Bill Text: MS SB2832 | 2021 | Regular Session | Enrolled
Bill Title: Upholstered household furniture manufacturing job tax credit; extend repealer from 2022 to 2026.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2021-04-09 - Approved by Governor [SB2832 Detail]
Download: Mississippi-2021-SB2832-Enrolled.html
MISSISSIPPI LEGISLATURE
2021 Regular Session
To: Finance
By: Senator(s) Harkins
Senate Bill 2832
(As Sent to Governor)
AN ACT TO AMEND SECTION 27-7-22.36, MISSISSIPPI CODE OF 1972, TO EXTEND THE REPEAL DATE OF THE UPHOLSTERED HOUSEHOLD FURNITURE MANUFACTURING JOB TAX CREDIT FROM JANUARY 1, 2022, TO JANUARY 1, 2026; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-7-22.36, Mississippi Code of 1972, is amended as follows:
27-7-22.36. (1) As used in this section:
(a) "Full-time
employee" means an employee * * * who works at least thirty-five
(35) hours per week.
(b) "New cut and sew job" means a job in which the employee cuts and sews upholstery for upholstered household furniture and which job did not exist in this state before January 1, 2010.
(2) Any enterprise owning
or operating an upholstered household furniture manufacturing facility is
allowed a job tax credit for taxes imposed by this chapter equal to Two
Thousand Dollars ($2,000.00) annually for each full-time employee employed in a
new cut and sew job for a period of five (5) years from the date the credit
commences. The credit shall commence on the date selected by the enterprise.
For the year in which the commencement date occurs, the credit will be
determined based on the monthly average number of full-time employees employed
in new cut and sew jobs subject to the Mississippi income tax withholding * * *
who are employed by the enterprise. For each year thereafter, the
number of new cut and sew jobs shall be determined by comparing the monthly
average number of full-time employees employed in new cut and sew jobs subject
to the Mississippi income tax withholding for the taxable year with the
corresponding period of the prior taxable year. The Department of Revenue
shall verify that the jobs claimed by enterprises to obtain the credit meet the
definition of the term "new cut and sew job." The Department of
Revenue shall adjust the credit allowed each year for employment fluctuations.
(3) The credit that may be used each year shall be limited to an amount not greater than the total state income tax liability of the enterprise. 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.
(4) The tax credits provided for in this section shall be in lieu of the tax credits provided for in Section 57-73-21 and any enterprise using the tax credit authorized in this section shall not use the tax credit authorized in Section 57-73-21.
(5) Any taxpayer who is
eligible for the credit authorized in this section prior to January 1, * * * 2026, shall be eligible for the
credit authorized in this section, notwithstanding the repeal of this section,
and shall be allowed to carry forward the credit after January 1, * * * 2026, as provided for in
subsection (3) of this section.
(6) This section shall be
repealed from and after January 1, * * * 2026.
SECTION 2. This act shall take effect and be in force from and after July 1, 2021.
