Mississippi Broadband Technology Development Act

Miss. Code Ann. tit. 57, ch. 87
in effect

Miss. Code Ann. § 57-87-3 Legislative findings.

The Legislature finds that the long-standing telecommunications policy of this state has been to ensure that all citizens have access to telephone service. The increasing reliance upon access to computer information services for jobs, housing and other necessities requires that this concept be broadened to include high-speed access to the Internet as well. The Legislature further finds that the ability of the citizens in all parts of this state to access the Internet, also known as the information superhighway, is an important component in the ability of the state to remain competitive in the fields of business and education, as well as the ability of government to provide services to these people both now and in the future. The ability of the citizens of Mississippi to access the full potential of the Internet is predicated on having the most advanced telecommunications infrastructure - the backbone to the information superhighway. The Legislature further finds and declares that it is the policy of the state to provide incentives for “telecommunications enterprises” (as defined in Section 57-73-21(14)) to invest in the infrastructure needed to provide broadband technology throughout the state to keep this state competitive and to promote economic development within the state. The Legislature further finds that despite the significant growth of computer ownership and usage, the growth has occurred to a greater extent within developed areas within this state, thereby leading to what has been termed a “digital divide” between Tier One areas within the state and areas within this state that are Tier Two and Tier Three areas (as such areas are designated in accordance with Section 57-73-21(1)). The Legislature further finds that it is in the public interest for people living in Tier Two areas and people living in Tier Three areas of the state to have high-speed access to the Internet and to adequate technology, infrastructure and advanced telecommunications service. The Legislature further finds and declares that additional incentives are warranted to encourage telecommunications enterprises to invest in the infrastructure needed to provide broadband technology in Tier Two and Tier Three areas of the state.

Miss. Code Ann. § 57-87-5 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.

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.

Miss. Code Ann. § 57-87-7 Ad valorem taxation for equipment placed in service after June 30, 2003 and before July 1, 2020 for use in deployment of broadband technologies.

Equipment used in the deployment of broadband technologies by a telecommunications enterprise (as defined in Section 57-73-21(14)), that is placed in service after June 30, 2003, and before July 1, 2020, shall be exempt from ad valorem taxation for a period of ten (10) years after the date such equipment is placed in service. For purposes of this section, “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 direction, including, but not limited to, asynchronous transfer mode switches, digital subscriber line access multiplexers, routers, servers, multiplexers, fiber optics and related equipment.

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