Mississippi HB 658: Qualified equity investment tax credits; revise certain provisions and extend authority of Mississippi Development Authority to allocate.

Bill Text

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2024

By: Representative Bell (21st)

HOUSE BILL NO. 658

AN ACT TO AMEND SECTION 57-105-1, MISSISSIPPI CODE OF 1972, 1
TO REVISE THE DEFINITION OF THE TERMS "ADJUSTED PURCHASE PRICE" 2
AND "QUALIFIED EQUITY INVESTMENT" FOR THE PURPOSES OF THE PROGRAM 3
THAT AUTHORIZES THE MISSISSIPPI DEVELOPMENT AUTHORITY TO ALLOCATE 4
INCOME TAX CREDITS AND INSURANCE PREMIUM TAX CREDITS FOR TAXPAYERS 5
HOLDING CERTAIN QUALIFIED EQUITY INVESTMENTS; TO REVISE THE AMOUNT 6
OF TAX CREDITS THAT THE MISSISSIPPI DEVELOPMENT AUTHORITY MAY 7
ALLOCATE UNDER THE PROGRAM DURING THE STATE FISCAL YEAR COMMENCING 8
JUNE 30, 2024, AND ENDING JULY 1, 2025; TO EXTEND UNTIL JANUARY 1, 9
2027, THE DATE AFTER WHICH THE MISSISSIPPI DEVELOPMENT AUTHORITY 10
SHALL NOT ALLOCATE TAX CREDITS UNDER SUCH PROGRAM; AND FOR RELATED 11
PURPOSES. 12
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 13
SECTION 1. Section 57-105-1, Mississippi Code of 1972, is 14
amended as follows: 15
57-105-1. (1) As used in this section: 16
(a) "Adjusted purchase price" means the investment in 17
the qualified community development entity for the qualified 18
equity investment, substantially all of the proceeds of which are 19
used to make qualified low-income community investments in 20
Mississippi. However, for investment in a qualified community 21
development entity for investment in a qualified equity investment 22
as defined in paragraph (f) of this subsection by amendments made 23

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to such paragraph in this act, there is no requirement that 24
substantially all of the proceeds of the investment be used to 25
make qualified low-income community investments in Mississippi. 26
For the purposes of calculating the amount of qualified 27
low-income community investments held by a qualified community 28
development entity, an investment will be considered held by a 29
qualified community development entity even if the investment has 30
been sold or repaid; provided that the qualified community 31
development entity reinvests an amount equal to the capital 32
returned to or recovered by the qualified community development 33
entity from the original investment, exclusive of any profits 34
realized, in another qualified low-income community investment in 35
Mississippi, including any federal Indian reservation located 36
within the geographical boundary of Mississippi within twelve (12) 37
months of the receipt of such capital. A qualified community 38
development entity will not be required to reinvest capital 39
returned from the qualified low-income community investments after 40
the sixth anniversary of the issuance of the qualified equity 41
investment, the proceeds of which were used to make the qualified 42
low-income community investment, and the qualified low-income 43
community investment will be considered held by the qualified 44
community development entity through the seventh anniversary of 45
the qualified equity investment's issuance. 46
(b) "Applicable percentage" means: 47

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(i) For any equity investment issued prior to July 48
1, 2008, four percent (4%) for each of the second through seventh 49
credit allowance dates for purposes of the taxes imposed by 50
Section 27-7-5 and one and one-third percent (1-1/3%) for each of 51
the second through seventh credit allowance dates for purposes of 52
the taxes imposed by Sections 27-15-103, 27-15-109 and 27-15-123. 53
(ii) For any equity investment issued from and 54
after July 1, 2008, eight percent (8%) for each of the first 55
through third credit allowance dates for purposes of the taxes 56
imposed by Section 27-7-5 or the taxes imposed by Sections 57
27-15-103, 27-15-109 and 27-15-123. 58
(c) "Credit allowance date" means, with respect to any 59
qualified equity investment: 60
(i) The later of: 61
1. The date upon which the qualified equity 62
investment is initially made; or 63
2. The date upon which the Mississippi 64
Development Authority issues a certificate under subsection (4) of 65
this section; and 66
(ii) 1. For equity investments issued prior to 67
July 1, 2008, each of the subsequent six (6) anniversary dates of 68
the date upon which the investment is initially made; or 69
2. For equity investments issued from and 70
after July 1, 2008, each of the subsequent two (2) anniversary 71

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dates of the date determined as provided for in subparagraph (i) 72
of this paragraph. 73
(d) "Qualified community development entity" shall have 74
the meaning ascribed to such term in Section 45D of the Internal 75
Revenue Code of 1986, as amended, if the entity has entered into 76
an Allocation Agreement with the Community Development Financial 77
Institutions Fund o