MS HB1606

Phases out the corporation franchise tax for manufacturers classified under Internal Revenue Service Principal Business or Professional Activity Codes and primarily operating as manufacturers in Mississippi.

Reduces the franchise tax rate for manufacturers from $2.50 per $1,000 of capital value to $1.75 per $1,000 beginning January 1, 2014, then to $1.00 per $1,000 beginning January 1, 2015, then to $0.50 per $1,000 beginning January 1, 2016.

Eliminates the franchise tax entirely for manufacturers beginning January 1, 2017, with no tax levied on capital value used, invested, or employed by qualifying manufacturers.

Applies the phased reduction and elimination to both domestic and foreign corporations operating as manufacturers in Mississippi.

Takes effect July 1, 2013.