A bill to give businesses a larger income tax credit when they pay inventory taxes is headed to Mississippi Gov. Phil Bryant.

Senate Bill 2934 passed the Senate Monday, two days after clearing the House.

The bill would increase the tax credit, making it equal to state income tax or inventory tax, whichever is the smaller figure, from 2016 onward.

House Ways and Means chairman, Jeff Smith, says the bill's first stage wouldn't go into effect until 2014, allowing time for further economic recovery before impacting the treasury.

Opponents say the bill will give needless tax credits to large corporations that don't need the money.

Proponents say most large corporations that do business in the state are not headquartered in
Mississippi, and therefore wouldn't be eligible for the credit.