MS HB672

Allows owners, members, partners, or shareholders of electing pass-through entities to carry forward excess tax credits for five consecutive years from the close of the taxable year in which the credit was originally allowed

Maintains existing provisions that permit partnerships, S corporations, and similar pass-through entities to elect taxation at the entity level rather than individual owner level for state income tax purposes

Election or revocation of pass-through entity status requires approval by the governing body and owners holding more than 50% voting control, submitted by the 15th day of the third month after the taxable year closes

Individual owners receive a credit against state income taxes equal to their pro rata share of taxes paid by the electing pass-through entity

Effective date is retroactive to January 1, 2022