House Bill 1684 Summary

• Authorizes a 30% income tax credit for costs of wood energy products equipment purchased by taxpayers engaged in wood energy production, capped at $10 million per taxable year.

• Requires taxpayers to own a qualified wood energy products and forest maintenance project meeting criteria including a minimum $100 million investment, construction commencement by January 1, 2022, and creation of at least 75 new full-time permanent employees earning an average of $60,000 annually.

• Permits unused tax credits to be carried forward indefinitely to future taxable years and allows taxpayers to sell or transfer unused credits one time, with notification requirements to the Department of Revenue and Mississippi Development Authority.

• Requires an incentive agreement with the Mississippi Development Authority that includes performance criteria and clawback provisions, with a test period of 7 to 15 years to ensure the project maintains a positive cost-benefit analysis and meets job creation and investment targets.

• Effective January 1, 2022, and does not affect any tax claims or assessments accrued before the effective date.