Biggins Lacy Shapiro & Company, LLC

Mississippi Economic Development Incentive Programs

cash rebates

Advantage Jobs Incentive Program: Qualified businesses that create at least 25 jobs paying at least 110% of the county average wage or businesses that are data and information processing enterprises that create at least 200 jobs may receive a rebate equal to a percentage of a company’s payroll for up to 10 years. The amount of the rebate is valued up to 90% of the actual state income taxes withheld from employees. 

TAX CREDITS

Jobs Tax Credit:  Eligible businesses that increase headcount in the state may be eligible for a tax credit to offset up to 50% of their corporate income tax; credits are available for a 5-year period after jobs are created. Tax credit on per job basis is determined as:

  • 10% of payroll for a project located in a Tier 3 (less developed) county and that creates at least 10 new jobs
  • 5.0% of payroll for a project located in a Tier 2 (moderately developed) county and that creates at least 15 new jobs
  • 2.5% of payroll for a project located in a Tier 1 (more developed) county and that creates at least 20 new jobs

National or Regional Headquarters Tax Credit: Businesses that establish a national or regional corporate headquarters in Mississippi may receive a tax credit of $500-$2,000 for each full-time job created.  The actual credit will be based on the wage levels of the newly created jobs. A minimum of 20 new headquarters jobs must be created to be eligible for the credit which can be used to offset up to 50% of a company’s tax liability in a given year.  Unused credits may be carried forward for up to 5 years.

Research and Development Skills Tax Credit: Tax credits equal to $1,000 per employee per year for a 5 year period and may be claimed by a business for any position that requires research or development skills. The credit can offset up to 50% of income tax; unused credits may be carried forward for up to 5 years.

Manufacturing Investment Tax Credit:  To support the retention and expansion of manufacturers, Mississippi offers an investment tax credit to companies that have maintained a manufacturing facility in the state for at least 2 years.  To qualify, a business must invest at least $1 million in buildings and/or equipment.  A corporate income tax credit equal to 5% of eligible investment may be awarded to qualifying manufacturers with a maximum available credit of $1 million per project. These non-refundable and non-transferable credits can be used to offset up to 50% of a company’s tax liability in a given year.  Unused credits may be carried forward for up to 5 years.

GRANTS

Job Protection Grant: This program provides incentives to companies in “at-risk industries” to encourage them to retain business operations in Mississippi.  Qualifying companies must have operated a business facility in the state for at least 3 years and have had to eliminate jobs or are at risk of doing so as a result of outsourcing.  Grants must be used to retain jobs and improve productivity. The value of the grants cannot exceed 50% of the project costs.

Mississippi Works Fund Grant:  The Mississippi Works Fund is a flexible workforce training incentive that allows Mississippi to proactively meet the training needs of both new and existing employers in the state.  Designed to provide businesses locating or expanding in the state with additional workforce training resources and help build a more qualified applicant pool in the state, Mississippi Works Fund grants may be used to supplement other training resources the state offers and can help meet training needs that are not met through existing resources.  Training is conducted through Mississippi’s community college system and other training providers in Mississippi.  The Mississippi Legislature approved a total of $50 million for the Mississippi Works Fund.

TAX EXEMPTIONS

Sales and Use Tax Exemptions: A one-half or full sales and use tax exemption, depending on the county in which the facility is located, is available to manufacturers and other eligible businesses locating new facilities or expanding in Mississippi on eligible machinery and equipment purchases related to a new or expanded facility and on building materials used in construction, provided the materials are purchased directly by the eligible business. Exemptions are available on component building materials, machinery and equipment and some purchases made with bond proceeds. Exemptions are also available for eligible businesses that establish a national or regional headquarters in Mississippi.  In addition, aerospace, clean energy, and data center projects that meet certain job creation and capital investment requirements may receive exemptions and other incentives.

Property Tax Exemptions/Abatements:  Local governing authorities may grant a property tax exemption for up to 10 years on real and tangible personal property being used in the state. The exemption may be granted for all local property taxes except school district taxes on any property, with the exception of finished goods or rolling stock.  The exemption usually applies to property taxes on land, buildings, machinery, equipment, furniture, fixtures, raw materials and work in process.  Local authorities also may grant a free port warehouse exemption from property taxes paid on finished goods inventories leaving Mississippi. In addition, local authorities may grant a fee in lieu of property taxes for eligible new businesses or expansion projects in the state that make a capital investment of more than $60 million. This negotiated fee is paid in place of the calculated property tax typically due on the property. It may be awarded for up to 30 years but cannot be less than one third of the property tax levy, including the property taxes assessed for school districts.  No particular parcel of land, real property improvement or item of personal property can be subject to a fee in lieu for more than 10 years.  

Growth and Prosperity (GAP) Program: Eligible businesses that create at least 10 jobs and locate or expand in one of 19 GAP-eligible counties that have been designated as economically distressed may receive a 10-year exemption from state income and franchise taxes.  Additional incentives include an exemption from real and business personal property taxes as well as sales and use taxes.

Last Updated: June 2018



 
Biggins Lacy Shapiro & Company, LLC
609-924-9775
info@blsstrategies.com