MS HB1531

Establishes a 7% income tax credit for taxpayers who make payments for qualified research conducted through written agreements with Mississippi colleges, state governmental entities, or research corporations.

Defines "qualified research" as technological research intended to develop new or improved business components, excluding research on style, cosmetics, adaptation to customer needs, reproduction of existing components, market research, and research funded by grants or other entities.

Allows taxpayers to apply unused credits against future tax liability for up to 5 taxable years if the credit exceeds their current year tax liability.

Requires applicants to submit an application to the Department of Revenue with a $200 fee and prove they incurred research costs under a research agreement executed on or after July 1, 2012.

Effective date is July 1, 2012, with the Department of Revenue responsible for administering the program and adopting necessary rules and regulations.