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MS HB497

Bill

Status

Failed

2/27/2019

Primary Sponsor

Tom Miles

Click for details

Origin

House of Representatives

2019 Regular Session

AI Summary

  • Small business enterprises (50 or fewer employees) in Tier Three areas receive a 10% payroll tax credit, Tier Two areas receive 5%, and Tier One areas receive 2.5% for net new full-time jobs (35+ hours per week).
  • Credit applies for five years (years 2-6 after job creation) and requires at least 10% employment growth compared to the prior year; businesses must maintain the 10% increase threshold annually or lose the credit for that year.
  • Unused tax credits may be carried forward for five years from the close of the tax year when jobs were created, but annual credit use cannot exceed 50% of the taxpayer's state income tax liability.
  • Sales, mergers, or relocations do not create new eligibility, though unused credits may transfer to a successor entity; businesses in hazardous waste industries are ineligible.
  • Commissioner of Revenue may extend the credit period by up to two years for small businesses in Governor-declared disaster areas unable to maintain required employment levels.

Legislative Description

Income tax; authorize a credit for certain small businesses that create new jobs.

Last Action

Died In Committee

2/27/2019

Committee Referrals

Ways and Means1/15/2019

Full Bill Text

No bill text available