Mississippi 2024 Regular Session

Mississippi House Bill HB769

Introduced
1/29/24  
Refer
1/29/24  

Caption

Income tax; reenact and extend repealer on credit for qualified railroad reconstrution or replacement expenditures.

Impact

The bill outlines specific definitions and eligibility requirements for both the tax credit and the parties involved. It offers a tax credit equivalent to the lesser of fifty percent of the qualified expenditures or a set amount based on the miles of railroad track owned or leased by the eligible taxpayer. The provision allows the credit to be carried forward for five consecutive years, with additional allowances for transferring unused credits to eligible transferees, thus providing flexibility and encouraging utilization of the credit over time. This could lead to significant economic benefits as industries engage in reconstruction and enhancement of rail services to expand operations.

Summary

House Bill 769 is an act aimed at reenacting and amending Section 27-7-22.42 of the Mississippi Code of 1972, which authorizes an income tax credit for qualified expenditures related to railroad reconstruction, replacement, and new rail infrastructure. This legislation was necessitated due to the previous expiration of the tax credit on January 1, 2024. By reenacting this statute, the bill seeks to provide financial incentives for railroads classified as Class II or Class III by the United States Surface Transportation Board, thereby promoting investment in Mississippi's railroad infrastructure.

Contention

While the intent behind HB 769 is to stimulate economic development and maintenance of railroad infrastructure in Mississippi, there could be notable points of contention surrounding eligibility and the adequacy of the proposed tax credit. Critics may question whether the cap of $8,000,000 annually on claims sufficiently meets the needs of all qualified railroads, particularly if multiple entities seek to capitalize on the credit in a given year. Furthermore, discussions might emerge about the balance of public funding for private infrastructure improvements, raising questions about equitable support for all sectors impacted by transportation infrastructure in the state.

Companion Bills

No companion bills found.

Previously Filed As

MS SB2835

Job tax credits for water transportation enterprises; extend repealer on.

MS HB261

Income tax; extend credit for qualified contributions to an endowed fund at qualified community foundations.

MS HB1733

Income tax; revise deduction for depreciation for certain expenditures and property.

MS SB2696

Income tax credit for qualified adoption expenses; increase amount for Mississippi children and remove CPS requirement.

MS HB262

Income tax; extend reverter on credit allowed for child adoption expenses.

MS HB564

MS Workforce Training and Education Act; extend repealer and codify repealers on conforming statutes.

MS HB335

Income tax; allow credit for investments in qualified clean-burning motor vehicle fuel property.

MS HB892

MS Workforce Training and Education Act; extend repealer on act and delete repealer on sections amended to conform in 2004.

MS HB243

Income tax; delete reverter on credit allowed for child adoption expenses.

MS HB1268

Income tax; increase tax credit allowed for child adoption expenses.

Similar Bills

MS HB624

Income tax; reenact and extend repealer on credit for certain railroad expenditures.

MS SB2477

Income tax; reenact and extend repealer on credit for certain railroad expenditures.

MS SB3163

Income tax; authorize credit for certain expenditures for railroad reconstruction or replacement or new rail infrastructure.

MS HB1108

Taxation; authorize income tax credit for certain railroad expenditures, allow ad valorem tax exemption for certain property.

MS SB2637

Strategic Multi-Modal Investment Fund; further define fund allocation.

MS SB2559

Transportation; delete repealer on harvest permit authorization and fees.

NM SB106

Short Line Railroad Modernization Tax Credit

NM SB221

Rail Infrastructure Tax Credits