MS HB1299

Allows permanent business enterprises that qualify for job tax credits under Section 57-73-21 to elect to pass through all or a portion of their tax credits to employees, effective July 1, 2013 through July 1, 2018.

Requires businesses electing to pass credits through to employees to distribute credits equally on a prorated basis to all employees, provide certificates of credit to recipients, and notify the Department of Revenue with specific information including credit amounts and balances.

Changes references from "State Tax Commission" to "Department of Revenue" throughout the job tax credit sections and adjusts credit calculation methods from fixed dollar amounts to percentages of payroll (10% for Tier Three, 5% for Tier Two, 2.5% for Tier One areas).

Limits employee recipients of passed-through credits to using credits only against their personal income tax liability as employees of the qualifying business, with no liability for reductions in credits caused by subsequent business audits or amended returns.

Makes conforming amendments to telecommunications enterprise tax credit sections and adds that employees receiving passed-through credits may carry unused credits forward for five years, subject to applicable income tax liability limitations.