35 Miss. Admin. Code Pt. X, Ch. 03 — Research and Development Skills Credit

100 Under Miss. Code Ann. Section 57-73-21(6), a credit of $1,000.00 is available for the first five
(5) years for each net new full -time employee in any job requiring research and development
skills. The employee must be engaged in research and development activities. Qualification of
jobs for this credit would require at a minimum, a Bachelor's degree in a scientific or technical
field of study from an accredited four (4) year college or university, employment in the
employees' area of expertise, compensation at a professional level and two (2) years of related
job experience. Examples are chemists and engineers.
101 This credit is available to most companies regardless of the business in which it engages.
However, n o business enterprise for the transportation, handling, storage, processing or
disposal of hazardous waste is eligible to receive this credit.
102 A full time employee is an employee who works at least thirty -five (35) hours a week. The
employees must be located in Mississippi and subject to Mississippi withholding tax. Part-time
positions cannot be combined to add up to a full-time position.
103 If the employee is employed in Mississippi for less than twelve (12) months, credit will be
allowed for a pro-rated portion of the yearly credit in the first and last years. The amount of
the credit is pro-rated based on the number of months the employee is employed in this state
divided by twelve (12).
104 The total of the Jobs Tax Credit, the National or Regional Headquarters Credit, the National or
Regional Headquarters Relocation Credit and the Research & Development Skills Credit is
limited to 50% of the Mississippi Income Tax liability . The unused portions can be carried
forward for up to (5) years from the original year in which the excess credit could not be used.
This credit may be used in combination with any of the other credits and is not refundable.
105 The sale, merger, acquisition, reorganization, bankruptcy or relocation from one county to
another county within the state of any business enterprise may not create new eligibility in the
current or any succeeding business entity, but any unused credit may be transferred and
continued by any transferee of the business enterprise. A letter detailing the facts surrounding
such an occurrence and requesting a ruling on the eligibility of any credits must be presented to
the Department to determine whether qualifying net increases have occurred or proper
transfers of credit have been made.
106 The credit cannot be used by any business enterprise or corporation other than the business
enterprise actually creating the jobs qualifying for the credits. Credit received by a partnership,
LLC or an S-Corporation may be passed through to offset tax due from the activity that created
the credit. The credit is subject to the same limitations that the pass through entity would have
had. The tax due on salaries or wages paid by an S -Corporation and guaranteed payments to
partners by a partnership cannot be offset by the credit.
107 Compliance with the equal pay provisions of the federal Equal Pay Act of 1963, the Americans
with Disabilities Act of 1990 and the fair pay provisions of the Civil Rights Act of 1964 is
required.
108 An application is not required in order to take this credit but may be submitted for review. The
taxpayer may apply for certification of the credit by submitting the Application for
Certification of Economic Development along with a letter requesting the credit. The letter
should contain sufficient information to allow a determination of whether the employee
qualifies for the credit
109 For detailed instructions concerning the application process or claiming the credits see the
Mississippi Tax Incentives, Exemptions and Credits Book.
110 This credit is authorized under Miss. Code Ann. Section 57-73-21(6)
111 (Reserved)