Mississippi Senate Bill SB2253

Mississippi 2025 Regular Session

• Introduced: 1/20/25
• Refer: 1/20/25
• Failed: 2/26/25

Caption

Mississippi Workforce Housing Tax Credit Act; enact.

Impact

The Mississippi Workforce Housing Tax Credit Act establishes new guidelines for how tax credits can be allocated for construction projects that meet certain criteria. The act specifies that the amount of state tax credit provided will not exceed the federal housing tax credits available for the same projects, thereby ensuring that the state maintains fiscal responsibility. The total allocation for these credits will be capped at four million dollars annually, and any unused credits can be carried forward for up to five years. This structured approach is intended to maintain a balance between encouraging private investment and managing the state budget effectively.

Summary

Senate Bill 2253, also known as the Mississippi Workforce Housing Tax Credit Act, seeks to create a state tax credit mechanism aimed at incentivizing investments in workforce housing projects. Eligible investors who engage in approved projects by the Mississippi Home Corporation can receive a tax credit against their state income tax, franchise tax, or insurance premium tax liability. This legislation is designed to stimulate the construction of workforce housing, which is crucial for addressing housing shortages for lower-to-middle income individuals and families within the state. It marks a significant move by the Mississippi government to facilitate accessible housing through financial support.

Contention

Notable points of contention surrounding SB2253 include concerns about the potential limitations on the availability of funds for other programs due to the set cap on tax credits. Some stakeholders argue that while incentivizing workforce housing is important, it should not come at the expense of other pressing social needs or programs. Additionally, there may be apprehensions about the administration of the program, particularly in ensuring that the criteria for qualifying projects are clear and equitable, and that the benefits indeed reach the intended demographic of workforce housing residents. Overall, while the objectives of the bill are well-received, the implications for state funding and project accessibility remain debated.