Mississippi Economic Development Directory
MS Statewide Economic Development Agencies
MS Regional Economic Development Agencies
MS County Economic Development Agencies
MS City Economic Development Agencies
Mississippi State Incentives
MISSISSIPPI FILM INDUSTRY INCENTIVE: Passed in 2011 and effective immediately, it increases the rebate by 5 percent and expands the definitions of qualified distribution and production to include new technology. The legislation increases the current rebate to 25 percent for qualified local spend and non-resident cast and crew payroll and to 30 percent for Mississippi resident cast and crew payroll. The per project rebate cap remains at $8 million (an approximate $30 million local spend) and the annual cap remains at $20 million. The expanded program added streaming video and Internet delivery as qualified distribution. New technology areas, such as animation, 3D applications, video game cinematics, visual effects and motion capture within the fields of feature film, television, commercials and games, were added as qualified production.
ADVANTAGE JOBS INCENTIVE PROGRAM: Provides for a rebate of a percentage of Mississippi payroll to qualified employers for a period of up to 10 years. It is available to businesses that promise significant expansion of the economy through the creation of jobs. The jobs must meet or exceed the average annual wage of the state or the county in which the company locates, whichever is lower. Minimum job creation requirements are based on the level of development of the county.
BROADBAND TECHNOLOGY TAX CREDIT: Credits provided to entities to encourage the deployment of high-speed Internet access throughout the state, with an emphasis on rural areas. Qualifying equipment used in the deployment of broadband technologies includes asynchronous transfer mode switches, digital subscriber line access multiplexers, routers, servers, multiplexes, fiber optics and related equipment.
Annual credit amounts are calculated as a percentage of eligible expenditures, based on equipment location, and is available for 10 years. The credits can be claimed against income or franchise tax, but the total amount of credits taken over the 10 year period cannot exceed 100 percent of the cost of the equipment. The credit percentage amount allowed per year is based on the development ranking of the county.
GROWTH AND PROSPERITY PROGRAM (GAP): Designed to encourage development in economically challenged areas of the state. It designates specific counties as GAP counties and provides income, franchise, sales and property tax incentives to companies that locate or expand in these locations. The following businesses that create 10 or more jobs are eligible to participate under the GAP Program:
- Manufacturing, processing, assembling, storing, warehousing, servicing, distributing or selling of any products or goods, including products of agriculture;
- Enterprises for research and development, including, but not limited to, scientific laboratories; or
- Other businesses or industries that will further the public purposes of the GAP Act as determined on a case-by-case basis by MDA, and that create a minimum of ten (10) jobs.
INDUSTRIAL PROPERTY TAX EXEMPTION: Up to a 10 year exemption from property taxes is available to eligible industries that locate or expand in the state. The exemption may be granted for all local property taxes except school district taxes on any property, but may not be granted on finished goods or rolling stock. The exemption usually includes land, buildings, machinery, equipment, furniture, fixtures, raw materials and work in process.
The following businesses qualify for this exemption, at the discretion of the county and city government:
- Manufacturers, Processors, and/or Refineries
- Research and Development Facilities
- Warehouse and Distribution Facilities
- Air and Transportation Maintenance Facilities
- Telecommunications Companies
- Data and Information Processing Companies
- Recreational Facilities that Impact Tourism
- Movie Industry Studios
- Technology intensive facilities
JOBS TAX CREDIT: Can be applied to state income tax to reduce an employer’s income tax liability. They are calculated as a percentage of eligible payroll each year for five years, based on job location and wages subject to state income tax. The credits are taken in years two through six after the new jobs are created. The following businesses qualify for these credits: Manufacturers, Wholesalers, Processors, Research and Development, Facilities, Distributors and Warehouses.
In addition, the following businesses qualify upon receiving a designation by the Mississippi Development Authority: Air and Transportation Maintenance Facilities, Telecommunications Companies, Data and Information Processing Companies, Computer Software Development Enterprises, Recreational Facilities that impact Tourism, Resort hotels having a minimum of 150 rooms, Movie Industry Studios and Technology intensive facilities.
To be eligible for this credit, the employer must create and maintain an annual average employment of the minimum number of jobs required based on the development ranking of the county.
MANUFACTURING INVESTMENT TAX CREDIT: Existing manufacturers that have operated in Mississippi for two or more years may be eligible for investment tax credits that can be applied to the entity’s state income tax liability. To qualify, an existing manufacturer must invest $1,000,000 or more in buildings and/or equipment used in the manufacturing operation. The investment credit is calculated as 5 percent of the eligible investment for a project.
MOTION PICTURE PRODUCTION TAX INCENTIVE PROGRAM: A rebate program designed to encourage production of motion pictures in Mississippi. It is designed to return a portion of the qualified expenses incurred in the state back to the production company. To qualify, a project must be a nationally distributed feature length film, video, DVD, television series or commercial that is made (in whole or in part) in MS for theatrical or television viewing. The production of news or athletic events do not qualify, nor does any project that contains any material or performance deemed obscene, as defined in Section 97-29-103, Mississippi Code of 1972.
MISSISSIPPI AEROSPACE INITIATIVE INCENTIVES PROGRAM: Provides tax incentives to companies that manufacture or assemble components for the aerospace industry or provide research, development or training services for the sector and are looking to locate or expand in the state. These incentives include a 10-year exemption from income and franchise taxes, as well as a sales and use tax exemption for the start-up of the facility. In order to qualify, companies must invest a minimum of $30 million and create at least 100 full-time jobs.
MISSISSIPPI CLEAN ENERGY INITIATIVE PROGRAM: Allows the Mississippi Development Authority (MDA) to certify companies that manufacture systems or components used to generate clean, renewable or alternative energy. This includes nuclear, solar, wind and hydro-generation.
The program provides qualifying companies with a 10-year exemption from state income and franchise taxes, as well as a sales tax exemption to establish a plant or expand an existing production facility. To qualify, businesses must commit to invest a minimum of $50 million and create 250 full-time jobs.
MISSISSIPPI DATA CENTER INCENTIVES: State sales tax exemption for all computing equipment and software used by companies certified as data centers by the MDA. Both new and replacement equipment qualify for the tax exemption. The certification requires a minimum investment of $50 million and the creation of at least 50 new jobs paying 150 percent of the average state wage.
NATIONAL OR REGIONAL HEADQUARTERS TAX CREDIT: Equal between $500 and $2,000 per position and can be applied to state income tax to reduce an eligible entity’s corporate income tax liability. These credits are awarded to induce companies to establish a headquarters in Mississippi that includes officers and other high-level employees. Transferring or establishing a national or regional headquarters must create a minimum of 35 qualified jobs within a one year period. These credits can be in addition to Jobs Tax Credits and the combination can be used to offset up to fifty percent of the entity’s state income tax liability. Any unused credits can be carried forward up to five years.
NATIONAL OR REGIONAL HEADQUARTERS SALES TAX CREDIT: A sales and use tax exemption is available for eligible businesses that create or transfer their National or Regional Headquarters to the state. This exemption applies to component building materials used in the construction or improvement as well as the machinery and equipment used in the facility. A minimum of 35 new headquarters jobs must be created at the location to qualify for this exemption, as determined by the Mississippi State Tax Commission.
PROPERTY TAX EXEMPTION FOR INDUSTRIAL REVENUE BOND FINANCING: An exemption from property taxes on land, building and equipment is available and is valid for up to 10 years on property purchased with industrial revenue bond proceeds from bonds issued by the Mississippi Business Finance Corporation (MBFC).
PROPERTY TAX EXEMPTION ON IN-STATE INVENTORY: Local governing authorities may grant a 10-year exemption from property taxes on finished goods inventory that will remain in the state. The exemption may be granted for all local property taxes except school district taxes on any property.
PROPERTY TAX EXEMPTION FOR BROADBAND TECHNOLOGY: A property tax exemption is available for eligible telecommunications businesses on the purchase of equipment used in the deployment of broadband technology in the state.
RESEARCH AND DEVELOPMENT SKILLS TAX CREDIT: Equal to $1,000 per employee per year for a five year period and can be used to reduce an eligible entity’s income tax liability. These credits are available for any position requiring R&D skills. There is no minimum number of positions that must be created to qualify for this credit and it is awarded in the amount of $1,000 per full-time employee per year for a five year period.
These credits can be in addition to Jobs Tax Credits and the combination can be used to offset up to fifty percent of the entity’s state income tax liability. Any unused credits can be carried forward up to five years.
SALES & USE TAX EXEMPTION FOR INDUSTRIAL REVENUE BOND FINANCING: To encourage construction and expansion within the state, the Mississippi Business Finance Corporation may issue IRBs for financing approved projects. Once projects are induced in the bond program, a sales tax exemption is available for all purchase made with bond proceeds.
SALES & USE TAX EXEMPTION FOR CONSTRUCTION OR EXPANSION: Available for eligible businesses that construct a new facility or expand an existing facility in the state. Eligible businesses include
Manufacturers and Custom Processors. In addition, the following businesses qualify upon receiving a designation by the MDA: Data and Information Processing Companies and Technology intensive facilities.
The amount of exemption that is allowed depends on the location of the facility. To qualify for this exemption, application must be made to the State Tax Commission prior to beginning the project.
SKILLS TRAINING INCOME TAX CREDIT: Can be applied to state income tax to reduce an employer’s income tax liability. These credits are earned by certain types of businesses that offer training to their employees in Mississippi. For expenses to qualify for the Skills Training Credit, the training program must be offered by, or be approved by, the community or junior college in the district where the business is located as well as the State Tax Commission.
DEVELOPMENT INFRASTRUCTURE GRANT PROGRAM (DIP): Available to fund publicly owned infrastructure and can be used by municipalities and counties to assist with the location or expansion of businesses. Usage of the funds must be directly related to the construction, renovation, or expansion of industry.
JOB PROTECTION GRANT PROGRAM: Available to fund “at risk” industries that have been operating in the state for at least three years and that have lost jobs or are at risk to lose jobs because such jobs have been outsourced. “Outsourced” means Mississippi jobs are being lost and relocated to industries in foreign countries. The funding can be used by “at risk” industries that retain jobs in MS and improve productivity.
ENERGY INVESTMENT LOAN PROGRAM: Provides loans to businesses that are increasing energy efficiency in their buildings, equipment and processes. Eligible industries include manufacturers, warehouses and distribution centers, research and development facilities, retail, telecommunications and data processing facilities and national or regional headquarters.
MINORITY BUSINESS MICRO LOAN PROGRAM: Provides loans to socially and economically disadvantaged minority and women owned businesses as designated by the Minority and Small Business Development Division of the MDA. Eligible uses of loan proceeds include inventory purchase, working capital, machinery and equipment.
RESEARCH & DEVELOPMENT LOAN PROGRAM: Available to provide loans to qualified companies designated by the MDA. R&D companies must be meet minimum criteria before they apply, including that at least 10 percent of the workers at the facility must be scientists, engineers or computer specialists and the average wage of all workers at the facility must be at least 150 percent of the state average annual wage. A basic health care plan must be provided to all employees.