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Mississippi House Bill HB1545

Mississippi 2025 Regular Session

Mississippi House Bill HB1545 Compare Versions

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11 MISSISSIPPI LEGISLATURE 2025 Regular Session To: Ways and Means By: Representative Powell House Bill 1545 AN ACT TO AMEND SECTION 57-87-5, MISSISSIPPI CODE OF 1972, TO AMEND THE DEFINITION OF "EQUIPMENT USED IN THE DEPLOYMENT OF BROADBAND TECHNOLOGIES" FOR PURPOSES OF THE CREDIT AGAINST INCOME TAX AND CORPORATION FRANCHISE TAX LIABILITY OF TELECOMMUNICATIONS ENTERPRISES FOR CERTAIN INVESTMENTS, AND FOR PURPOSES OF THE AD VALOREM TAX EXEMPTION FOR SUCH EQUIPMENT PLACED IN SERVICE IN A CERTAIN TIME PERIOD; TO AMEND SECTION 57-87-7, MISSISSIPPI CODE OF 1972, TO SPECIFY THE EQUIPMENT PLACED IN SERVICE AFTER JUNE 30, 2025, AND BEFORE JULY 1, 2030, THAT IS ELIGIBLE FOR THE EXEMPTION; TO REQUIRE A TAXPAYER TO SUBMIT A CERTIFIED, SWORN DESCRIPTION OF THE EQUIPMENT TO THE TAX ASSESSOR OF THE COUNTY IN WHICH SUCH EQUIPMENT IS LOCATED, ON OR BEFORE APRIL 1 OF THE FIRST ASSESSMENT YEAR IN WHICH THE EXEMPTION IS BEING CLAIMED; AND FOR RELATED PURPOSES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: SECTION 1. Section 57-87-5, Mississippi Code of 1972, is amended as follows: 57-87-5. (1) For purposes of this * * *section chapter: (a) "Telecommunications enterprises" shall have the meaning ascribed to such term in Section 57-73-21(14); (b) "Tier One areas" mean counties designated as Tier One areas pursuant to Section 57-73-21(1); (c) "Tier Two areas" mean counties designated as Tier Two areas pursuant to Section 57-73-21(1); (d) "Tier Three areas" mean counties designated as Tier Three areas pursuant to Section 57-73-21(1); and (e) "Equipment used in the deployment of broadband technologies" means any equipment capable of being used for or in connection with the transmission of information at a rate, prior to taking into account the effects of any signal degradation, that is not less than * * *three hundred eighty‑four (384) kilobits per second in at least one (1) direction, including, but not limited to, asynchronous transfer mode switches, digital subscriber line access multiplexers, routers, servers, multiplexers, fiber optics and related equipment thirty-five (35) megabits per second downlink and three (3) megabits per second uplink for mobile broadband or that is capable of providing fixed broadband service as defined by Section 77-19-3. (2) With respect to the investment in each year by a telecommunications enterprise after June 30, 2003, and before July 1, * * *2025 2030, there shall be allowed annually as a credit against the aggregate tax imposed by Chapters 7 and 13 of Title 27, Mississippi Code of 1972, an amount equal to: (a) Five percent (5%) of the cost of equipment used in the deployment of broadband technologies in Tier One areas; (b) Ten percent (10%) of the cost of equipment used in the deployment of broadband technologies in Tier Two areas; and (c) Fifteen percent (15%) of the cost of equipment used in the deployment of broadband technologies in Tier Three areas. (3) Such annual credits shall be allowed commencing with the taxable year in which such property is placed in service and continue for nine (9) consecutive years thereafter. The aggregate credit established by this section taken in any one (1) tax year shall be limited to an amount not greater than fifty percent (50%) of the taxpayer's tax liabilities under Chapters 7 and 13 of Title 27, Mississippi Code of 1972; however, any tax credit claimed under this section, but not used in any taxable year, may be carried forward for ten (10) consecutive years from the close of the tax year in which the credits were earned. (4) The maximum aggregate amount of credits that may be claimed under this section shall not exceed the original investment made by a telecommunications enterprise in the qualifying equipment used in the deployment of broadband technologies. (5) For purposes of this section, the tier in which broadband technology is deployed shall be determined in the year in which such technology is deployed in a county and such tier shall not change if the county is later designated in another tier. (6) There will be no credit allowed under this section if the equipment used in the deployment of broadband technologies was paid for, or its cost was reimbursed by, funds made available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. SECTION 2. Section 57-87-7, Mississippi Code of 1972, is amended as follows: 57-87-7. (1) Equipment used in the deployment of broadband technologies by a telecommunications enterprise * * *(as defined in Section 57‑73‑21(14)), that is placed in service after June 30, 2003, and before July 1, 2025, shall be exempt from ad valorem taxation for a period of ten (10) years after the date such equipment is placed in service. * * * For purposes of this section, "equipment used in the deployment of broadband technologies" means any equipment capable of being used for or in connection with the transmission of information at a rate, prior to taking into account the effects of any signal degradation, that is not less than three hundred eighty‑four (384) kilobits per second in at least one direction, including, but not limited to, asynchronous transfer mode switches, digital subscriber line access multiplexers, routers, servers, multiplexers, fiber optics and related equipment. (2) Equipment used in the deployment of fixed broadband technologies by a telecommunications enterprise that is placed in service after June 30, 2025, and before July 1, 2030, and capable of transmission at average speeds per customer at least equal to the Federal Communications Commission's (FCC's) fixed broadband speed benchmarks in both directions, shall be exempt from ad valorem taxation for a period of ten (10) years after the date such equipment is placed in service, or for such period the equipment remains capable of speeds at least equal to the FCC's then-current fixed broadband speed benchmarks in both directions, whichever period is less. (3) Equipment used in the deployment of mobile broadband technologies by a telecommunications enterprise that is placed in service after June 30, 2025, and before July 1, 2030, and capable of transmission at average speeds not less than thirty-five (35) megabits per second downlink and three (3) megabits per second uplink, shall be exempt from ad valorem taxation for a period of five (5) years after the date such equipment is placed in service. (4) A taxpayer seeking an exemption for equipment under this section shall submit a certified, sworn description of such equipment, including transmission speeds, to the tax assessor of the county in which such equipment is located, on or before April 1 of the first assessment year in which the exemption is being claimed. SECTION 3. This act shall take effect and be in force from and after January 1, 2025.
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33 MISSISSIPPI LEGISLATURE
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55 2025 Regular Session
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77 To: Ways and Means
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99 By: Representative Powell
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1111 # House Bill 1545
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1313 AN ACT TO AMEND SECTION 57-87-5, MISSISSIPPI CODE OF 1972, TO AMEND THE DEFINITION OF "EQUIPMENT USED IN THE DEPLOYMENT OF BROADBAND TECHNOLOGIES" FOR PURPOSES OF THE CREDIT AGAINST INCOME TAX AND CORPORATION FRANCHISE TAX LIABILITY OF TELECOMMUNICATIONS ENTERPRISES FOR CERTAIN INVESTMENTS, AND FOR PURPOSES OF THE AD VALOREM TAX EXEMPTION FOR SUCH EQUIPMENT PLACED IN SERVICE IN A CERTAIN TIME PERIOD; TO AMEND SECTION 57-87-7, MISSISSIPPI CODE OF 1972, TO SPECIFY THE EQUIPMENT PLACED IN SERVICE AFTER JUNE 30, 2025, AND BEFORE JULY 1, 2030, THAT IS ELIGIBLE FOR THE EXEMPTION; TO REQUIRE A TAXPAYER TO SUBMIT A CERTIFIED, SWORN DESCRIPTION OF THE EQUIPMENT TO THE TAX ASSESSOR OF THE COUNTY IN WHICH SUCH EQUIPMENT IS LOCATED, ON OR BEFORE APRIL 1 OF THE FIRST ASSESSMENT YEAR IN WHICH THE EXEMPTION IS BEING CLAIMED; AND FOR RELATED PURPOSES.
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1515 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
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1717 SECTION 1. Section 57-87-5, Mississippi Code of 1972, is amended as follows:
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1919 57-87-5. (1) For purposes of this * * *section chapter:
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2121 (a) "Telecommunications enterprises" shall have the meaning ascribed to such term in Section 57-73-21(14);
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2323 (b) "Tier One areas" mean counties designated as Tier One areas pursuant to Section 57-73-21(1);
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2525 (c) "Tier Two areas" mean counties designated as Tier Two areas pursuant to Section 57-73-21(1);
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2727 (d) "Tier Three areas" mean counties designated as Tier Three areas pursuant to Section 57-73-21(1); and
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2929 (e) "Equipment used in the deployment of broadband technologies" means any equipment capable of being used for or in connection with the transmission of information at a rate, prior to taking into account the effects of any signal degradation, that is not less than * * *three hundred eighty‑four (384) kilobits per second in at least one (1) direction, including, but not limited to, asynchronous transfer mode switches, digital subscriber line access multiplexers, routers, servers, multiplexers, fiber optics and related equipment thirty-five (35) megabits per second downlink and three (3) megabits per second uplink for mobile broadband or that is capable of providing fixed broadband service as defined by Section 77-19-3.
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3131 (2) With respect to the investment in each year by a telecommunications enterprise after June 30, 2003, and before July 1, * * *2025 2030, there shall be allowed annually as a credit against the aggregate tax imposed by Chapters 7 and 13 of Title 27, Mississippi Code of 1972, an amount equal to:
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3333 (a) Five percent (5%) of the cost of equipment used in the deployment of broadband technologies in Tier One areas;
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3535 (b) Ten percent (10%) of the cost of equipment used in the deployment of broadband technologies in Tier Two areas; and
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3737 (c) Fifteen percent (15%) of the cost of equipment used in the deployment of broadband technologies in Tier Three areas.
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3939 (3) Such annual credits shall be allowed commencing with the taxable year in which such property is placed in service and continue for nine (9) consecutive years thereafter. The aggregate credit established by this section taken in any one (1)
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4141 tax year shall be limited to an amount not greater than fifty percent (50%) of the taxpayer's tax liabilities under Chapters 7 and 13 of Title 27, Mississippi Code of 1972; however, any tax credit claimed under this section, but not used in any taxable year, may be carried forward for ten (10) consecutive years from the close of the tax year in which the credits were earned.
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4343 (4) The maximum aggregate amount of credits that may be claimed under this section shall not exceed the original investment made by a telecommunications enterprise in the qualifying equipment used in the deployment of broadband technologies.
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4545 (5) For purposes of this section, the tier in which broadband technology is deployed shall be determined in the year in which such technology is deployed in a county and such tier shall not change if the county is later designated in another tier.
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4747 (6) There will be no credit allowed under this section if the equipment used in the deployment of broadband technologies was paid for, or its cost was reimbursed by, funds made available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
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4949 SECTION 2. Section 57-87-7, Mississippi Code of 1972, is amended as follows:
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5151 57-87-7. (1) Equipment used in the deployment of broadband technologies by a telecommunications enterprise * * *(as defined in Section 57‑73‑21(14)), that is placed in service after June 30, 2003, and before July 1, 2025, shall be exempt from ad valorem taxation for a period of ten (10) years after the date such equipment is placed in service. * * * For purposes of this section, "equipment used in the deployment of broadband technologies" means any equipment capable of being used for or in connection with the transmission of information at a rate, prior to taking into account the effects of any signal degradation, that is not less than three hundred eighty‑four (384) kilobits per second in at least one direction, including, but not limited to, asynchronous transfer mode switches, digital subscriber line access multiplexers, routers, servers, multiplexers, fiber optics and related equipment.
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5353 (2) Equipment used in the deployment of fixed broadband technologies by a telecommunications enterprise that is placed in service after June 30, 2025, and before July 1, 2030, and capable of transmission at average speeds per customer at least equal to the Federal Communications Commission's (FCC's) fixed broadband speed benchmarks in both directions, shall be exempt from ad valorem taxation for a period of ten (10) years after the date such equipment is placed in service, or for such period the equipment remains capable of speeds at least equal to the FCC's then-current fixed broadband speed benchmarks in both directions, whichever period is less.
5454
5555 (3) Equipment used in the deployment of mobile broadband technologies by a telecommunications enterprise that is placed in service after June 30, 2025, and before July 1, 2030, and capable of transmission at average speeds not less than thirty-five (35) megabits per second downlink and three (3) megabits per second uplink, shall be exempt from ad valorem taxation for a period of five (5) years after the date such equipment is placed in service.
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5757 (4) A taxpayer seeking an exemption for equipment under this section shall submit a certified, sworn description of such equipment, including transmission speeds, to the tax assessor of the county in which such equipment is located, on or before April 1 of the first assessment year in which the exemption is being claimed.
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5959 SECTION 3. This act shall take effect and be in force from and after January 1, 2025.