Bill Text: MS HB1611 | 2017 | Regular Session | Engrossed
Bill Title: Income/corporation franchise tax; increase amount of credits authorized for telecommunications enterprises providing broadband service to IHL.
Spectrum: Bipartisan Bill
Status: (Failed) 2017-03-14 - Died In Committee [HB1611 Detail]
Download: Mississippi-2017-HB1611-Engrossed.html
MISSISSIPPI LEGISLATURE
2017 Regular Session
To: Ways and Means
By: Representative Lamar
House Bill 1611
(As Passed the House)
AN ACT TO AMEND SECTION 27-111-1, MISSISSIPPI CODE OF 1972, TO INCREASE THE MAXIMUM TOTAL AMOUNT OF INCOME AND CORPORATION FRANCHISE TAX CREDITS THAT MAY BE ISSUED IN A FISCAL YEAR FOR TELECOMMUNICATION ENTERPRISES THAT HAVE CONTRACTED WITH THE STATE TO PROVIDE BROADBAND TELECOMMUNICATIONS SERVICE TO INSTITUTIONS OF HIGHER LEARNING AND RECEIVED PAYMENT CREDIT VOUCHERS THAT ENTITLE THE TELECOMMUNICATIONS ENTERPRISES TO A CREDIT AGAINST AGGREGATE INCOME TAX AND CORPORATION FRANCHISE TAX; TO EXTEND THE REPEAL DATE OF SUCH SECTION; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-111-1, Mississippi Code of 1972, is amended as follows:
27-111-1. (1) The Governor shall be authorized to issue to a telecommunications enterprise that has contracted with the state to provide broadband telecommunications service to institutions of higher learning, a payment credit voucher in lieu of an equal amount of cash payment pursuant to the terms of the contract for services. The payment credit voucher shall entitle the telecommunications enterprise to a credit against the aggregate tax liabilities imposed on such telecommunications enterprise by Chapters 7 and 13 of Title 27, Mississippi Code of 1972, in an amount that is equal to such payment credit voucher.
(2) The tax credits in lieu of payment shall only be issued if agreed to by the telecommunications enterprise and authorized by the Governor with a signed payment credit voucher.
(3) The total amount of tax credits authorized under this section in any fiscal year through the 2018 fiscal year shall not exceed Two Million Dollars ($2,000,000.00) in the aggregate. From and after July 1, 2018, for any telecommunications enterprise providing such services pursuant to any contract entered into on or after July 1, 2017, the total amount of tax credits authorized under this section in any fiscal year shall not exceed Two Million Five Hundred Ten Thousand Dollars ($2,510,000.00) in the aggregate.
(4) The excess, if any, of the credit allowed by this section over the aggregate tax liabilities imposed against the telecommunications enterprise by Chapters 7 and 13 of Title 27, Mississippi Code of 1972, may be utilized against the aggregate tax liabilities imposed by Chapters 7 and 13 of Title 27, Mississippi Code of 1972, on any related member with respect to the telecommunications enterprise. For purposes of this subsection, the term "related member" shall have the meaning given to such term by Section 27-7-17(2)(a)(iv). If the provider or any related member is unable to utilize the full amount of the credit voucher, then the remaining amount shall constitute an overpayment of the tax imposed by Chapter 7 of Title 27, Mississippi Code of 1972, and shall be refunded to the service provider as provided in Section 27-7-51. Any such overpayment shall be paid by the commissioner not later than ninety (90) days after the filing of the applicable tax return by the service provider. Interest on the overpayment shall be computed under the provisions of Section 27-7-315.
(5) The tax credits authorized by this section shall be used to assist the state in managing its cash flows, shall apply in addition to, and after the application of, all other credits applicable to the service provider and shall not be used in determining any cap placed on any other tax credits applicable to the telecommunications enterprise.
(6) For purposes of this subsection, the term "telecommunications enterprises" shall have the meaning given to such term by Section 57-73-21(14)(b).
(7) This section shall be
repealed from and after July 1, * * * 2028.
SECTION 2. This act shall take effect and be in force from and after July 1, 2017.
