Senate Bill 3019

AN ACT TO CREATE A NEW SECTION IN TITLE 27, CHAPTER 7, MISSISSIPPI CODE OF 1972, TO EXEMPT SMALL BUSINESSES THAT APPLIED FOR BUT DID NOT RECEIVE PAYCHECK PROTECTION PROGRAM LOANS FROM THE INCOME TAX FOR TAXABLE YEARS 2020 AND 2021; TO EXEMPT SMALL BUSINESSES THAT APPLIED FOR BUT DID NOT RECEIVE PAYCHECK PROTECTION PROGRAM LOANS FROM THE FRANCHISE TAX FOR TAXABLE YEARS 2020 AND 2021; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) For purposes of this section the following terms shall have the following meanings:

(a) "COVID-19" means the Coronavirus Disease 2019.

(b) "PPP" means the Paycheck Protection Program of the United States Small Business Administration.

(d) "Small business" is an entity that meets the eligibility requirements set out by the SBA for First Draw PPP Loans, namely, an entity affected by COVID-19 and that is:

(i) A sole proprietor, independent contractor or self-employed person;

(ii) Any small business concern that meets SBA's size standards, either the industry size standard or the alternative size standard;

(iii) Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or tribal business concern under Section 31(b)(2)(C) of the Small Business Act that has five hundred (500) employees or, if it has more than five hundred (500) employees, meets the SBA industry size standard; or

(iv) Any business with a NAICS code beginning with 72 (Accommodations and Food Services) that has more than one (1) physical location and employs fewer than five hundred (500) employees per location.

(2) A small business that applied for a PPP loan by the application deadline of March 31, 2021, but did not receive a loan shall not be subject to the tax levied under this chapter for taxable years 2020 and 2021.

SECTION 2. (1) For purposes of this section the following terms shall have the following meanings:

(a) "COVID-19" means the Coronavirus Disease 2019.

(b) "PPP" means the Paycheck Protection Program of the United States Small Business Administration.

(d) "Small business" is an entity that meets the eligibility requirements set out by the SBA for First Draw PPP Loans, namely, an entity affected by COVID-19 and that is:

(i) A sole proprietor, independent contractor or self-employed person;

(ii) Any small business concern that meets SBA's size standards, either the industry size standard or the alternative size standard;

(iv) Any business with a NAICS code beginning with 72 (Accommodations and Food Services) that has more than one (1) physical location and employs fewer than five hundred (500) employees per location.

(2) A small business that applied for a PPP loan by the application deadline of March 31, 2021, but did not receive a loan shall not be subject to the tax levied under Title 27, Chapter 13, Mississippi Code of 1972, for taxable years 2020 and 2021.

SECTION 3. Section 1 of this act shall be codified in Title 27, Chapter 7, Mississippi Code of 1972.

SECTION 4. This act shall take effect and be in force from and after its passage.