Mississippi Tax Commission

Mississippi Tax Incentives, Exemptions and Credits

Revised and Effective November 1, 2019 Website: dor.

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MS Tax Incentives

November 2019

A. INCOME TAX INCENTIVES...............................................................................................7

A.1. JOBS TAX CREDIT...................................................................................................................................... 9 A.2. NATIONAL OR REGIONAL HEADQUARTERS TAX CREDIT ............................................................................... 16

NATIONAL OR REGIONAL HEADQUARTERS RELOCATION TAX CREDIT ........................................................... 16 A.3. RESEARCH AND DEVELOPMENT SKILLS TAX CREDIT ................................................................................... 19 A.4. SKILLS TRAINING TAX CREDIT................................................................................................................... 21 A.5. MBFC RURAL ECONOMIC DEVELOPMENT (RED) BOND TAX CREDIT........................................................... 24 A.6. AD VALOREM TAX CREDIT....................................................................................................................... 26 A.7. EMPLOYER PROVIDED DEPENDENT CARE TAX CREDIT ............................................................................... 33 A.8. EXPORT PORT CHARGES TAX CREDIT ....................................................................................................... 35 A.9. IMPORT PORT CHARGES TAX CREDIT ....................................................................................................... 36 A.10. AIRPORT CARGO CHARGES TAX CREDIT ................................................................................................. 37 A.11. INCOME TAX EXEMPTION FOR GROWTH AND PROSPERITY (GAP) AREAS ................................................... 38 A.12. BROADBAND TECHNOLOGY TAX CREDIT .................................................................................................. 42 A.13. MANUFACTURING INVESTMENT TAX CREDIT............................................................................................. 44 A.14. MISSISSIPPI EQUITY INVESTMENT (NEW MARKETS) TAX CREDIT................................................................ 46 A.15. INCOME TAX EXEMPTION FOR CLEAN ENERGY BUSINESS ENTERPRISES .................................................... 48 A.16. INCOME TAX EXEMPTION FOR AEROSPACE INDUSTRY ENTERPRISES.......................................................... 52 A.17. INCOME TAX EXEMPTION FOR DATA CENTER ENTERPRISES ...................................................................... 56 A.18. ENTERTAINMENT DISTRICT INCENTIVE ..................................................................................................... 60 A.19. HEALTH CARE INDUSTRY ZONE INCENTIVE............................................................................................... 63 A.20. HISTORIC REHABILITATION INCOME TAX CREDIT ...................................................................................... 65 A.21. QUALIFYING CHARITABLE ORGANIZATIONS TAX CREDIT........................................................................... 67

QUALIFYING FOSTER CARE CHARITABLE ORGANIZATIONS TAX CREDIT ..................................................... 67 A.22. ELIGIBLE CHARITABLE BUSINESS CONTRIBUTION TAX CREDIT.................................................................. 70

B. FRANCHISE TAX INCENTIVES ......................................................................................73

B.1. FRANCHISE TAX EXEMPTION FOR GROWTH AND PROSPERITY (GAP AREAS)................................................ 75 B.2. BROADBAND TECHNOLOGY TAX CREDIT .................................................................................................... 79 B.3. FRANCHISE TAX EXEMPTION FOR CLEAN ENERGY BUSINESS ENTERPRISES ................................................. 81 B.4. FRANCHISE TAX EXEMPTION FOR AEROSPACE INDUSTRY ENTERPRISES ...................................................... 86 B.5. FRANCHISE TAX EXEMPTION FOR DATA CENTER ENTERPRISES................................................................... 91

C. SALES / USE TAX INCENTIVES.....................................................................................95

C.1. SALES / USE TAX EXEMPTION FOR CONSTRUCTION OR EXPANSION ............................................................. 97 C.2. SALES / USE TAX EXEMPTION FOR TRANSFER OF NATIONAL OR REGIONAL HEADQUARTERS ......................... 99 C.3. SALES / USE TAX EXEMPTION FOR BOND FINANCING................................................................................ 101 C.4. SALES / USE TAX EXEMPTION FOR BUSINESSES IN GROWTH AND PROSPERITY (GAP) AREAS ..................... 104 C.5. SALES / USE TAX EXEMPTIONS FOR BROADBAND TECHNOLOGY................................................................ 106 C.6. SALES / USE TAX EXEMPTION FOR CLEAN ENERGY BUSINESS ENTERPRISES ............................................. 108 C.7. SALES / USE TAX EXEMPTION FOR AEROSPACE INDUSTRY ENTERPRISES .................................................. 111 C.8. SALES / USE TAX EXEMPTION FOR DATA CENTER ENTERPRISES ............................................................... 114 C.9. SALES / USE TAX EXEMPTION FOR BUSINESSES IN HEALTH CARE INDUSTRY ZONES ................................... 116

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MS Tax Incentives

November 2019

D. REBATE INCENTIVE PROGRAMS .............................................................................. 119

D.1. ADVANTAGE JOBS INCENTIVE PROGRAM (ADVANTAGE JOBS) .................................................................... 121 D.2. SALES / USE TAX REBATE FOR TOURISM (MISS.CODE ANN. SECTION 57-26-1 ET SEQ.) ............................. 125 D.3. SALES / USE TAX REBATE FOR TOURISM (MISS. CODE ANN. SECTION 57-28-1 ET SEQ.)............................. 127 D.4. MOTION PICTURE PRODUCTION INCENTIVE .............................................................................................. 129 D.5. SMART BUSINESS REBATE ................................................................................................................... 133 D.6. ECONOMIC REDEVELOPMENT ACT .......................................................................................................... 134

E. PROPERTY TAX INCENTIVES ..................................................................................... 137

E.1. INDUSTRIAL EXEMPTIONS ....................................................................................................................... 139 E.2. FREE PORT WAREHOUSE EXEMPTION ..................................................................................................... 141 E.3. AD VALOREM EXEMPTION FOR GROWTH AND PROSPERITY (GAP) AREAS .................................................. 142 E.4. AD VALOREM EXEMPTION FOR BROADBAND TECHNOLOGY EQUIPMENT...................................................... 143

F. APPENDICES................................................................................................................ 145

F.1. DEFINITIONS .......................................................................................................................................... 147 F.2. CONTRACTOR'S TAX .............................................................................................................................. 149 F.3. COUNTY TAX ASSESSOR OFFICES AND TAX COLLECTORS......................................................................... 151 F.4. COUNTY RANKINGS BY YEAR.................................................................................................................. 153

2019 .................................................................................................................................................... 155 2018 .................................................................................................................................................... 156 2017 .................................................................................................................................................... 157 2016 .................................................................................................................................................... 158 2015 .................................................................................................................................................... 159 2014 .................................................................................................................................................... 160 2013 .................................................................................................................................................... 161 2012 .................................................................................................................................................... 162

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MS Tax Incentives

November 2019

Mississippi Tax Incentives, Exemptions and Credits

Mississippi is committed to encouraging businesses to establish or expand businesses and increase the employment of individuals in the State. To help businesses, Mississippi has authorized several tax incentives, including tax exemptions, rebates and credits. These incentives will give an economic benefit to those businesses which are eligible. Some incentives have a greater financial benefit when locating in a lesser developed county. Other incentives give greater benefits when employing the more technical positions or the more highly compensated positions in Mississippi.

Most of the incentives require advanced approval either by the Mississippi Development Authority (referred to from this point forward as MDA), the Mississippi Business Finance Corporation (referred to from this point forward as MBFC) or by the Mississippi Department of Revenue (referred to from this point forward as MDOR) or by local governing authorities (referred to from this point forward as County or City) or a combination. In this book, the incentives, exemptions and credits are grouped by the tax type.

Compliance with the equal pay provisions of the federal Equal Pay Act of 1963, the Americans with Disabilities Act of 1990 and the fair pay provisions of the Civil Rights Act of 1964 is required for any entity applying for a job based incentive authorized by Mississippi Code.

Each incentive, whether exemption, rebate or credit, will have a description, the types of businesses eligible for the incentive, and what is required to claim the incentive. Also included are the code sections that authorize the specific incentive. All references to the code sections will be attributed to the Mississippi Code Annotated, as amended (referred to from this point forward as Miss. Code Ann.). You can locate the code sections at the following web site .

IMPORTANT!!! Detailed records must be maintained on any information used to calculate any incentive benefit.

These records may be requested to be presented to a representative of the MDOR upon audit or to be attached to a specific application or tax return. If adequate records are not available to verify exemptions, rebates, credits or other incentive benefits, the incentive may be revoked. Also, if any material omission or misstatement of fact or fraudulent representation is revealed after an economic incentive has been approved, the incentive may be revoked. Any financial benefit as a result of either of the two situations mentioned above may be required to be paid back to the state.

References will be made to various state agencies throughout this book. The agency and the abbreviated reference, along with their associated web site, are listed below. These abbreviated references will be consistent while you read the different incentive opportunities available to businesses in Mississippi.

Mississippi Development Authority Mississippi Business Finance Corporation Mississippi Department of Revenue Mississippi Secretary of State Mississippi Department of Employment Security Mississippi Department of Archives and History

(MDA) (MBFC) (MDOR) (MSOS) (MDES) (MDAH)

dor. sos. mdes. mdah.

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