HB 1528 Summary

• Creates the Mississippi Small Business Investment Company Act to provide insurance premium tax credits for insurers investing designated capital in certified small business investment companies that invest in qualified Mississippi businesses.

• Establishes a $50,000,000 aggregate tax credit cap divided into a primary pool and secondary pool ($3,500,000), with credits equal to 80% of designated capital claimed in 16% annual increments from 2014-2018.

• Requires certified investment companies to invest at least 50% of designated capital within 2 years and 85% within 4 years in qualified businesses (independently owned, with no more than 100 employees, primarily Mississippi-based and -operated).

• Imposes recapture provisions including full credit disallowance if company is decertified within 2 years of allocation, partial disallowance for decertification within 4 years, and pro-rata recapture based on job creation shortfalls (one job at 125% state average wage required per $50,000 of credit claimed).

• Amends Section 27-15-129 to exclude investments receiving credits under this act from the existing Mississippi investment tax reduction, preventing double benefits.