MS HB7

Authorizes an income tax credit for small business enterprises (50 or fewer employees) that increase employment by at least 10 percent, with credit rates varying by county tier: 10 percent in Tier Three areas, 5 percent in Tier Two areas, and 2.5 percent in Tier One areas.

Credits apply to payroll for net new full-time jobs (35+ hours per week) and are available for five years beginning in year two through year six after job creation, with adjustments for employment fluctuations.

Unused tax credits may be carried forward for five years from the close of the tax year in which qualified jobs were created, but credit in any single year is limited to 50 percent of the taxpayer's state income tax liability.

Prohibits credit eligibility for businesses engaged in transportation, handling, storage, processing, or disposal of hazardous waste, and credits cannot be transferred or used by entities other than the qualifying business enterprise.

Allows the Commissioner of Revenue to extend the credit period by up to two years if a business is located in a disaster area and cannot maintain required job levels as a direct result.