One income tax bill will allow for certain small businesses to create more full time jobs. The bill was authored by Rep. Sykes and referred to Ways and Means. The credit would be available to businesses in counties designated as Tier Three and would allow for the creation of full time jobs for at 10% of payroll for at least 5 years.
House Bill 17
- Small business enterprises in counties designated as Tier Three areas are allowed a job tax credit for taxes imposed by Section 27-7-5 equal to ten percent (10%) of the payroll of the enterprise for net new full-time jobs for five (5) years beginning with years two (2) through six (6) after the creation of the minimum number of jobs required by this subsection; however, if the small business enterprise is located in an area that has been declared by the Governor to be a disaster area and as a direct result of the disaster the small business enterprise is unable to maintain the required number of jobs, the Commissioner of Revenue may extend this time period for not more than two (2) years. The number of new full-time jobs must be determined by comparing the monthly average number of full-time employees subject to Mississippi income tax withholding for the taxable year with the corresponding period of the prior taxable year. Only those small business enterprises that increase employment by ten percent (10%) or more are eligible for the credit. A small business enterprise awarded a credit under this subsection shall be eligible to receive the credit during the five (5) years regardless of whether after the increase in employment for which the credit was awarded, the business enterprise has more than one hundred (100) employees. However, credit is not allowed during any of the five (5) years if the net employment increase falls below ten percent (10%). The Department of Revenue shall adjust the credit allowed each year for the net new employment fluctuations above the minimum level of ten percent (10%).
About the Author(s)
Sarah Ulmer
Sarah is a Mississippi native, born and raised in Madison. She is a graduate of Mississippi State University, where she studied Communications, with an emphasis in Broadcasting and Journalism. Sarah’s experience spans multiple mediums, including extensive videography with both at home and overseas, broadcasting daily news, and hosting a live radio show. In 2017, Sarah became a member of the Capitol Press Corp in Mississippi and has faithfully covered the decisions being made by leaders on some of the most important issues facing our state. Email Sarah: sarah@magnoliatribune.com
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