For qualifying companies, the State of Mississippi and local units of government provide an array of incentives for companies engaged in manufacturing and distribution. The incentives include but are not limited to jobs tax credits, sales and use tax exemptions, the advantage jobs incentive program, property tax exemptions, and the freeport warehouse property tax exemption. Other incentives may apply.
Mississippi’s Aerospace Initiative Incentive Program
Mississippi’s Aerospace Initiative Incentive 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.
In addition to this program, aerospace companies qualify for traditional tax incentives as outlined above under general manufacturing/distribution.
Mississippi’s Clean Energy Initiative Program
Mississippi’s Clean Energy Initiative Program allows the Mississippi Development Authority 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.
In addition to this program, clean energy companies may receive traditional statutory incentives outlined under general manufacturing/distribution.
Mississippi’s Data Center
Mississippi’s Data Center Initiative provides a state sales tax exemption for all computing equipment and software used by companies certified as data centers by the Mississippi Development Authority. 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.
In addition to this program, data center companies may receive additional incentives geared towards information technology companies.
Customer Service/Call Center/IT Companies
For qualifying companies, the State of Mississippi and local units of government provide an array of incentives for customer service/call centers and other information technology companies. The incentives include but are not limited to the jobs tax credit, sales and use tax exemption, the advantage jobs incentive program, and property tax exemptions.
Click the following link for an executive summary of key incentives for Customer Service/Call Center/IT Related Companies.
National or Regional Headquarters Tax Incentives
The National or Regional Headquarters Tax Incentives are credits 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 thirty-five qualified jobs within a one year period.
In addition to this tax incentive, national or regional headquarters may receive additional tax incentives that can be used in conjunction with the program such as property tax exemptions, sales and use tax exemption, advantage jobs rebate program and jobs tax credit. See attachment for more details.
Mississippi Health Care Industry Zone Act
Mississippi’s Health Care Industry Zone Act allows the Mississippi Development Authority to certify companies that engage in activities such as: medical supply, biologics, laboratory testing, medical product distribution, diagnostic imaging, biotechnology, pharmaceutical research and development, medical service providers, nursing and assisted living facilities, and medical equipment or medicine production and related manufacturing. The certification requires a minimum investment of $10,000,000 or must create 25 new full-time jobs.
The incentives include an accelerated, 10-year state income tax depreciation deduction; and a sales tax exemption for equipment and materials purchased from the date of the project’s certification until three months after the facility is completed.
In addition to these incentives, companies that are certified may receive additional incentives.
See guidelines for more details.