MFLEX – Mississippi Flexible Incentive Plan

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Easy, streamlined tax credits with MFLEX

Mississippi’s new tax incentive, the Mississippi Flexible Tax Incentive (MFLEX), is a streamlined universal tax credit that may be used to offset a company’s Mississippi state tax liabilities.

MFLEX is designed to better meet the needs of new and expanding businesses by offering more flexibility than the state’s current tax incentive offerings, and businesses applying for MFLEX will appreciate the simplicity of the application process. MFLEX eliminates the need for multiple applications for incentive programs, and it provides greater transparency to companies and state stakeholders regarding the value of credits awarded.

  • Flexible incentive tailored to meet your company’s needs
  • Streamlined credit to apply to your tax liability
  • One stop application with the Mississippi Development Authority

MFLEX process

Who can apply?

New companies locating in Mississippi and existing businesses looking to create new jobs and investment in the state are eligible. Planned capital investment must exceed $2.5 million and a company must create more than 10 jobs to qualify.

Eligible industries include:

  • Manufacturers
  • Warehouse and/or distribution businesses
  • Research & development facilities
  • Regional or national headquarters
  • Air transportation and/or maintenance facilities
  • Data & information processing centers
  • Technology-intensive enterprises
  • Telecommunications enterprises
  • Data centers

FAQs

How is MFLEX calculated?

The MFLEX credit is calculated based on a project’s investment in manufacturing and/or non-manufacturing equipment and its construction costs, the number of net new full-time jobs expected to be created and the project’s average annual wages.

Annual reporting to validate a project’s job and investment performance is required. Credits will be adjusted annually based on the company’s actual investment, new jobs created and wages paid.

How can my company use MFLEX?

Eligible companies can use this credit against a variety of tax liabilities, including state income, franchise and sales and use taxes and the withholding tax employers are required to withhold from employee wages. The program is intended to allow the greatest flexibility for companies to meet their individualized needs.

Can my company pursue other incentives if we choose to utilize MFLEX as well?

Companies may choose to utilize the state’s traditional tax incentives offerings or the MFLEX credit. Discretionary incentives will be considered independently based on project needs and may be offered on a case-by-case basis.

What is the process to apply for MFLEX?

A company will make application to the Mississippi Development Authority, which will review and certify the project. Credits issued on the MDA certificate can be claimed on income, franchise, sales and use or withholding tax returns filed with the Mississippi Department of Revenue.

Can the credit carry forward to later years?

Any awarded credit may be claimed over a period of 10 years.

Can the credit apply to property taxes?

No. The credit can only apply to your state tax liabilities. Property taxes are levied at the local level in Mississippi, and local authorities continue to have the ability to award property tax exemptions, at their discretion.

Contact

Ready to see where MFLEX and Mighty Mississippi can take you? Contact the Mississippi Development Authority to learn more.

Director of Business Incentives
Sara Watson
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