MS SB2099

Amends Mississippi income tax law to define "valid business purpose" for deducting intangible expenses and interest paid to related members as business activity that improves the taxpayer's economic position apart from tax effects.

Requires taxpayers to add back otherwise deductible interest and intangible expenses paid to related members unless the related member paid those amounts to unrelated parties or the transaction has valid business purpose, economic substance, and arm's-length terms.

Prohibits deductions for interest and intangible expenses to related members primarily engaged in acquiring, using, maintaining, or selling intangible property, and requires fair market compensation if development costs for the intangible property were shared.

Prevents double-counting of interest and intangible expenses by limiting add-backs to amounts paid only once to related members.

Effective January 1, 2013.