MS HB414

Phases out the corporation franchise tax for businesses classified as manufacturers under Internal Revenue Service Principal Business or Professional Activity Codes and primarily operating as manufacturers in Mississippi, beginning January 1, 2017.

Reduces the franchise tax rate for qualifying manufacturers from $2.50 per $1,000 of capital value to $1.75 per $1,000 (2017-2018), then $1.00 per $1,000 (2018-2019), then $0.50 per $1,000 (2019-2020).

Completely exempts qualifying manufacturers from the corporation franchise tax for tax years beginning January 1, 2020 and thereafter.

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

Takes effect July 1, 2016.