SPOTLIGHT PROGRAMS

Mississippi Flexible Tax Incentive(MFLEX): MFLEX is a performance-based, discretionary tax credit available to companies that create at least 10 new full-time jobs (paying ≥75% of the state or county average wage) or invest at least $2.5 million in Mississippi. Eligible industries include manufacturing, R&D, data centers, headquarters, and others. The credit is calculated using a formula based on capital investment, job creation, and average wages, and may be used to offset state income, franchise, sales, use, and payroll withholding taxes, with no cap on total award. However, only20% of the total credit may be applied to payroll withholding in any year. Credits cannot be used for tax liabilities incurred before certification. Participation in MFLEX is exclusive, companies may not combine it with other state-level statutory incentives.  

Advantage Jobs Incentive Program: Eligible businesses may receive a rebate of up to 90%of the actual state income taxes withheld from employees. The rebate is awardedfor up to 10 years, and the rebate percentage is based on the project averagewage. To qualify, businesses must create at least 25 new jobs with an averageannual wage of 110% of the average annual county or state wage, whichever isless; Data/information processing businesses alternatively must create at least200 jobs that pay at least 100% of the annual county or state wage.

TAX CREDITS

Jobs Tax Credit: Eligible businesses that increase headcount inMississippi may qualify for a non-refundable tax credit to offset up to 10% oftheir corporate income tax liability. The credit is available for 5 years,starting in the second year after jobs are created. The tax credit amount isbased on the location and number of jobs created. Unusedcredits can be carried forward for five years.Additionally, this credit may be combined with other state incentives, such asproperty tax abatements or workforce training grants, but total credits cannotexceed 50% of the company's total Mississippi tax liability in any given year.

National or Regional Headquarters TaxCredit: Businesses thatestablish or expand a national or regional corporate headquarters inMississippi may receive a non-refundable tax credit ranging from $500 to $2,000per full-time job created, depending on wage levels. A minimum of 20 newheadquarters jobs must be created to qualify. Unused credits can be carriedforward for up to 5 years. Additionally, this credit may be combined with otherstate incentives, such as property tax abatements or workforce training grants,but total credits cannot exceed 50% of the company's total Mississippi taxliability in any given year.

Research and Development Skills TaxCredit: Businesses may claim atax credit equal to a $1,000 per employee per year tax for positions requiringresearch or development skills, such as chemists and engineers, for a 5 yearperiod. Unused credits may be carried forward for up to 5 years. Additionally,this credit may be combined with other state incentives, such as property taxabatements or workforce training grants, but total credits cannot exceed 50% ofthe company's total Mississippi tax liability in any given year.

Manufacturing Investment Tax Credit: Mississippi offers an investment tax credit tomanufacturers that have operated in the state for at least 2 years to supportretention and expansion. To qualify, a business must invest at least $1 millionin buildings and/or equipment. A corporate income tax credit equal to 5% ofeligible investment may be awarded to qualifying manufacturers, with a maximumavailable credit of $1 million per project. These non-refundable credits can beused to offset up to 50% of a company’s corporate income tax liability afterall other credits (excluding tax payments) have been used, and unused creditsmay be carried forward for up to 5 years. Unused credits may be transferred incases of mergers, acquisitions, or reorganizations, but they cannot be sold orassigned to unrelated third parties.

Rural Economic Development TaxCredits: Rural Economic Development(RED) credits can be used to reduce Mississippi corporate income tax liabilityand are available for companies using industrial revenue bonds issued by theMississippi Business Finance Corporation (MBFC). These credits are based on theamount of bond-related debt service paid on these bonds and may be used tooffset up the lesser of the income tax liability attributed to the incomegenerated by the project or 80% of the income tax liability. Eligibilitydepends on the industry sector, with qualifying businesses includingmanufacturers, telecommunications enterprises, data and information processingfacilities, distribution and warehouse facilities, national or regionalheadquarters, research and development facilities, and technology-intensiveenterprises.

TAX EXEMPTIONS

Sales and Use Tax Exemptions: Eligiblebusinesses may receive up to a 100% exemption from sales and use tax onqualifying purchases. This exemption applies to eligible machinery andequipment purchases related to new or expanded facilities and to buildingmaterials used in construction, provided the materials are purchased directlyby the eligible business. Businesses that establish or expand a national orregional headquarters in Mississippi may also qualify. Additionally, aerospace,clean energy, and data center projects that meet specific job creation andcapital investment requirements, as well as projects utilizing industrialrevenue bonds issued by the Mississippi Business Finance Corporation (MBFC),may be eligible for these exemptions. To receive the exemption, businessesmust apply and be certified by the Mississippi Department of Revenue orMississippi Development Authority.

Property Tax Exemptions/Abatements: Local governing authorities may grant propertytax exemption for up to 10 years on real and tangible personal property beingused in the state. The exemption applies to all local property taxes exceptschool district taxes and does not apply to finished goods or rolling stock.This exemption typically includes property taxes on land, buildings, machinery,equipment, furniture, fixtures, raw materials, and work in process. Localauthorities may also grant a Free Port Warehouse Exemption, which providesproperty tax relief on finished goods inventories in transit to destinationsoutside Mississippi. Additionally, local authorities may grant a Fee in Lieu ofProperty Taxes for eligible new businesses or expansion projects investing morethan $60 million in the state. This negotiated fee replaces standard propertytax obligations and may be awarded for up to 30 years but must be at leastone-third of the standard property tax levy, including school district taxes.No specific parcel of land, real property improvement, or item of personalproperty can be subject to a Fee in Lieu of more than 10 years.

Growth and Prosperity (GAP) Areas TaxExemption: Businesses that create atleast 10 jobs and locate or expand in counties designated as economicallydistressed based on poverty or unemployment criteria may receive an exemption fromstate and local taxes until December 31, 2029 and an exemption from taxeslevied by municipalities until December 31, 2033.  

DIRECT FINANCIAL ASSISTANCE

Job Protection Program: This program provides incentives to companies in“at-risk industries” to encourage them to retain business operations inMississippi.  Qualifying companies must have operated a business facilityin the state for at least 3 years and have had to eliminate jobs or are at riskof doing so as a result of outsourcing. Grants must be used to retain jobs and improve productivity. The programprovides for a maximum grant amount per project of $200,000, but the grantscannot exceed 50% of the project costs.

JOB TRAINING

MississippiWorks Fund Grant: The MississippiWorks Fund is a workforce training incentive program designed to enhanceworkforce development and meet the training needs of both new and existingemployers in the state. Funds supplement existing workforce training resources,such as the Workforce Enhancement Training Fund, to provide businesses withadditional support. Training is conducted through Mississippi’s communitycollege system and other qualified training providers. The MississippiLegislature approved $50 million to establish and support the program.

Skills Training Income Tax Credit: This credit is equal to 50% of the expenses incurredduring training. Eligible training expenses include instructorfees, course materials, and training-related travel costs, provided they aredirectly related to the approved program.The credit amount can be up to 50% of the company's state income tax liabilityfor that year. The credit is not refundable, and unused credits may be carriedforward for 5 years. The training program must be offered or approved by thecommunity college in the district of the business. The training does not haveto be held on that college's campus. The credit cannot exceed $2,500 perMississippi employee per year. While the credit is applied against income taxliability, it cannot be used to offset other tax obligations, such as sales orpayroll taxes. Employers can use this credit in conjunction with other stateworkforce development incentives, such as the Mississippi Works Fund.

Last Updated: April 2026‍