Income tax credits; increase aggregate amount for certain employers sponsoring employee skills training, and extend repealer., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Finance

By: Senator(s) Harkins, Simmons (13th), England

Senate Bill 3228

(As Sent to Governor)

AN ACT TO AMEND SECTION 27-7-22.50, MISSISSIPPI CODE OF
1972, WHICH AUTHORIZES AN INCOME TAX CREDIT FOR EMPLOYERS WHO SPONSOR SKILLS
TRAINING FOR EMPLOYEES, TO INCREASE THE MAXIMUM AGGREGATE AMOUNT OF TAX CREDITS
THAT MAY BE CLAIMED BY ALL TAXPAYERS CLAIMING A CREDIT IN A TAXABLE YEAR; TO
EXTEND THE DATE OF REPEAL ON THE SECTION; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1.  Section
27-7-22.50, Mississippi Code of 1972, is amended as follows:

27-7-22.50.  (1)  As used in
this section, the following words and phrases shall have the meanings ascribed
herein unless the context clearly requires otherwise:

(a)  "Skills
training" means any employer-sponsored training by an appropriate
community/junior college or training approved by such community/junior college
that enhances skills that improve job performance.  If the employer provides
preemployment training, the portion of the preemployment training that involves
skills training shall be eligible for the credit.

(b)  "Employer-sponsored
training" means training provided by the appropriate community/junior
college in the district within which the employer is located or training
approved by such community/junior college.

(c)
"Employer" means those permanent business enterprises as defined and
set out in Section 57-73-21.

(2)  A fifty percent (50%)
income tax credit shall be granted to any employer sponsoring skills training.
The fifty percent (50%) credit shall be granted to employers that participate
in employer-sponsored training programs through any community/junior college in
the district within which the employer is located or training approved by such
community/junior college.  The credit is applied to qualified training
expenses, which are expenses related to instructors, instructional materials
and equipment, and the construction and maintenance of facilities by such
employer designated for training purposes which are attributable to training
provided through such community/junior college or training approved by such
community/junior college.  The credit allowed under this section shall only be
used by the actual employer qualifying for the credit.  The credit shall not
exceed fifty percent (50%) of the taxpayer's income tax liability in a tax year
and may be carried forward for five (5) successive years if the amount
allowable as a credit exceeds the income tax liability in a tax year; however,
thereafter, if the amount allowable as a credit exceeds the tax liability, the
amount of excess credit shall not be refundable or carried forward to any other
taxable year.  The credit authorized under this section shall not exceed Two
Thousand Five Hundred Dollars ($2,500.00) per employee during any one (1)
year.  The maximum aggregate amount of tax credits that may be claimed by all
taxpayers claiming a credit under this section in a taxable year shall not
exceed * * * One Million Dollars ($1,000,000.00) Two
Million Five Hundred Thousand Dollars ($2,500,000.00).  Nothing in this
section shall be interpreted in any manner as to prevent the continuing
operation of state-supported university programs.

(3)  Employer-sponsored
training shall include an evaluation by the local community or junior college
that serves the employer to ensure that the training provided is job related
and conforms to the definition of "skills training" in subsection
(1)(a) of this section.

(4)  Employers shall be
certified as eligible for the tax credit by the local community or junior
college that serves the employer and the department.

(5)  The tax credits
provided for in this section shall be in addition to all other tax credits
heretofore granted by the laws of the state.

(6)  A community/junior
college may commit to provide employer-sponsored skills training programs for
an employer for a multiple number of years, not to exceed five (5) years.

(7)  The Mississippi
Community College Board shall make a report to the Legislature by January 30 of
each year summarizing the number of participants, the junior or community
college through which the training was offered, and the type of training
offered.

(8)  This section
shall stand repealed from and after December 31, * * * 2027 2030.

SECTION 2.  This act
shall take effect and be in force from and after January 1, 2026.