Bill Text: MS HB1464 | 2011 | Regular Session | Engrossed
Bill Title: College Private Research Incentive Act; create.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Failed) 2011-03-15 - Died In Committee [HB1464 Detail]
Download: Mississippi-2011-HB1464-Engrossed.html
MISSISSIPPI LEGISLATURE
2011 Regular Session
To: Ways and Means
By: Representative McCoy
House Bill 1464
(As Passed the House)
AN ACT TO PROVIDE AN INCOME TAX AND FRANCHISE TAX CREDIT FOR TAXPAYERS THAT MAKE EXPENDITURES ASSOCIATED WITH THE USE OF TECHNOLOGY, INCLUDING FEES RELATED TO PATENTS, COPYRIGHTS, AND LICENSES, AS WELL AS PAYMENTS MADE PURSUANT TO RESEARCH AGREEMENTS WITH COLLEGES AND RESEARCH CORPORATIONS; TO DEFINE CERTAIN TERMS FOR THE PURPOSES OF THIS ACT; TO PROVIDE FOR THE AMOUNT OF THE CREDIT AUTHORIZED IN THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. This act shall be known and may be cited as the "College Private Research Incentive Act."
SECTION 2. (1) The following words and phrases shall have the meanings ascribed in this section unless the context clearly requires otherwise:
(a) "College" means any college, community college, junior college, or university located in Mississippi and accredited by the Southern Association of Colleges and Schools.
(b) "Commercialization costs" means all expenditures associated with the use of, or obtaining the rights to use, technology, including fees related to patents, copyrights, and licenses; as well as payments made pursuant to a research agreement with any college or research corporation authorized by Section 37-147-15, so long as such corporation is wholly owned by a college and all income or profits of such corporation inure to the benefit of a college.
(c) "License agreement" means a written contract entered into between a taxpayer and a college regarding the rights to use a patent or copyright.
(d) "Research agreement" means a written contract, grant, or cooperative agreement entered into between a taxpayer and a college for the performance of experimental, developmental, or research work. Agreements contemplating research in the social sciences or humanities shall not be considered "research agreements."
(e) "Technology" means the product or intellectual property owned by a college.
(2) (a) (i) Subject to the provisions of subparagraph (ii) of this paragraph, during each taxable year a taxpayer may earn and apply for and, if such application is approved by the Department of Revenue, be granted a credit (hereinafter referred to as a "College Private Research tax credit") which may be applied by the taxpayer against any income tax liability owed by the taxpayer under Section 27-7-1 et seq. and/or franchise tax liability owed by the taxpayer under Section 27-13-1 et seq. The credit shall be equal to seven percent (7%) of the amount of money invested by the taxpayer in commercialization costs.
(ii) A College Private Research tax credit shall be allowed against the income tax and/or franchise tax liability owed by a taxpayer for the taxable year in which the credit is earned as well as the three (3) immediately preceding taxable years. However, the amount of the tax credit applied by a taxpayer in a taxable year shall not exceed the total tax liability of the taxpayer for such taxes for that taxable year reduced by the sum of all other credits allowable to such taxpayer, except credit for tax payments made by or on behalf of the taxpayer. If the tax credit allowed under this section exceeds the total tax liability of the taxpayer for such taxes, then any unused credit may be carried forward by the taxpayer as a credit against subsequent tax liability for a period not to exceed five (5) taxable years.
(b) To qualify for a College Private Research tax credit, the taxpayer must:
(i) Submit an application to the Department of Revenue on a form prescribed by the department;
(ii) Pay an application fee of Two Hundred Dollars ($200); and
(iii) Prove to the satisfaction of the Department of Revenue that the taxpayer has incurred commercialization costs pursuant to a research agreement or license agreement, or any amendment thereto, executed on or after July 1, 2011.
(c) The Department of Revenue may audit an applicant in order to verify the applicant's eligibility for the College Private Research tax credit.
(3) The Department of Revenue shall implement and administer the provisions of this section. The Department of Revenue shall adopt and promulgate such rules and regulations, in compliance with the Mississippi Administrative Procedures Law, as are necessary for the efficient and effective administration of this section in keeping with the purposes for which it is enacted. Such rules shall include provisions for (a) the Department of Revenue to certify the eligibility of an applicant for receipt of the College Private Research tax credit and the qualification of a claimant to claim the credit against income tax and/or franchise tax liability and (b) the presentation of an applicant's eligibility certification and any other documentation required to apply for and earn or claim a credit.
SECTION 2. This act shall take effect and be in force from and after July 1, 2011, and shall stand repealed on June 30, 2011.
