HB 1684 — Income tax; authorize a tax credit for qualified wood energy products and forest maintenance projects.

1684 (As Passed the House) AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR TAXPAYERS THAT OWN QUALIFIED WOOD ENERGY PRODUCTS AND FOREST MAINTENANCE PROJECTS AND SATISFY CERTAIN MINIMUM INVESTMENT AND NEW JOB CREATION REQUIREMENTS;

1684 *HR31/R1486.1**HR31/R1486PH* ~ OFFICIAL ~ R3/5 22/HR31/R1486.122/HR31/R1486PH PAGE 1 (BS\JAB) be paid during the term of the lease after deducting any portion of the lease payments attributable to interest, insurance, and taxes;

1684 *HR31/R1486.1**HR31/R1486PH* ~ OFFICIAL ~ 22/HR31/R1486.122/HR31/R1486PH PAGE 2(BS\JAB) ($45,000.00);

1684 *HR31/R1486.1**HR31/R1486PH* ~ OFFICIAL ~ 22/HR31/R1486.122/HR31/R1486PH PAGE 3(BS\JAB) (i) A transaction under which title to an item is transferred for consideration;

1684 *HR31/R1486.1**HR31/R1486PH* ~ OFFICIAL ~ 22/HR31/R1486.122/HR31/R1486PH PAGE 4(BS\JAB) an average annual wage of at least Sixty Thousand Dollars ($60,000.00);

1684 *HR31/R1486.1**HR31/R1486PH* ~ OFFICIAL ~ 22/HR31/R1486.122/HR31/R1486PH PAGE 5(BS\JAB) product may be used as a raw material, for productive energy use, or to manufacture other materials;

1684 *HR31/R1486.1**HR31/R1486PH* ~ OFFICIAL ~ 22/HR31/R1486.122/HR31/R1486PH PAGE 6(BS\JAB) (a) Is engaged in the business of collecting, separating, treating, pulverizing, drying, modifying, or manufacturing wood energy products;

(2) The tax credit authorized under this section shall not exceed the lesser of Ten Million Dollars ($10,000,000.00) orin theany amount of tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits for such year allowable to the taxpayer under this chapter, except credit for tax payments made by or on behalf of the taxpayer.

In addition, a taxpayer may sell or transfer the excessunused portion of the tax credit to any taxpayer having a liability for taxes under this chapter.

A tax credit for any taxable year may not be sold or transferred more than one (1) time, subject to guidelines established by the Department of Revenue.

(a) The seller's or transferor's tax credit balance before the sale or transfer of the credit;

1684 *HR31/R1486.1**HR31/R1486PH* ~ OFFICIAL ~ 22/HR31/R1486.122/HR31/R1486PH PAGE 7(BS\JAB) (a)(b) The seller's or transferor's tax credit balanceidentification beforenumber theassigned saleby orthe transferMississippi ofDevelopment theAuthority; credit;

(b) The tax credit identification number assigned by the Mississippi Development Authority;

(4) The issuance of a tax credit authorized under this section shall be subject to an incentive agreement with H.

1684 *HR31/R1486.1**HR31/R1486PH* ~ OFFICIAL ~ 22/HR31/R1486.122/HR31/R1486PH PAGE 8(BS\JAB) (4) The issuance of a tax credit authorized under this section shall be subject to an incentive agreement with performance criteria and claw back provisions between the taxpayer and the Mississippi Development Authority that:

H.1.

Does not meet the required targets of the qualified wood energy products and forest maintenance project H.

1684 *HR31/R1486.1**HR31/R1486PH* ~ OFFICIAL ~ 22/HR31/R1486.122/HR31/R1486PH PAGE 9(BS\JAB) 1.related to capital investment, job creation, timeline, or annual salary amounts;

Does not meet the required targets of the qualified wood energy products and forest maintenance project related to capital investment, job creation, timeline, or annual salary amounts;

1684 *HR31/R1486.1**HR31/R1486PH* ~ OFFICIAL ~ 22/HR31/R1486.122/HR31/R1486PH ST: