MS HB1677

Establishes a 35% income tax credit for accredited "angel investors" making cash investments of $10,000 to $1,000,000 in qualified Mississippi small businesses, with an annual cap of $250,000 per investor.

Requires businesses to apply to the Mississippi Technology Alliance for designation as "qualified Mississippi small businesses" and meet criteria including principal place of business in Mississippi, fewer than 100 employees, less than $5 million in annual revenues, and involvement in research, development, or manufacturing of innovative technologies.

Restricts qualified businesses from professional services, banking, real estate, insurance, retail, restaurants, oil and gas, and gambling activities.

Limits total tax credit certifications to $5,000,000 annually for fiscal year 2013-2014 and $3,500,000 for the following two fiscal years.

Allows angel investors to transfer or sell unclaimed tax credits to other Mississippi taxpayers once, with notification required to the Department of Revenue within 30 days; credits may be carried forward for five years and includes provisions to recapture credits if qualified businesses relocate from Mississippi.