MS HB288

Phases out Mississippi's state income tax on resident corporations over a five-year period from 2011 through 2015.

For 2011-2014, gradually reduces corporate tax rates across three income brackets: the 0-$5,000 bracket decreases from 3% to 0.6%, the $5,000-$10,000 bracket from 4% to 0.8%, and income over $10,000 from 5% to 1%.

Eliminates all state income tax on resident corporations effective January 1, 2015.

S corporations remain exempt from state income tax throughout the phase-out period.

Contains transition rules for corporations with fiscal years spanning multiple calendar years to calculate tax using a proportional method based on months in each calendar year.