MS HB575

Establishes "cultural product districts" designated by local governments to revitalize communities through cultural activity hubs, including affordable artist housing and workspace, with guidelines developed by the Division of Tourism of the Mississippi Development Authority.

Creates individual income tax credits up to $25,000 per owner-occupied residential or mixed-use structure rehabilitated in a district, with credit percentages ranging from 10-25% based on adjusted gross income and rehabilitation costs exceeding $20,000.

Provides income and corporation franchise tax credits up to 25% of rehabilitation costs for historic nonresidential or rental properties in districts, with a $5,000,000 aggregate cap per taxpayer and allowance for 5-year carryforward or sale of unused credits.

Exempts sales of original, one-of-a-kind works of art sold from established locations within cultural product districts from state sales and use taxes.

Requires local governments and the Division of Tourism to report biannually to the legislature on the tax exemption's impact, including tax-exempt art sales and community effects, beginning January 1, 2013.