Incentives & Grants
Mississippi offers businesses locating or expanding in the state a number of tax incentives, including state income tax credits and sales, use and property tax exemptions.
Find Incentives
| Program Name | Description | Examples of Eligible Uses | More information |
|---|---|---|---|
| Community Development Block Grants (CDBG) Economic Development Program | The program available to fund publicly owned infrastructure. Funding can be used by municipalities and counties to assist with the location, expansion or retention of businesses. Usage of the funds must be directly related to the construction, renovation or expansion of industry. The program provides for a maximum state business grant amount per project of $20,000 per job or up to $2,500,000.
|
| |
| Community Development Block Grants (CDBG) for Public Facilities Projects | Mississippi’s CDBG Public Facilities Program provides municipalities and counties funding for public infrastructure needs. The program |
| |
| Development Infrastructure Grant Program (DIP) | “DIP provides grants to municipalities and counties to finance public infrastructure projects that promote economic growth in the state. Applicants must apply on behalf of a new or expanded industry, based on the public infrastructure needs of the project. The Development Infrastructure Grant Program provides for a maximum grant amount per project of $150,000. “ |
| |
| Economic Development Highway Grant Program (EDH) | Job creation and private investment are the goals of the Economic Development Highway Grant Program. The typical private investment requirement is $70 million. Municipalities and counties must apply on behalf of a new or expanded industry based on the public infrastructure needs of the project. |
| |
| Job Protection Grant Program | “The Job Protection Grant Program provides funding to “at risk” industries in the state to assist them in retaining jobs and improving their productivity. To be eligible, a business must have operated in the state for at least three years and have lost jobs or be at risk of losing jobs because such jobs have been relocated to industries in foreign countries. The program provides for a maximum grant amount per project of $200,000 provided that the existing industry matches the grant on a dollar for dollar basis. |
| |
| Job Training Grant | Companies locating or expanding in Mississippi that are eligible for the state’s Jobs Tax Credit may opt to either take that credit or monetize it to use for job training. For eligible companies who opt to monetize the credit, the State provides Job Training Grants to a community or junior college, university, or Workforce Investment Area in Mississippi to pay costs incurred in training or retraining that company’s employees. | ||
| Mississippi Rail Grant Program | The program provides grants to public and private railroads to finance railroad projects that promote economic growth and job creation in Mississippi. Eligible projects must identify specific repairs or improvements to a rail line that would make the line more competitive when providing services to industry in Mississippi. To learn more, contact MDA’s Financial Resources Division at 601.359.3552. |
| |
| Rural Impact Grant Fund | A Rural Community is defined as a municipality with a population of 10,000 or less or a county with a population of 30,000 or less according to the most recent federal decennial census at the time the application is submitted. The Rural Impact Fund Grant Program provides for a maximum grant amount of $150,000 per project. |
| |
| Site Development Grant Program | The Site Development Grant Program offers two unique programs to assist public or private nonprofit economic development organizations or local governments with developing site-ready locations to attract business development in the state. There are two levels of grant funding – up to $200,000 for large “Premier Sites” and up to $50,000 for smaller “Ready Sites.” |
| |
| Small Municipal and Limited Population Counties Grant Program | The Small Municipalities and Limited Population Counties Grant Program provides funds for publicly owned infrastructure for community-based projects. Funding from this program can be used by small municipalities (populations under 10,000) and counties (populations under 30,000) to assist with public facilities and infrastructure needs. |
| |
| Agribusiness Enterprise Loan Program (ABE) | The ABE Loan Program provides a percentage of low-cost state financing that is combined with a private financial lending institution’s loan proceeds to encourage loans to the agribusiness industry in the state. |
| |
| Airport Revitalization Revolving Loan Program | County and municipal airport authorities authorized to operate in Mississippi may apply for loans for the airport authority or on behalf of a new or expanded industry. For more information on Airport and Port Revolving Loans, contact MDA’s Financial Resources Division at 601.359.3552. |
| |
| Capital Access Contract Loan Program | The program is designed to increase the availability of financing for socially and economically disadvantaged businesses as designated by the U. S. Small Business Act. |
| |
| Capital Improvements Revolving Loan Program (CAP) | CAP provides loans to municipalities and counties to finance public infrastructure improvements in Mississippi. CAP Loan funds may be used by local governmental authorities in support of business location and expansion projects and other community-based projects. |
| |
| Energy Efficiency Revolving Loan Fund | Funding is available to eligible entities that promote the development and demonstration of efficient, environmentally acceptable and commercially feasible technology and processes that utilize Mississippi’s existing energy resources, public utilities and/or develop resources that foster economic growth. |
| |
| Energy Infrastructure Revolving Loan Program | The program provides loans to local units of government to help finance energy infrastructure projects to promote economic growth in Mississippi. |
| |
| Existing Industry Productivity Loan Program | Loan funds can be used to finance long-term fixed assets. This financing is for assets which, through new technology, will improve productivity and competitiveness of the company. The existing industry cannot reduce employment by more than 20% if it receives a loan. |
| |
| Freight Rail Service Revolving Loan Program | Increased rail usage and productivity is the goal of the Freight Rail Service Revolving Loan Program. County and municipal governmental authorities in Mississippi may apply for loans under this program. |
| |
| Minority Business Enterprise Loan Program (MBE) | The Minority Business Enterprise (MBE) Loan Program provides loans to socially and economically disadvantaged minority and women-owned businesses as designated by the Mississippi Development Authority’s Minority and Small Business Development Division. |
| |
| Minority Business Micro Loan Program | The Minority Business Micro Loan Program provides loans to socially and economically disadvantaged minority and women-owned businesses as designated by the Mississippi Development Authority’s Minority and Small Business Development Division. |
| |
| Minority Surety Bond Guaranty Program | The Minority Surety Bond Guaranty Program provides socially and economically disadvantaged minority |
| |
| Mississippi Alternative Fuel School Bus and Municipal Motor Vehicle Loan Program | The program provides local units of government and public school districts loan funds to purchase new alternative fuel vehicles (AFVs) |
| |
| Port Revitalization Revolving Loan Program | The Mississippi Port Revitalization Revolving Loan Program is available to provide loans to state, county, or municipal port authorities to assist with the location and expansion of businesses and for the improvement of port facilities. Eligible entities may apply for loans for the port or on behalf of a new or expanded industry. For more information on Airport and Port Revolving Loans, contact MDA’s Financial Resources Division at 601.359.3552. |
| |
| Small Business and Existing Forestry Industry Loan Program | The Small Business and Existing Forestry Industry Loan Program encourages the extension of conventional financing, along with the issuance of letters of credit by private institutions, to qualified enterprises in the state of Mississippi. Through this program, MDA provides low-interest loans to qualified small businesses or existing companies in the forestry industry. |
| |
| Small Business Loan Guaranty Program | The Small Business Loan Guaranty Program (SBLGP) provides access to capital for small businesses by providing loan guaranties to banks and other small business lenders. The SBLGP encourages lenders to make term loans or provide lines of credit to new or existing small businesses in a difficult credit environment to help with the development, expansion and retention of Mississippi’s small businesses. |
| |
| Appalachian Regional Commission (ARC) | MDA works collaboratively with local planning and development districts (PDDs), economic development organizations, local communities, and other state agencies in the development of eligible projects to address the needs in the 24 Mississippi ARC counties. |
| |
| Delta Regional Authority (DRA) | MDA works collaboratively with local planning and development districts (PDDs), economic development organizations, local communities and other state agencies in the development of eligible projects to address the needs in the 45 Mississippi DRA counties. |
| |
| Mississippi Business Finance Corporation (MBFC) | Local political entities have the authority to issue general obligation bonds for the purpose of acquiring publicly owned land, buildings, and infrastructure. |
| |
| Ad Valorem Exemption for Businesses in Growth and Prosperity (GAP) Areas | The program is an ad valorem tax exemption available for qualified business within a Growth and Prosperity (GAP) Area for a ten (10) year period. | ||
| Advantage Jobs Program | This incentive is available to eligible businesses that promise significant expansion of the economy through the creation of jobs. The average of all jobs included in the program must meet the minimum average wage requirements. The program provides for a rebate of a percentage of Mississippi payroll to employers for a period of up to 10 years. | ||
| Broadband Technology Tax Credit | Broadband Technology Tax Credits are credits that are provided to entities to encourage the deployment of high-speed internet access throughout the state, with an emphasis on rural areas. | ||
| Energy Performance Contracting | Energy Performance Contracting is an innovative financing package that uses savings from reduced energy consumption to repay the cost of installing energy conservation measures. A qualified Energy Service Company, or ESCO, guarantees a level of energy savings for a specified contract term sufficient to cover all project costs. To learn more about these energy programs, contact MDA’s Energy Division at 601.359.3449. | ||
| Fee in Lieu of Property Tax | Eligible businesses making certain investments in the state may be eligible to pay a fee in lieu of property taxes for a period of up to thirty years. Fee in lieu agreements are negotiated between the eligible company and local governmental authorities. | ||
| Franchise Tax Exemption for Aerospace Businesses | Aerospace businesses that locate or expand in Mississippi, create at least 100 full-time jobs and make an investment of at least $30 million in the state may receive a franchise tax exemption and other tax incentives through the Mississippi Aerospace Initiative Incentives Program. | ||
| Franchise Tax Exemption for Businesses in Growth and Prosperity (GAP) Areas | The Growth and Prosperity (GAP) Program provides for a franchise tax exemption to companies that locate or expand in areas of Mississippi designated as GAP counties. | ||
| Franchise Tax Exemption for Clean Energy Businesses | Mississippi’s Clean Energy Initiative Incentives Program provides a franchise tax exemption and other tax incentives to companies that manufacture systems or components used to generate clean, renewable or alternative energy and create at least 250 full-time jobs and invest a minimum of $50 million in Mississippi. | ||
| Free Port Warehouse Property Tax Exemption | A full exemption from property taxes may be granted by local governing authorities on personal property that is being held and stored prior to transport to a final destination outside the state. The exemption may be granted for all local property taxes and may be granted for any period of time set by the local governing authority. | ||
| Growth and Prosperity Program (GAP) | The program designates specific counties as GAP counties and provides income, franchise, sales and property tax incentives to companies that locate or expand in these areas of the state. | ||
| Jobs Tax Credit | This program provides credits that can be applied to state income tax to reduce an employer’s income tax liability. The credits are earned by certain types of businesses that create and sustain new jobs in Mississippi. | ||
| 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% of the eligible investment for a project. |
| |
| Mississippi Aerospace Initiative Incentives Program | Mississippi’s Aerospace Initiative Incentives program provides corporate 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. | ||
| Mississippi Clean Energy Initiative Program | The Mississippi 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 and use tax exemption to establish a plant or expand an existing production facility. | ||
| Mississippi Equity Investment Tax Credit (State New Markets Tax Credit) | A credit to Mississippi income or insurance premium tax is available for eligible investments made by Community Development Entities (CDEs) in designated low income census tracts in the state, as defined by the U.S. Census Bureau. These credits are state credits that act as companion credits to the Federal New Markets Tax Credits (NMTC) Program. | ||
| Mississippi Health Care Industry Zone Incentive Program | The Mississippi Health Care Industry Zone Incentive aims to increase the number of health care jobs in the state and expand access to high-quality medical care for Mississippi residents by encouraging health care-related businesses to locate or expand in Health Care Zones in the state. The program provides eligible businesses with 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, the program allows counties and cities, at their discretion, to grant a property tax “fee in lieu” for 10 years for any certified project with an investment of more than $10 million or a 10-year ad valorem tax exemption. | ||
| Mississippi Tourism Rebate Program | The Mississippi Tourism Rebate Program provides a tax rebate to qualified applicants of new tourism-oriented projects within the state of Mississippi. The Mississippi Tourism Rebate Program allows a portion of the sales tax paid by visitors to the eligible tourism-oriented enterprise to be paid to the applicant to reimburse the applicant for eligible costs incurred during the construction of the project. | ||
| Motion Picture Production Tax Incentive Program | The Motion Picture Production Incentive is a cash rebate program designed to encourage production of motion pictures in Mississippi. This corporate tax incentive is designed to return a portion of the qualified expenses incurred in the state back to the production company. Production companies must be certified by the Mississippi Development Authority to have filed income taxes in the state in the past three years and filmed at least two motion pictures in the state in the past 10 years. | ||
| National or Regional Headquarters Sales Tax Exemption | A sales and use tax exemption is available for eligible businesses that create their national or regional headquarters in Mississippi, transfer their headquarters to the state or grow their existing headquarters operations in the state. This exemption applies to component building materials used in the construction or improvement of a facility, as well as the machinery and equipment used in the facility. A minimum of 20 new headquarters jobs must be created at the location in order for a business to qualify for this exemption. | ||
| National or Regional Headquarters Tax Credit | National or Regional Headquarters Tax Credits are credits equal to between $500 and $2,000 per position that can be applied to state income tax to reduce an eligible entity’s corporate income tax liability. These credits are awarded to encourage companies to establish a headquarters in Mississippi and have their executive officers and other high-level employees based in the state. These credits are also awarded to companies that already have headquarters in Mississippi and create additional jobs at their headquarters operations in the state. | ||
| On-the-Job Training (OJT) Reimbursement | OJT reimbursements can help offset training costs for new employees, depending on their wages and the length of training. The community college and/or WIN Job Center will work with the company to develop and negotiate a training and service plan and funding agreement. | ||
| 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. | ||
| 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 | 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 Fee in Lieu | For new or expansion projects in the state that have a private capital investment in excess of $100,000,000, a negotiated fee can be set that is paid in place of the standard property tax levy. This incentive is provided to encourage development with local communities and must be agreed to by the local board of supervisors and municipal authorities prior to being awarded. | ||
| Rebate on Research and Development Costs | The Strengthening Mississippi Academic Research Through (SMART) Business Act Program defrays the research and development costs of companies that operate in Mississippi and partner with a state institution of higher learning. Under this program, a corporation that collaborates with a state university for research and development purposes, including energy-related research, is eligible for a 25-percent rebate of the total research costs. This program is administered by the Mississippi Institutions of Higher Learning (IHL). To learn more, contact IHL at 601.432.6264 or by email smartbusact@mississippi.edu. | ||
| Reduced Sales Tax Rate on Electricity used in Enhanced Oil Recovery | Companies producing oil and gas in the state using carbon dioxide as a method of enhanced oil recovery (EOR) receive a reduced sales tax rate on electricity and fuel used in production. |
| |
| Reduced Severance Tax Rate for Horizontally Drilled Wells | This incentive provided a reduced severance tax rate of 1.3 percent for oil and gas extracted from horizontally drilled wells The reduced rate is available for a period of 30 months or until payout of the well and applies to all qualified horizontally drilled wells between July 1, 2013, and June 30, 2018. For more information about these incentives or to learn more about incentives available to businesses in Mississippi, contact MDA’s Financial Resources Division at 601.359.3552. | ||
| Research and Development Skills Tax Credit | Research and Development Skills Tax Credits are credits equal to $1,000 per employee per year for a five-year period that can be used to reduce an eligible entity’s income tax liability. These credits are available for any position requiring research or development skills. | ||
| Rural Economic Development Income Tax Credit | Rural Economic Development (RED) Credits are credits that can be used to reduce Mississippi corporate income tax. These credits are created based on the amount of bond-related debt service paid on industrial revenue bonds issued by the Mississippi Business Finance Corporation (MBFC). | ||
| Sales and Use Tax Exemption for Aerospace Businesses | Aerospace businesses that locate or expand in Mississippi and create at least 100 full-time jobs and make an investment of at least $30 million in the state may receive a sales and use tax exemption and other tax incentives through the Mississippi Aerospace Initiative Incentives Program. | ||
| Sales and Use Tax Exemption for Broadband Technology | A sales and use tax exemption is available for eligible telecommunications businesses that deploy broadband technology. The amount of exemption that is allowed is based on the location of the facility. | ||
| Sales and Use Tax Exemption for Businesses in Growth and Prosperity (GAP) Areas | The Growth and Prosperity (GAP) Program provides for a sales and use tax exemption to companies that locate or expand in areas of Mississippi designated as GAP counties. | ||
| Sales and Use Tax Exemption for Clean Energy Businesses | Mississippi’s Clean Energy Initiative Incentives Program provides a sales and use tax exemption and other tax incentives to companies that manufacture systems or components used to generate clean, renewable or alternative energy and create at least 250 full-time jobs and invest a minimum of $50 million in Mississippi. | ||
| Sales and Use Tax Exemption for Construction or Expansion | A sales and use tax exemption is available for eligible businesses that construct a new facility or expand an existing facility in the state. | ||
| Sales and Use Tax Exemption for Data Center Enterprises | Mississippi provides data centers with a sales and use tax exemption for all new and replacement computing equipment and software. Data centers must invest at least $50 million and must create at least 50 new jobs paying 150 percent of the average state wage to qualify for this program. | ||
| Sales and Use Tax Exemption for Headquarters | A sales and use tax exemption is available for eligible businesses that create their national or regional headquarters in Mississippi, transfer their headquarters to the state or grow their existing headquarters operations in the state. This exemption applies to component building materials used in the construction or improvement of a facility, as well as the machinery and equipment used in the facility. A minimum of 20 new headquarters jobs must be created for a business to qualify for this exemption. | ||
| Sales and Use Tax Exemption for Industrial Revenue Bond Financing | To encourage construction and expansion within the state, the Mississippi Business Finance Corporation may issue industrial revenue bonds 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 Tax Exemption on Energy used in Manufacturing | While Mississippi boasts energy costs around 20 percent below the national average, the state now exempts energy used in manufacturing from sales tax, further cutting the costs of one of the key drivers companies consider when choosing a location for new investment. | ||
| Sales Tax Reduction for Motion Picture Production | A sales and use tax reduction is available for qualified motion picture production companies on purchases and rentals used in the production of a nationally distributed feature-length film, video, television series or commercial made in Mississippi. At least 20 percent of production crew of an eligible production must be Mississippi residents. | ||
| Skills Training Income Tax Credit | Skills training tax credits are credits that 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. | ||
| Standard Property Tax Exemption | An exemption from property taxes is available to eligible industries that locate or expand in the state. This 10-year exemption from property taxes may be granted by local governing authorities on real and tangible personal property being used 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. |
Financial Assistance can also be obtained from the following sources: