MS HB1551

Phases out the corporation franchise tax for manufacturers classified under IRS Principal Business or Professional Activity Codes and primarily operating as manufacturers in Mississippi, effective January 1, 2015.

Reduces the tax rate for qualifying manufacturers from $2.50 per $1,000 of capital value to $1.75 per $1,000 (2015-2016), then to $1.00 per $1,000 (2016-2017), then to $0.50 per $1,000 (2017-2018).

Completely eliminates the franchise tax for qualifying manufacturers for tax years beginning January 1, 2018 and thereafter.

Applies the phase-out to both domestic corporations under Section 27-13-5 and foreign corporations under Section 27-13-7.

Takes effect July 1, 2014.