MS HB1663

Allows licensed residential builders to claim an income tax credit for sales tax paid on component materials used to construct new single-family, owner-occupied homes in Hancock, Harrison, Jackson, Pearl River, Stone, and George Counties.

Credit amount is calculated by multiplying total construction costs (excluding land, insurance, and similar expenses) by 60%, then multiplying that product by 7%.

Limits annual credit claims to the taxpayer's total tax liability minus other allowable credits, with unused portions carried forward for up to five succeeding tax years.

Prohibits taxpayers from claiming as a deduction any payment amount applied toward the tax credit.

Takes effect July 1, 2012.