Mississippi Home Corporation shall promulgate rules establishing criteria upon which the eligibility statements will be issued. The eligibility statement shall specify the amount of Mississippi Affordable Housing Tax Credits certificated or allocated to a qualified project. The Mississippi Home Corporation shall only authorize the tax credits created by this section to qualified projects which are placed in service after July 1, 2024, but which shall not be used to reduce tax liability accruing prior to January 1, 2024.
(b) "Federal low-income housing tax credit" means the federal tax credit as provided in Section 42 of the Internal Revenue Code of 1986, as amended.
(c) "Mississippi Affordable Housing Tax Credit" means the tax credit created by this section.
(d) "Mississippi Home Corporation" means the public housing corporation created in Section 43-33-704 et seq., Mississippi Code of 1972.
(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.
(f) "Taxpayer" means a person, firm or corporation subject to state income tax, franchise tax or insurance premium tax.
(3) For qualified projects placed in service after July 1, 2024, the amount of state tax credits created by this section which are certificated or allocated to a project shall not exceed that of the federal low-income housing tax credits for a qualified project. The total Mississippi Affordable Housing Tax Credits certificated or allocated to all qualified projects shall not exceed Four Million Dollars ($4,000,000.00) per year. For purposes of this section, the "credit period" shall mean the period of ten (10) taxable years and "placed in service" shall have the same meaning as is applicable under the federal credit program.
(4) A taxpayer owning an interest in an investment in a qualified project shall be allowed Mississippi Affordable Housing Tax Credits under this section for tax years beginning on or after January 1, 2024, if the Mississippi Home Corporation issues an eligibility statement for such project, which tax credit shall be certificated or allocated among some or all of the partners, members or shareholders of the taxpayer owning such interest in any manner agreed to by such partners, members or shareholders. Such taxpayer may assign its interest in the investment.
(5) The credit authorized by this section shall not be used to reduce the tax liability of the taxpayer to less than zero ($0.00).
(6) Any credit claimed but not used in a taxable year may be carried forward five (5) subsequent taxable years.
(7) The owner of a qualified project eligible for the credit authorized by this section shall submit, at the time of filing the tax return with the Department of Revenue, an eligibility statement from the Mississippi Home Corporation. In the case of failure to attach the eligibility statement, no credit under this section shall be allowed with respect to such project for that year until required documents are provided to the Department of Revenue.
(8) If under Section 42 of the Internal Revenue Code of 1986, as amended, a portion of any federal low-income housing credits taken on a qualified project is required to be recaptured during the first ten (10) years after a project is placed in service, the taxpayer claiming Mississippi Affordable Housing Tax Credits with respect to such project shall also be required to recapture a portion of such credits. The amount of Mississippi Affordable Housing Tax Credits subject to recapture shall be proportionally equal to the amount of federal low-income housing credits subject to recapture.
(9) The Mississippi Home Corporation or the Department of Revenue may require the filing of additional documentation necessary to determine the accuracy of a tax credit claimed.
(10) This section shall undergo a review every five (5) years by a committee of nine (9) persons, to be appointed three (3) persons each by the Governor, Lieutenant Governor and the Speaker of the House of Representatives.
SECTION 2. This act shall take effect and be in force from and after July 1, 2024.