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Mississippi Incentives and Workforce Development Guide

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Financing

Development Infrastructure Grant Program (DIP): The Development Infrastructure Program (DIP) provides grants or loans to finance infrastructure projects that promote economic growth throughout the state. Funding from this program can be used by municipalities and counties to assist with the location or expansion of businesses. The goal of the program is job creation. Typical industries eligible under this program include: manufacturers, warehouses and distribution centers, research and development facilities, telecommunications and data processing facilities and national or regional headquarters.

Job Protection Grant Program: The Mississippi Job Protection Program provides grants to at-risk industries to support job retention and to improve productivity and competitiveness. A company must qualify as an at-risk industry to receive assistance under the Job Protection Program. An at-risk industry is a company that has been operating in the state for not less than three consecutive years and is at risk due to foreign competition.

Energy Efficiency Revolving Loan Program: Provides loans to businesses that are increasing energy efficiency in their buildings, equipment and processes. Eligible entities that promote the development and demonstration of efficient, environmentally acceptable and commercially feasible technology and processes, and that also utilize Mississippi’s existing energy resources, public utilities and/or developing resources that foster economic growth may apply for the Energy Efficiency Revolving Loan Fund.

Tax Incentives

Advantage Jobs Incentive Program: The Advantage Jobs Incentive Program is a rebate program designed to encourage businesses that create new, high quality jobs to locate or expand in the state. Applicants must create at least 25 new jobs, and jobs must meet or exceed the average annual wage of the state or the county in which the company locates, whichever is lower. The Advantage Jobs Incentive Program provides for a rebate of 90% of Mississippi payroll taxes withheld to qualified employers for a period of up to 10 years.

Broadband Technology Tax Credit: An income tax credit based on a percentage of the cost of equipment used in the deployment of broadband technology is available.

Growth and Prosperity Program (GAP): Through the GAP Program, businesses that locate or expand in specific geographic areas of the state may receive state income tax, franchise tax and property tax exemptions for up to 10 years, as well as a sales and use tax exemption on all equipment and machinery purchased during initial construction or an expansion at an approved facility. Eligible industries include manufacturers, processors, distributors, wholesalers, research and development facilities which will create at least 10 jobs, and businesses must locate in GAP-designated counties. The program is designed to encourage development in economically challenged areas of the state.

Jobs Tax Credit: An income tax credit equal to a percentage of payroll for each newly created job is available for a five-year period for eligible businesses. A minimum number of jobs must be created to receive the credit. Companies can either use these credits or opt for a job training grant as a direct reduction of workforce training costs. Eligible industries include manufacturers, processors, distributors, wholesalers, research and development facilities, warehouses, air transportation and maintenance facilities, movie industry studios, telecommunication enterprises, data or information processing operations, computer software developers, any technology intensive facility, recreational facilities that impact tourism, and final destination or resort hotels with more than 150 guest rooms.

Manufacturing Investment Tax Credit: Existing manufacturers that have operated in Mississippi for at least two years and invest at least $1 million in additional buildings and/or equipment may be eligible for investment tax credits that can be applied to their state income tax liability. The credit is equal to 5% of the existing business’s additional investment in buildings and/or equipment, up to a maximum credit of $1 million. Credits can be used to offset up to 50% of the entity’s income tax liability after all other credits have been taken, and unused investment tax credits can be carried forward up to five years.

Mississippi Health Care Industry Zone Incentive Program: A sales and/or use tax exemption and accelerated 10-year state income tax depreciation deduction is available for a business enterprise certified by MDA as a Health Care Industry Zone Facility. Qualifying industries include healthcare industries with a minimum capital investment of $10,000,000 or that create a minimum of 25 new jobs. To be eligible, businesses must locate in Health Care Industry Zones within the state.

Mississippi Data Center Incentives: A sales and/or use tax exemption is available for a business enterprise certified by MDA as a data center. Eligible industries include businesses operating a data center with a minimum capital investment of $50,000,000 and creating at least 50 new, full-time jobs with an annual salary of at least 150% of the average annual wage.

Research and Development Skills Tax Credit: An income tax credit equal to $1,000 per year is available for a five-year period for any position requiring research or development skills. Any position requiring research or development skills may qualify.

Industrial Property Tax Exemption: Local governing authorities may grant businesses locating or expanding in their areas an exemption from property taxes on real and tangible personal property being used in the state for up to 10 years. The exemption may be granted for all local property taxes except school district taxes on any property and taxes on finished goods or rolling stock. The property tax exemption usually includes land, buildings, machinery, equipment, furniture, fixtures, raw materials and work in process.

Mississippi Aerospace Initiative Incentives Program: A 10-year income and franchise tax exemption and a sales and use tax exemption for the start-up of a new facility or expansion of an existing facility is available for businesses which manufacture or assemble products for use in the aerospace industry or that provide research and development or training services to the aerospace industry. The business must invest a minimum of $30,000,000 and create at least 100 new, full-time jobs in Mississippi.

Mississippi Clean Energy Initiative Program: A 10-year income and franchise tax exemption and a sales and use tax exemption for the start-up of a new facility or expansion of an existing facility is available to clean energy business enterprises that make a minimum capital investment of $50,000,000 and create 250 new, full-time jobs. The clean energy business enterprise must manufacture or assemble systems or components used in the generation of clean energy.

National or Regional Headquarters Tax Credit: An income tax credit is available for a five-year period for each position assigned to the national or regional headquarters of a business created in or transferred to Mississippi. Credits start at $500 for each new full-time employee, increasing to $1,000 for each new full-time employee whose salary is 125% of the average annual state wage and $2,000 for each new full-time employee whose salary is 200% of the average annual state wage. A minimum of 20 new headquarters jobs must be created to receive the credit.

National or Regional Headquarters Sales Tax Credit: A sales and/or use tax exemption is available to an eligible business that creates or expands its national or regional headquarters in Mississippi or transfers these operations to the state. The exemption is available for component materials used in the construction of or addition or improvement to a building and machinery and equipment for use in the facility. A minimum of 20 new headquarters jobs must be created to receive the credit.

Property Tax Exemption for Industrial Revenue Bond Financing: An exemption from property taxes on land, buildings and equipment is available and is valid for up to 10 years on property purchased with bond proceeds from industrial revenue 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. Any taxes paid become a direct credit to Mississippi income tax.

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.

Sales & Use Tax Exemption for Industrial Revenue Bond Financing: A full sales and use tax exemption is available on eligible purchases made by businesses that have obtained bond financing through the MBFC. All businesses using industrial revenue bonds issued through the Mississippi Business Finance Corporation (MBFC) may qualify for this exemption.

Sales & Use Tax Exemption for Construction or Expansion: A ½ to full sales and/or use tax exemption is available for the construction or expansion of certain businesses. The amount of the exemption depends on where in the state the business is located. Eligible businesses include manufacturers and custom processors, data/information enterprises and technology intensive enterprises.

Skills Training Income Tax Credit: An income tax credit equal to the expense of providing skills training to Mississippi employees is available. Manufacturers, processors, distributors, wholesalers, research and development facilities, warehouses, air transportation and maintenance facilities, movie industry studios, telecommunication enterprises, data or information processing operations, computer software developers, any technology intensive facility, recreational facilities that impact tourism, and final destination or resort hotels with more than 150 guest rooms.

Mississippi Motion Picture Production Incentive Program: The Mississippi Motion Picture Incentive Program provides a cash rebate on eligible expenditures and payroll and provides sales and use tax reductions on eligible rentals/purchases. This program is available for nationally distributed motion pictures, television programs, DVDs, documentaries, short films, commercials or computer or video games, including animation and production utilizing new technology. To be considered a nationally distributed film, a project must be intended for theatrical, broadcast, festival screening, streaming video or Internet delivery. There is a $50,000 minimum Mississippi investment (local spend) per project, as well as a $10 million per project rebate cap. There is a $20,000,000 annual rebate cap, as well. There is no minimum requirement for production days or required percentage of production spends.

A production is eligible for a 25% rebate of its base investment (local spend) in Mississippi. The base investment is determined by production expenditures in Mississippi. A production is eligible for a 30% cash rebate on payroll that is paid to resident cast and crew members whose wages are subject to Mississippi income tax withholding and for that portion of their salary for the project up to and including $5 million. A production is eligible for a 25% cash rebate on payroll paid to non-resident cast and crew members whose wages are subject to Mississippi income tax withholding and for that portion of their salary for the project up to and including $5 million. A production company may receive an additional rebate of 5% of the payroll paid for any employee who is an honorably discharged veteran of the United States Armed Forces. For purposes of this program, payroll means salary, wages or other compensation including related benefits paid to employees upon which Mississippi income tax is due and has been withheld.

Updated 1/16/15

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