Struck = removed from the bill ยท
added = the amendment's new text.
MISSISSIPPISenate LEGISLATUREAmendments REGULARto SESSIONHouse 2025Bill By:No.
Representatives1880 Lamar,TO JohnsonTHE To:CLERK OF THE HOUSE:
WaysTHIS andIS MeansTO HOUSEINFORM BILLYOU NO.THAT THE SENATE HAS ADOPTED THE AMENDMENTS SET OUT BELOW:
1880AMENDMENT ANNO. ACT TO PROVIDE AN INCOME TAX CREDIT FOR A PORTION OF CERTAIN EXPENDITURES MADE BY COMPANIES ENGAGED IN THE PRODUCTION IN MISSISSIPPI OF SCRIPTED OR UNSCRIPTED SERIES, CONTENT OR PILOT EPISODES INTENDED FOR BROADCAST OR STREAMING;
TO1 DEFINEAmend CERTAINby TERMS;striking all after the enacting clause and inserting in lieu thereof the following:
TO ESTABLISH THE AMOUNT OF THE TAX CREDIT;
TO PROVIDE THAT, IF THE AMOUNT OF THE TAX CREDIT CLAIMED BY A PRODUCTION COMPANY EXCEEDS THE AMOUNT OF INCOME TAX LIABILITY OF THE PRODUCTION COMPANY FOR A TAXABLE YEAR, THE PRODUCTION COMPANY MAY CARRY THE EXCESS CREDIT FORWARD FOR TEN YEARS;
TO PROVIDE THAT IN LIEU OF CLAIMING A TAX CREDIT, THE PRODUCTION COMPANY MAY ELECT TO CLAIM A REBATE IN THE AMOUNT OF 75% OF THE AMOUNT IT WOULD BE ELIGIBLE TO CLAIM AS A CREDIT;
TO AMEND SECTIONS 57-89-7 AND 57-89-51, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS ACT;
AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
H.(ii) Personal service corporation retained by a production company to provide persons used directly in the physical production and/or post-production of a television production in the state;
B.
No.
1880 *HR26/R2501.1* ~ OFFICIAL ~ R3/5 25/HR26/R2501.1 PAGE 1 (BS\KW) (ii) Personal service corporation retained by a production company to provide persons used directly in the physical production and/or post-production of a television production in the state;
PAGE 11880 (b) "Fringes" means costs paid by a production company for employee benefits that are not subject to state income tax.
Fringes(c) may"Payroll" include,means butsalary, arewages notor limitedother to,compensation, paymentsincluding byrelated anbenefits employerpaid forto unemploymentemployees insurance,upon Federalwhich InsuranceMississippi Contributionincome Acttax (FICA),is workers'due compensation insurance, pension and welfarehas benefitsbeen andwithheld. health insurance premiums.
(c) "Payroll" means salary, wages or other compensation including related benefits paid to employees upon which Mississippi income tax is due and has been withheld.
The term "production company" shall not mean or include any company owned, affiliated,affiliated or controlled, in whole or in part, by any company or person which is in default on a loan made by the state or a loan guaranteed by the state, or any company or person who has ever declared bankruptcy under which an obligation of the company or H.person to pay or repay public funds or monies was discharged as a part of such bankruptcy.
B.(e) "Qualified expenditures" means the actual expenses incurred and paid in Mississippi by a production company in connection with the production of a state-certified production in the state and which are subject to payroll taxes or any taxes under Chapter 65, Title 27, Mississippi Code of 1972.
No.(f) "Resident" or "resident of Mississippi" means a natural person and, for the purpose of determining eligibility for the tax credit provided by this section, any person domiciled in the State of Mississippi and any other person who maintains a permanent place of abode within the state and spends in the aggregate more than six (6) months of each year within the state.
1880 *HR26/R2501.1* ~ OFFICIAL ~ 25/HR26/R2501.1 PAGE 2(BS\KW) person to pay or repay public funds or monies was discharged as a part of such bankruptcy.
(e) "Qualified expenditures" means the actual expenses incurred and paid in Mississippi by a production company in connection with the production of a state-certified production in the state.
The term "qualified expenditures" includes amounts expended in Mississippi by a production company as per diem and housing allowances in connection with the production of a state-certified production in the state.
The term "qualified expenditures" shall not include payroll.
(f) "Resident" or "resident of Mississippi" means a natural person, and for the purpose of determining eligibility for the tax credit provided by this section, any person domiciled in the State of Mississippi and any other person who maintains a permanent place of abode within the state and spends in the aggregate more than six (6) months of each year within the state.
PAGE 21880 (h) "State-certified production" means a television production approved by the Mississippi Development Authority produced by a production company in the state.
(i) "Television production" means any scripted or unscripted series, content,content or pilot episodes intended for H.broadcast or streaming.
B.
No.
1880 *HR26/R2501.1* ~ OFFICIAL ~ 25/HR26/R2501.1 PAGE 3(BS\KW) broadcast or streaming.
(2) (a) A production company that expends at least Four Million Dollars ($4,000,000.00) in qualified expenditures,expenditures payroll and/or fringes, in the state for the production of a state-certified production in which at least sixty-five percent (65%) of the running time occurs from activities in Mississippi shall be entitled to a credit against the taxes imposed by Section 27-7-5.
The amount of the tax credit shall benot equalexceed to twenty-five percent (25%) of the qualified expenditures made by the production company.company and shall consist of:
(b)(i) InA addition to the tax credits authorized under paragraphs (a), (c) and (d) of this subsection, a production company eligible for the credit provided for in paragraph (a) of this subsection (2), shall be entitled to a credit against the taxes imposed by Section 27-7-5 in an amount equal to twenty percent (20%) of payroll and fringes paid for any employee who is not a resident and whose wages are subject to the Mississippi Income Tax Withholding Law of 1968.1968;
However,however, if the payroll and fringes paid for an employee exceeds Three Million Dollars ($3,000,000.00), then the credit is PAGE 31880 authorized only for the first Three Million Dollars ($3,000,000.00) of such payroll and fringes.fringes;
H.(ii) A credit against the taxes imposed by Section 27-7-5 in an amount equal to thirty percent (30%) of payroll and fringes paid for any employee who is a resident and whose wages are subject to the Mississippi Income Tax Withholding Law of 1968;
B.however, if the payroll and fringes paid for an employee exceeds Three Million Dollars ($3,000,000.00), then the credit is authorized only for the first Three Million Dollars ($3,000,000.00) of such payroll and fringes;
No.and (iii) A credit against the taxes imposed by Section 27-7-5 in an amount equal to twenty-five percent (25%) of qualified expenditures subject to tax under Chapter 65, Title 27, Mississippi Code of 1972;
1880however, *HR26/R2501.1*if ~such OFFICIALexpenditures ~exceed 25/HR26/R2501.1Three PAGEMillion 4(BS\KW)Dollars (c)($3,000,000.00), Inthen addition to the taxcredit creditsis authorized underonly paragraphs (a), (b) and (d) of this subsection, a production company eligible for the creditfirst providedThree forMillion inDollars paragraph($3,000,000.00) (a) of thissuch subsectionexpenditures. (2), shall be entitled to a credit against the taxes imposed by Section 27-7-5 in an amount equal to thirty percent (30%) of payroll and fringes paid for any employee who is a resident and whose wages are subject to the Mississippi Income Tax Withholding Law of 1968.
However,(b) ifQualified theexpenditures payroll and fringes paid for anwhich employeea exceedstax Three Million Dollars ($3,000,000.00), then the credit ismay authorizedbe onlyclaimed forunder thethis firstsection: Three Million Dollars ($3,000,000.00) of such payroll and fringes.
(d)(i) Inmay additionnot tobe theused taxor creditsincluded authorizedfor inthe paragraphspurpose (a), (b) and (c) of thissatisfying subsection,any aminimum productioninvestment companyrequired eligible for the credit provided for in paragraphorder (a)to of this subsection (2), shall be entitledeligible tofor a creditrebate againstunder the taxesMississippi imposedMotion byPicture SectionIncentive 27-7-5Act inor anunder amountSection equal57-89-51, toand five(ii) percentmay (5%)not ofbe theused payrollfor and fringesshall paidnot forbe employees,eligible providedfor thatany atrebate leastauthorized fiftyunder percent (50%) of the employees are residents whose wages are subject to the Mississippi IncomeMotion TaxPicture WithholdingIncentive LawAct ofor 1968under andSection are57-89-51. employed as directors, producers and/or cinematographers for the state-certified production.
(e)PAGE Qualified41880 expenditures,(c) payrollIf a television production has physical production activities and/or fringespost-production foractivities whichboth ainside taxand creditoutside maythe state, then the production company shall be claimedrequired underto thisprovide section:an itemized accounting for each employee regarding such activities inside and outside the state for the purposes of proration of eligible payroll based on the percentage of activities performed in the state.
(d) (i) mayIf notthe beamount usedof orthe includedtax forcredit authorized by this section exceeds the purposetotal state income tax liability of satisfyingthe anyproduction minimumcompany investmentfor requiredthe incredit orderyear, tothe amount that exceeds the total state income tax liability may be eligiblecarried forward for athe rebateten under(10) thesucceeding H.tax years.
B.
No.
1880 *HR26/R2501.1* ~ OFFICIAL ~ 25/HR26/R2501.1 PAGE 5(BS\KW) Mississippi Motion Picture Incentive Act or under Section 57-89-51 and (ii) may not be used for and shall not be eligible for any rebate authorized under the Mississippi Motion Picture Incentive Act or under Section 57-89-51.
(f) If a television production has physical production activities and/or post-production activities both inside and outside the state, then the production company shall be required to provide an itemized accounting for each employee regarding such activities inside and outside the state for the purposes of proration of eligible payroll based on the percentage of activities performed in the state.
(g) (i) If the amount of the tax credit authorized by this section exceeds the total state income tax liability of the production company for the credit year, the amount that exceeds the total state income tax liability may be carried forward for the ten (10) succeeding tax years.
If claiming a credit instead of a rebate, the production company shall claim the credit H.on the income tax return for the tax year for which the credit is certified.
B.(iii) Credits authorized by this section that are earned by a partnership, limited liability company, S corporation or other similar pass-through entity shall be allocated among all PAGE 51880 partners, members or shareholders, respectively, either in proportion to their ownership interest in such entity or as the partners, members or shareholders mutually agree as provided in an executed document.
No.
1880 *HR26/R2501.1* ~ OFFICIAL ~ 25/HR26/R2501.1 PAGE 6(BS\KW) on the income tax return for the tax year for which the credit is certified.
(iii) Credits authorized by this section that are earned by a partnership, limited liability company, S corporation or other similar pass-through entity, shall be allocated among all partners, members or shareholders, respectively, either in proportion to their ownership interest in such entity or as the partners, members or shareholders mutually agree as provided in an executed document.
(h)(e) The total amount of credits and rebates authorized in any fiscal year shall not exceed Forty-two Million Dollars ($42,000,000.00) in the aggregate.
H.(3) A production company desiring a credit under this section must submit a request to the Department of Revenue upon completion of the project.
B.The request must include a detailed accounting of the qualified expenditures made by the production company, the amount of payroll and fringes paid by the production PAGE 61880 company and any other information required by the Department of Revenue.
No.(4) The Department of Revenue shall have all powers necessary to implement and administer the provisions of this section, and the Department of Revenue shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section.
1880 *HR26/R2501.1* ~ OFFICIAL ~ 25/HR26/R2501.1 PAGE 7(BS\KW) (2) A production company desiring a credit under this section must submit a request to the Department of Revenue upon completion of the project.
The request must include a detailed accounting of the qualified expenditures made by the production company, the amount of payroll and fringes paid by the production company and any other information required by the Department of Revenue.
(3) The Department of Revenue shall have all powers necessary to implement and administer the provisions of this section, and the Department of Revenue shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section.
(b) In addition to the rebates authorized under paragraphs (a), (c) and (d) of this subsection, a motion picture production company may receive a rebate equal to twenty-five H.percent (25%) of payroll and fringes paid for any employee who is not a resident and whose wages are subject to the Mississippi Income Tax Withholding Law of 1968.
B.
No.
1880 *HR26/R2501.1* ~ OFFICIAL ~ 25/HR26/R2501.1 PAGE 8(BS\KW) percent (25%) of payroll and fringes paid for any employee who is not a resident and whose wages are subject to the Mississippi Income Tax Withholding Law of 1968.
PAGE 71880 (c) In addition to the rebates authorized under paragraphs (a), (b) and (d) of this subsection, a motion picture production company may receive a rebate equal to thirty percent (30%) of payroll and fringes paid for any employee who is a resident and whose wages are subject to the Mississippi Income Tax Withholding Law of 1968.
(i) may not be used or included for the purpose of satisfying any minimum investment H.required in order to be eligible for a rebate under Section 57-89-51 or under Section 1 of this act and (ii) may not be used for and shall not be eligible for any rebate authorized under Section 57-89-51 or under Section 1 of this act.
B.(f) If a motion picture has physical production activities and/or post-production activities both inside and outside the state, then the motion picture production company PAGE 81880 shall be required to provide an itemized accounting for each employee regarding such activities inside and outside the state for the purposes of proration of eligible payroll based on the percentage of activities performed in the state.
No.
1880 *HR26/R2501.1* ~ OFFICIAL ~ 25/HR26/R2501.1 PAGE 9(BS\KW) required in order to be eligible for a rebate under Section 57-89-51 or under Section 1 of this act and (ii) may not be used for and shall not be eligible for any rebate authorized under Section 57-89-51 or under Section 1 of this act.
(f) If a motion picture has physical production activities and/or post-production activities both inside and outside the state, then the motion picture production company shall be required to provide an itemized accounting for each employee regarding such activities inside and outside the state for the purposes of proration of eligible payroll based on the percentage of activities performed in the state.
The Department of Revenue shall H.not approve any application for a rebate under subsection (1)(b) of this section after July 1, 2017.
B.
No.
1880 *HR26/R2501.1* ~ OFFICIAL ~ 25/HR26/R2501.1 PAGE 10(BS\KW) not approve any application for a rebate under subsection (1)(b) of this section after July 1, 2017.
PAGE 91880 (4) The State Auditor may conduct performance and compliance audits under this article according to Section 7-7-211(o) and may bill the oversight agency.
However, in the case of a production company, or its owner, principal, member, production partner, independent contractor director or producer, or subsidiary company that (i) is H.designated and pre-qualified by the Mississippi Development Authority as Mississippi-based or a Mississippi resident;
B.
No.
1880 *HR26/R2501.1* ~ OFFICIAL ~ 25/HR26/R2501.1 PAGE 11(BS\KW) designated and pre-qualified by the Mississippi Development Authority as Mississippi-based or a Mississippi resident;
and (iii) has engaged in activities related to the production of at least two (2) series in Mississippi during the past ten (10) years, base investment may include payroll and fringes paid for any employee who is not a resident and whose wages are subject to the Mississippi Income Tax PAGE 10880 Withholding Law of 1968, if so requested by the production company.
(ii) Personal service corporation retained by a production company to provide persons used directly in the H.physical production and/or post-production of a series in the state;
B.
No.
1880 *HR26/R2501.1* ~ OFFICIAL ~ 25/HR26/R2501.1 PAGE 12(BS\KW) physical production and/or post-production of a series in the state;
Fringes may include, but are not limited to, payments by an PAGE 11880 employer for unemployment insurance, Federal Insurance Contribution Act (FICA), workers' compensation insurance, pension and welfare benefits and health insurance premiums.
The term "production company" shall H.not mean or include any company owned, affiliated, or controlled, in whole or in part, by any company or person which is in default on a loan made by the state or a loan guaranteed by the state, or any company or person who has ever declared bankruptcy under which an obligation of the company or person to pay or repay public funds or monies was discharged as a part of such bankruptcy.
B.
No.
1880 *HR26/R2501.1* ~ OFFICIAL ~ 25/HR26/R2501.1 PAGE 13(BS\KW) not mean or include any company owned, affiliated, or controlled, in whole or in part, by any company or person which is in default on a loan made by the state or a loan guaranteed by the state, or any company or person who has ever declared bankruptcy under which an obligation of the company or person to pay or repay public funds or monies was discharged as a part of such bankruptcy.
PAGE 12880 (g) "Resident" or "resident of Mississippi" means a natural person, and for the purpose of determining eligibility for the rebate provided by this section, any person domiciled in the State of Mississippi and any other person who maintains a permanent place of abode within the state and spends in the aggregate more than six (6) months of each year within the state.
Subject to H.the provisions of this section, the amount of the rebate shall be equal to twenty-five percent (25%) of the base investment made by the production company.
B.
No.
1880 *HR26/R2501.1* ~ OFFICIAL ~ 25/HR26/R2501.1 PAGE 14(BS\KW) the provisions of this section, the amount of the rebate shall be equal to twenty-five percent (25%) of the base investment made by the production company.
However, if the payroll and fringes paid for an employee exceeds Three Million Dollars ($3,000,000.00), PAGE 13880 then the rebate is authorized only for the first Three Million Dollars ($3,000,000.00) of such payroll and fringes.
(d) In addition to the rebates authorized in paragraphs (a), (b) and (c) of this subsection, a production company may receive an additional rebate equal to five percent (5%) of the payroll and fringes paid for any employee who is an honorably H.discharged veteran of the United States Armed Forces and whose wages are subject to the Mississippi Income Tax Withholding Law of 1968.
B.
No.
1880 *HR26/R2501.1* ~ OFFICIAL ~ 25/HR26/R2501.1 PAGE 15(BS\KW) discharged veteran of the United States Armed Forces and whose wages are subject to the Mississippi Income Tax Withholding Law of 1968.
PAGE 14880 (f) If a series has physical production activities and/or post-production activities both inside and outside the state, then the production company shall be required to provide an itemized accounting for each employee regarding such activities inside and outside the state for the purposes of proration of eligible payroll based on the percentage of activities performed in the state.
(2)( * * *3) A production company desiring a rebate under this section must submit a rebate request to the Department of Revenue upon completion of the project.
The request must include a detailed accounting of the base investment made by the production H.company and any other information required by the Department of Revenue.
B.
No.
1880 *HR26/R2501.1* ~ OFFICIAL ~ 25/HR26/R2501.1 PAGE 16(BS\KW) company and any other information required by the Department of Revenue.
(3)( * * *4) The Department of Revenue shall have all powers necessary to implement and administer the provisions of this section, and the Department of Revenue shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section.
This act shall take effect and be in force from and after January 1, 2025.2025, and shall stand repealed on December 31, 2024.
H.PAGE 15880 Further, amend by striking the title in its entirety and inserting in lieu thereof the following:
B.AN ACT TO PROVIDE AN INCOME TAX CREDIT FOR A PORTION OF CERTAIN EXPENDITURES MADE BY COMPANIES ENGAGED IN CERTAIN TELEVISION PRODUCTIONS IN MISSISSIPPI;
No.TO DEFINE CERTAIN TERMS;
1880TO *HR26/R2501.1*ESTABLISH ~THE OFFICIALAMOUNT ~OF 25/HR26/R2501.1THE ST:CREDIT;
IncomeTO tax;PROVIDE THAT, IF THE AMOUNT OF THE CREDIT CLAIMED BY A PRODUCTION COMPANY EXCEEDS THE AMOUNT OF INCOME TAX LIABILITY OF THE PRODUCTION COMPANY FOR A TAXABLE YEAR, THE PRODUCTION COMPANY MAY CARRY THE EXCESS CREDIT FORWARD FOR 10 YEARS;
authorizeTO taxPROVIDE creditTHAT, forIN PAGELIEU 17(BS\KW)OF companiesCLAIMING engagedA inTAX televisionCREDIT, productions.THE PRODUCTION COMPANY MAY ELECT TO CLAIM A REBATE IN THE AMOUNT OF 75% OF THE AMOUNT IT WOULD BE ELIGIBLE TO CLAIM AS A CREDIT;
TO AMEND SECTIONS 57-89-7 AND 57-89-51, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS ACT;
AND FOR RELATED PURPOSES.
SS26\HB1880A.J Amanda White Secretary of the Senate PAGE 16880