35 Miss. Admin. Code Pt. X, Ch. 05 — Rural Economic Development (RED) Credit

100 An income tax credit is available for debt service on certain bonds issued by the Mississippi
Business Finance Corporation. Debt service may include the total amount paid to service the
debt. This credit is also known as the Mississippi Business Finance Corporation Revenue Bond
Service Credit.
101 Only debt service paid on revenue bonds issued by the Mississippi Business Finance
Corporation to finance economic development projects to induce the location of manufacturing
facilities within this state can be taken as a credit. This credit can be used against the taxes due
from the income generated by or arising out of the economic development project. The bonds
that qualify for this credit are the bonds issued under the authority of Sections 57 -10-401
through 57-10-439 of the Mississippi Code of 1972.
102 For more information on the benefits of this program contact the Mississippi Development
Authority, Post Office Box 849, Jackson, MS 39205-0849.
103 This credit has been amended several times and the credit carry forward periods will vary.
Currently, excess credits may be carried forward to the three (3) succeeding years following
the year in which the credit was earned. The credit is limited to eighty percent (80%) of the
income tax due on income generated by the economic development project that gave rise to the
credit. This income is determined by a formula adopted by the Mississippi Business Finance
Corporation. It may be used in combination with any of the other credits.
104 The credit cannot be used by any business enterprise or corporation other than the business
enterprise actually 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.
105 The credit is not refundable. An expense cannot be used both as a credit and a deduction. If a
credit is based on an expense, then the amount of the credit taken must be added back to
Mississippi taxable income in the year the credit is used.
106 To apply for this credit: You do not have to apply for this credit, but you must attach a
schedule of computation of the current year's credit and expenses that created the credit. You
must also attach a schedule of credits used in prior years with any carry forward amounts
showing the amounts used and carried forward by year.
107 This credit is authorized under Section 27-7-22.3 of the Mississippi Code of 1972, as amended.
108 This regulation is effective January 1, 2001.
109 (Reserved)
110 (Reserved)