Mississippi Economic Redevelopment Act
The Mississippi Economic Redevelopment Act, administered by the Mississippi Development Authority (MDA), is a program designed to encourage economic development on and around environmentally contaminated sites.
Counties and/or municipalities that contain properties with environmental contamination may apply for approval for this incentive that allows all sales, income, and franchise taxes collected from businesses located in the redevelopment project area to be used to reimburse developers for approved cleanup costs.
Eligible Projects
A redevelopment project is an undertaking that combines remediation of a contaminated site that has been abandoned from a bankruptcy estate, along with development of that site. This development may be any type of permanent business, with the exception of gaming establishments.
Eligible Counties/Municipalities
To qualify, counties and/or municipalities must meet all of the following conditions:
- The contaminated site must be located within a Mississippi county and/or municipality.
- The redevelopment project area must be established by resolution of the county or municipality.
- Application to MDA must be made.
State Tax Incentives
The Mississippi Economic Redevelopment Act provides for sales, income, and franchise taxes paid by the business entities operating on the redeveloped property to be distributed to the developer to defray remediation costs.
Reimbursement
MDA, with the assistance of the State Tax Commission, will determine the amount of state taxes and fees collected from the business enterprises located and operating within a redevelopment project area. Reimbursement payments will be made semiannually, in January and July of each year. These payments are made on a graduated scale for up to ten years or until the maximum reimbursement amount is reached.