Bill Text: MS HB1545 | 2025 | Regular Session | Introduced
Bill Title: Mississippi Broadband Technology Development Act; revise equipment definition and speed requirements for certain tax credits and exemptions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-01-20 - Referred To Ways and Means [HB1545 Detail]
Download: Mississippi-2025-HB1545-Introduced.html
MISSISSIPPI LEGISLATURE
2025 Regular Session
To: Ways and Means
By: Representative Powell
House Bill 1545
AN ACT TO AMEND SECTION 57-87-5, MISSISSIPPI CODE OF 1972, TO AMEND THE DEFINITION OF "EQUIPMENT USED IN THE DEPLOYMENT OF BROADBAND TECHNOLOGIES" FOR PURPOSES OF THE CREDIT AGAINST INCOME TAX AND CORPORATION FRANCHISE TAX LIABILITY OF TELECOMMUNICATIONS ENTERPRISES FOR CERTAIN INVESTMENTS, AND FOR PURPOSES OF THE AD VALOREM TAX EXEMPTION FOR SUCH EQUIPMENT PLACED IN SERVICE IN A CERTAIN TIME PERIOD; TO AMEND SECTION 57-87-7, MISSISSIPPI CODE OF 1972, TO SPECIFY THE EQUIPMENT PLACED IN SERVICE AFTER JUNE 30, 2025, AND BEFORE JULY 1, 2030, THAT IS ELIGIBLE FOR THE EXEMPTION; TO REQUIRE A TAXPAYER TO SUBMIT A CERTIFIED, SWORN DESCRIPTION OF THE EQUIPMENT TO THE TAX ASSESSOR OF THE COUNTY IN WHICH SUCH EQUIPMENT IS LOCATED, ON OR BEFORE APRIL 1 OF THE FIRST ASSESSMENT YEAR IN WHICH THE EXEMPTION IS BEING CLAIMED; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 57-87-5, Mississippi Code of 1972, is amended as follows:
57-87-5. (1) For purposes
of this * * *
chapter:
(a) "Telecommunications enterprises" shall have the meaning ascribed to such term in Section 57-73-21(14);
(b) "Tier One areas" mean counties designated as Tier One areas pursuant to Section 57-73-21(1);
(c) "Tier Two areas" mean counties designated as Tier Two areas pursuant to Section 57-73-21(1);
(d) "Tier Three areas" mean counties designated as Tier Three areas pursuant to Section 57-73-21(1); and
(e) "Equipment
used in the deployment of broadband technologies" means any equipment
capable of being used for or in connection with the transmission of information
at a rate, prior to taking into account the effects of any signal degradation,
that is not less than * * * thirty-five (35) megabits per
second downlink and three (3) megabits per second uplink for mobile broadband
or that is capable of providing fixed broadband service as defined by Section
77-19-3.
(2) With respect to the
investment in each year by a telecommunications enterprise after June 30, 2003,
and before July 1, * * *
2030, there shall be allowed annually as a credit against the aggregate
tax imposed by Chapters 7 and 13 of Title 27, Mississippi Code of 1972, an
amount equal to:
(a) Five percent (5%) of the cost of equipment used in the deployment of broadband technologies in Tier One areas;
(b) Ten percent (10%) of the cost of equipment used in the deployment of broadband technologies in Tier Two areas; and
(c) Fifteen percent (15%) of the cost of equipment used in the deployment of broadband technologies in Tier Three areas.
(3) Such annual credits shall be allowed commencing with the taxable year in which such property is placed in service and continue for nine (9) consecutive years thereafter. The aggregate credit established by this section taken in any one (1)
tax year shall be limited to an amount not greater than fifty percent (50%) of the taxpayer's tax liabilities under Chapters 7 and 13 of Title 27, Mississippi Code of 1972; however, any tax credit claimed under this section, but not used in any taxable year, may be carried forward for ten (10) consecutive years from the close of the tax year in which the credits were earned.
(4) The maximum aggregate amount of credits that may be claimed under this section shall not exceed the original investment made by a telecommunications enterprise in the qualifying equipment used in the deployment of broadband technologies.
(5) For purposes of this section, the tier in which broadband technology is deployed shall be determined in the year in which such technology is deployed in a county and such tier shall not change if the county is later designated in another tier.
(6) There will be no credit allowed under this section if the equipment used in the deployment of broadband technologies was paid for, or its cost was reimbursed by, funds made available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
SECTION 2. Section 57-87-7, Mississippi Code of 1972, is amended as follows:
57-87-7. (1)
Equipment used in the deployment of broadband technologies by a
telecommunications enterprise * * *
that is placed in service after June 30, 2003, and before July 1, 2025, shall
be exempt from ad valorem taxation for a period of ten (10) years after the
date such equipment is placed in service. * * *
(2) Equipment used in the deployment of fixed broadband technologies by a telecommunications enterprise that is placed in service after June 30, 2025, and before July 1, 2030, and capable of transmission at average speeds per customer at least equal to the Federal Communications Commission's (FCC's) fixed broadband speed benchmarks in both directions, shall be exempt from ad valorem taxation for a period of ten (10) years after the date such equipment is placed in service, or for such period the equipment remains capable of speeds at least equal to the FCC's then-current fixed broadband speed benchmarks in both directions, whichever period is less.
(3) Equipment used in the deployment of mobile broadband technologies by a telecommunications enterprise that is placed in service after June 30, 2025, and before July 1, 2030, and capable of transmission at average speeds not less than thirty-five (35) megabits per second downlink and three (3) megabits per second uplink, shall be exempt from ad valorem taxation for a period of five (5) years after the date such equipment is placed in service.
(4) A taxpayer seeking an exemption for equipment under this section shall submit a certified, sworn description of such equipment, including transmission speeds, to the tax assessor of the county in which such equipment is located, on or before April 1 of the first assessment year in which the exemption is being claimed.
SECTION 3. This act shall take effect and be in force from and after January 1, 2025.
