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

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

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

SENATE BILL NO. 3228

AN ACT TO AMEND SECTION 27-7-22.50, MISSISSIPPI CODE OF 1972, 1
WHICH AUTHORIZES AN INCOME TAX CREDIT FOR EMPLOYERS WHO SPONSOR 2
SKILLS TRAINING FOR EMPLOYEES, TO INCREASE THE MAXIMUM AGGREGATE 3
AMOUNT OF TAX CREDITS THAT MAY BE CLAIMED BY ALL TAXPAYERS 4
CLAIMING A CREDIT IN A TAXABLE YEAR; TO EXTEND THE DATE OF REPEAL 5
ON THE SECTION; AND FOR RELATED PURPOSES. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 7
SECTION 1. Section 27-7-22.50, Mississippi Code of 1972, is 8
amended as follows: 9
27-7-22.50. (1) As used in this section, the following 10
words and phrases shall have the meanings ascribed herein unless 11
the context clearly requires otherwise: 12
(a) "Skills training" means any employer-sponsored 13
training by an appropriate community/junior college or training 14
approved by such community/junior college that enhances skills 15
that improve job performance. If the employer provides 16
preemployment training, the portion of the preemployment training 17
that involves skills training shall be eligible for the credit. 18
(b) "Employer-sponsored training" means training 19
provided by the appropriate community/junior college in the 20
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district within which the employer is located or training approved 21
by such community/junior college. 22
(c) "Employer" means those permanent business 23
enterprises as defined and set out in Section 57-73-21. 24
(2) A fifty percent (50%) income tax credit shall be granted 25
to any employer sponsoring skills training. The fifty percent 26
(50%) credit shall be granted to employers that participate in 27
employer-sponsored training programs through any community/junior 28
college in the district within which the employer is located or 29
training approved by such community/junior college. The credit is 30
applied to qualified training expenses, which are expenses related 31
to instructors, instructional materials and equipment, and the 32
construction and maintenance of facilities by such employer 33
designated for training purposes which are attributable to 34
training provided through such community/junior college or 35
training approved by such community/junior college. The credit 36
allowed under this section shall only be used by the actual 37
employer qualifying for the credit. The credit shall not exceed 38
fifty percent (50%) of the taxpayer's income tax liability in a 39
tax year and may be carried forward for five (5) successive years 40
if the amount allowable as a credit exceeds the income tax 41
liability in a tax year; however, thereafter, if the amount 42
allowable as a credit exceeds the tax liability, the amount of 43
excess credit shall not be refundable or carried forward to any 44
other taxable year. The credit authorized under this section 45
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shall not exceed Two Thousand Five Hundred Dollars ($2,500.00) per 46
employee during any one (1) year. The maximum aggregate amount of 47
tax credits that may be claimed by all taxpayers claiming a credit 48
under this section in a taxable year shall not exceed * * * Two 49
Million Five Hundred Thousand Dollars ($2,500,000.00). Nothing in 50
this section shall be interpreted in any manner as to prevent the 51
continuing operation of state-supported university programs. 52
(3) Employer-sponsored training shall include an evaluation 53
by the local community or junior college that serves the employer 54
to ensure that the training provided is job related and conforms 55
to the definition of "skills training" in subsection (1)(a) of 56
this section. 57
(4) Employers shall be certified as eligible for the tax 58
credit by the local community or junior college that serves the 59
employer and the department. 60
(5) The tax credits provided for in this section shall be in 61
addition to all other tax credits heretofore granted by the laws 62
of the state. 63
(6) A community/junior college may commit to provide 64
employer-sponsored skills training programs for an employer for a 65
multiple number of years, not to exceed five (5) years. 66
(7) The Mississippi Community College Board shall make a 67
report to the Legislature by January 30 of each year summarizing 68
the number of participants, the junior or community college 69
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ST: Income tax credits; increase aggregate
amount for certain employers sponsoring employee
skills training, and extend repealer.
through which the training was offered, and the type of training 70
offered. 71
(8) This section shall stand repealed from and after 72
December 31, * * * 2030. 73
SECTION 2. This act shall take effect and be in force from 74
and after January 1, 2026. 75