MS SB2871

Creates the Mississippi Housing Tax Credit equal to the federal housing tax credit (Section 42 of the Internal Revenue Code) for qualified low-income housing projects placed in service between January 1, 2021 and December 31, 2030

Qualified projects must have restricted rents not exceeding 30% of income, with either 40% of units occupied by residents at 60% or less of median income, or 20% of units occupied by residents at 50% or less of median income

Tax credit can be applied against Mississippi income taxes, corporate license fees, and insurance premium taxes, with unused credits carried forward for up to five years

Mississippi Development Authority must issue eligibility statements and require reports demonstrating how the state credit will benefit tenants through reduced rent or why the credit is necessary to undertake the project

Recapture provisions mirror federal requirements, requiring proportional state credit recapture if federal housing tax credits are recaptured