Definitions; credit against income tax and corporation franchise tax liability of telecommunications enterprises for investments made after June 30, 2003 and before July 1, 2020
Definitions; credit against income tax and corporation franchise tax liability of telecommunications enterprises for investments made after June 30, 2003 and before July 1, 2020
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For purposes of this section:
"Telecommunications enterprises" shall have the meaning ascribed to such term in Section 57-73-21(14);
"Tier One areas" mean counties designated as Tier One areas pursuant to Section 57-73-21(1);
"Tier Two areas" mean counties designated as Tier Two areas pursuant to Section 57-73-21(1);
"Tier Three areas" mean counties designated as Tier Three areas pursuant to Section 57-73-21(1); and
"Equipment used in the deployment of broadband technologies" means any equipment capable of being used for or in connection with the transmission of information at a rate, prior to taking into account the effects of any signal degradation, that is not less than three hundred eighty-four (384) kilobits per second in at least one (1) direction, including, but not limited to, asynchronous transfer mode switches, digital subscriber line access multiplexers, routers, servers, multiplexers, fiber optics and related equipment.
With respect to the investment in each year by a telecommunications enterprise after June 30, 2003, and before July 1, 2020, there shall be allowed annually as a credit against the aggregate tax imposed by Chapters 7 and 13 of Title 27, Mississippi Code of 1972, an amount equal to:
Five percent (5%) of the cost of equipment used in the deployment of broadband technologies in Tier One areas;
Ten percent (10%) of the cost of equipment used in the deployment of broadband technologies in Tier Two areas; and
Fifteen percent (15%) of the cost of equipment used in the deployment of broadband technologies in Tier Three areas.
Such annual credits shall be allowed commencing with the taxable year in which such property is placed in service and continue for nine (9) consecutive years thereafter. The aggregate credit established by this section taken in any one (1) tax year shall be limited to an amount not greater than fifty percent (50%) of the taxpayer's tax liabilities under Chapters 7 and 13 of Title 27, Mississippi Code of 1972; however, any tax credit claimed under this section, but not used in any taxable year, may be carried forward for ten (10) consecutive years from the close of the tax year in which the credits were earned.
The maximum aggregate amount of credits that may be claimed under this section shall not exceed the original investment made by a telecommunications enterprise in the qualifying equipment used in the deployment of broadband technologies.
For purposes of this section, the tier in which broadband technology is deployed shall be determined in the year in which such technology is deployed in a county and such tier shall not change if the county is later designated in another tier.