House Bill 578

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR CERTAIN TAXPAYERS THAT EMPLOY PERSONS WHO HAVE BEEN RELEASED FROM INCARCERATION FOR CONVICTION OF A MISDEMEANOR OR FOR CONVICTION OF A FELONY OFFENSE FOR A NONVIOLENT CRIME; TO PROVIDE THE AMOUNT OF THE TAX CREDIT; TO LIMIT THE AMOUNT OF THE TAX CREDIT THAT MAY BE CLAIMED IN A TAXABLE YEAR; 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 has been released from incarceration for conviction of a misdemeanor and/or for conviction of a felony offense for a nonviolent crime shall be allowed a credit against the taxes imposed under this chapter. The tax credit authorized in this section shall be available only to a taxpayer who is a business enterprise engaged in commercial, industrial or professional activities and operating as a corporation, limited liability company, partnership or sole proprietorship. The credit shall be for an amount equal to One Thousand Dollars ($1,000.00) for each person so employed during a taxable year. In order to be eligible to claim a tax credit for an employee, the taxpayer must employ the employee for at least nine (9) months during the taxable year for which the credit is claimed. The amount of credit that may be utilized by a taxpayer in a taxable year shall not exceed the total tax liability of the taxpayer for the taxes imposed under this chapter for the taxable year. 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. For the purposes of this section, the term "nonviolent crime" means and has the same definition as that term has in Section 47-7-3.

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

SECTION 2. Section 1 of this act shall be codified as a new section in Chapter 7, Title 27, Mississippi Code of 1972.

SECTION 3. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.

SECTION 4. This act shall take effect and be in force from and after January 1, 2025.