35 Miss. Admin. Code Pt. X, Ch. 06 — Ad Valorem Credit

100 An income tax credit is available for ad valorem tax paid on commodities, goods, wares and
merchandise held for resale by manufacturers, distributors, and wholesale or retail merchants.
The credit is limited to the lesser of $5,000.00 per location or the income tax attributable to the
location. For the credit to be taken, the ad valorem tax must be determined by specific
location. Within these limitations, this credit may offset up to one hundred percent (100%) of
the income tax due. It may be used in combination with any of the other credits.
101 The credit may be claimed only in the tax year in which the ad valorem taxes are paid. A carry
forward is not available.
102 A copy of the tax receipt from the county, city or school district that shows the inventory
valuation and a schedule showing the calculation by location of the ad valorem tax paid based
on the valuation must be attached to the return.
103 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.
104 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.
105 To apply for this credit: You do not have to apply for this credit ahead of time, but you must
attach a copy of the tax receipt to your return to claim this credit. If you have more than five
(5) locations, you should attach five (5) receipts and a schedule of all receipts including the
ones attached.
106 This credit is authorized under Miss. Code Ann. Section 27-7-22.5, as amended.
107 (Reserved)