MS SB2485

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, 2022, and December 31, 2031

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

Tax credits 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 applicants to demonstrate how the credit will benefit tenants through reduced rent or why the credit is necessary for the project

Recapture provisions mirror federal requirements, requiring proportional return of state credits if federal credits are recaptured