MS HB1608

Creates income tax credits for small businesses (defined as enterprises with no more than 100 employees) that increase employment by at least 10 percent with new full-time jobs (35+ hours per week).

Establishes tiered credit rates based on county economic designation: 10% of payroll in Tier Three areas, 5% in Tier Two areas, and 2.5% in Tier One areas, applicable for five years beginning in year two after job creation.

Allows unused tax credits to be carried forward for five years from the close of the taxable year in which jobs were created, with an annual limitation of 50% of the taxpayer's state income tax liability.

Permits the Commissioner of Revenue to extend the five-year credit period by up to two years if a business is in a declared disaster area and unable to maintain required employment levels.

Prohibits eligibility for businesses involved in transportation, handling, storage, processing or disposal of hazardous waste, and requires businesses to submit applications to the Department of Revenue.