MS SB2430

Increases the income tax credit for ad valorem taxes paid on inventory held for resale by manufacturers, distributors, wholesale and retail merchants from $5,000 to $10,000 per location starting in tax year 2012.

Credit is limited to the lesser of the increased amount or the actual income taxes due to Mississippi attributable to each location where inventory is held.

Credit may only be claimed in the year ad valorem taxes are paid and applies to taxes paid to counties, municipalities, school districts, levee districts, and other state or local taxing authorities.

Ad valorem taxes applied toward the tax credit cannot be deducted as a separate deduction for state income tax purposes.

Effective January 1, 2012.