Incentives

This program provides low-interest loans to finance projects for energy-conserving capital improvements and installation of renewable energy technology or equipment.  Funds are available up to $500,000 for demonstrated commercially feasible technologies and/or processes, including but not limited to HVAC upgrades, lighting retrofits and insulation improvements that contribute to increased building efficiency and reduced energy demand. To learn more about these energy programs, contact MDA’s Energy Division at 601.359.3449.

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.

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.

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.

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.

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.

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.

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.

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.