Mississippi House Bill HB1684

Mississippi 2022 Regular Session

• Introduced: 2/18/22
• Refer: 2/18/22
• Engrossed: 2/22/22
• Refer: 2/25/22
• Failed: 3/15/22

Caption

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

Impact

The enactment of HB1684 would significantly impact existing tax regulations in the state, specifically targeting the wood energy sector. By incentivizing investments over $100 million and the creation of at least 75 new full-time permanent jobs, the bill aims to enhance the economic viability of low-value wood utilization and development of high-energy products. State fiscal policy would thus reflect a shift towards supporting renewable energy initiatives and bolstering job creation within the timber industry, which is crucial for Mississippi's economic landscape.

Summary

House Bill 1684 aims to authorize an income tax credit for taxpayers who own qualified wood energy products and engage in forest maintenance projects that meet specific investment and job creation requirements. The bill establishes definitions for key terms related to its provisions and details the criteria necessary to qualify for the tax credit. This initiative seeks to promote economic development in Mississippi by stimulating investment in the timber industry and creating new jobs within the sector. The proposed tax credit equals 30% of the cost of equipment tied to these wood energy projects, capped at $10 million per tax year.

Sentiment

The general sentiment surrounding HB1684 appears to be positive among legislators and stakeholders who support more robust economic development strategies in rural areas. Proponents argue that this tax incentive is a proactive approach to fostering a green economy through sustainable wood energy utilization. However, there may also be undercurrents of concern relating to the adequacy of oversight in the implementation of clawback provisions and whether such incentives comprehensively benefit local employment without compromising environmental standards.

Contention

Notable points of contention surrounding the bill include debates about the sufficiency of the tax credits in stimulating the desired level of investment and job creation while ensuring environmental protection. Critics may question the potential for tax revenue loss versus the projected benefits in terms of economic growth. Additionally, discussions may arise regarding the administrative aspects of enforcing compliance with the performance criteria laid out in the incentive agreements required between businesses and the Mississippi Development Authority.