Income tax; extend repealer on jobs tax credit for certain water transportation enterprises.
If enacted, HB 972 would allow eligible water transportation enterprises to continue claiming this tax credit for an additional period beyond its previous repeal date. The bill emphasizes job creation and retention in the water transportation sector by providing economic incentives that aim to bolster employment opportunities. It stipulates that enterprises cannot claim a credit for reemployment of terminated employees within a 12-month period, thus promoting sustainable employment rather than temporary jobs.
House Bill 972 is a legislative measure aimed at amending Section 27-7-22.40 of the Mississippi Code of 1972. The bill intends to extend the expiration date of a statute that provides an income tax job credit for enterprises primarily engaged in the inland water transportation of cargo across lakes, rivers, and intracoastal waterways. This tax credit amounts to $2,000 annually for each full-time Mississippi resident employed and is intended to encourage job creation within this specific industry sector.
Support for HB 972 has been largely positive among industries that rely on water transportation, as they believe this tax incentive will stimulate growth and enhance their operational capacities. Advocates argue that extending the job credit will attract more businesses to establish or expand operations in Mississippi, ultimately leading to greater economic development. However, there may be concerns regarding the long-term fiscal impact on state revenue derived from such tax deductions.
Notably, the bill includes a provision that restricts reemployment credit and addresses the handling of tax credits during business restructuring events, such as acquisitions or mergers. This regulatory approach is designed to prevent exploitation of the tax credit system while enabling certain flexibility for businesses to manage their workforce. The contention may arise from differing opinions on the balance between incentivizing growth and ensuring fair tax policy in terms of revenue generation for state services.