MISSISSIPPI INCENTIVES 

Mississippi shows an average deal value of $2.38 million with 115 new jobs created per deal

JOBS TAX CREDIT

The Jobs Income Tax Credit is a credit that is available to businesses that increase employment by a specified minimum amount, which is location dependent. It is not available to businesses that move from one location within the state to another location within the state without increasing employment.

 The amount of the credit is based on the number of new jobs created and the county where the jobs are created. The less developed a county is, the fewer number of jobs needed to establish a minimum and the greater the percentage of payroll is for each created job. The credit is good for a period of five (5) years. The credit may be used in combination with any of the other credits made available for a project; however, the total of the Jobs Tax Credit is limited to 50% of the income tax liability attributable to the income derived from operations in the state for the respective year. Any credit claimed but not used in a taxable year may be carried forward for five (5) years.

 Each year the MSTC ranks the counties in Mississippi as Tier Three (less developed), Tier Two (moderately developed), and Tier One (developed). The counties are evaluated and ranked based on the unemployment rate and per capita income of each county. They are then divided into the three previously mentioned groups with one-third of the counties in each group. This ranking is used to determine the minimum number of jobs a business must create in a given year before it qualifies for the credit and the amount of credit per job allowed. The ranking for a specific county can change from year to year based on this evaluation. The amount of Jobs Tax Credit per employee and the job levels for each county ranking are as follows:

 

The number of jobs must be created within one (1) year and is measured at the end of the fiscal year. Jobs cannot be accumulated over several years. The credit is available for each net new full-time job created as long as the minimum number has been achieved and maintained. The credit is for full-time positions only. A business cannot combine part-time jobs to add up to a full-time job. The credit is based on filled positions and the employees must be employed in the state and subject to Mississippi Withholding Tax.

The credit is not refundable. It can only be used to offset the income tax liability. Any excess credit amount can be carried forward for up to 5 years from the original year in which the excess credit could not be used. It is more advantageous to use the oldest year's unexpired credit first.  

A business may begin taking the credit each fiscal year for 5 years beginning in years 2 through 6 after the creation of the jobs. The year the jobs are created is Year 1.  The Jobs Tax Credit is earned at a given level of employment for one five (5) year period. If, after qualifying for one five (5) year period, the business increases the number of jobs substantially enough to qualify again for another five (5) year period, they may apply for a second five (5) year period. Each five (5) year period is accounted for separately.

ADVANTAGE JOBS PROGRAM

Qualified employers may receive a rebate of a percentage of state payroll for up to 10 years provided wage, location and benefit requirements are met. The amount of the rebate is equal to 90% of the actual state income taxes withheld from employees.

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.
 
In transferring or establishing a national or regional headquarters in Mississippi or in expanding existing headquarters operations in the state, a company must create a minimum of 20 qualified jobs within a one-year period to be eligible for the National or Regional Headquarters Tax Credit.

 An entity can utilize these credits in addition to Jobs Tax Credits, and the combination of the two tax credits can be used to offset up to 50 percent of the entity’s state income tax liability. Any unused credits can be carried forward up to five years.

SKILLS TRAINING INCOME TAX CREDITS

The Skills Training Income Tax Credit is an incentive for a business to offer training to their Mississippi employees. For expenses to qualify for the Skills Training Credit, the training program must be offered by, or be approved by, the community or junior college in the district where the business is located, but the training does not have to be held on the community or junior college campus to qualify for the credit. The training offered must enhance skills related to the job that the employee is performing, improve job performance, or relate to a career path that is anticipated for the employee. Life enrichment type training does not qualify. Pre-employment training that involves skills training may be eligible for the credit, but it must be directly related to the employment of these individuals.

The Skills Training Tax Credit can be used in combination with any other credit. The credit equals fifty percent (50%) of the amount of expenses the business incurs in that training. The credit is allowed up to 50% of the income tax liability attributable to the income derived from the operations in Mississippi for that year. The amount of training credit cannot exceed $2,500 per Mississippi employee per year. The credit is not refundable. It can only be used against the income tax liability. Any excess credit amount can be carried forward for up to 5 years from the original year in which the excess credit could not be used. It is more advantageous to use the oldest year's unexpired credit first.

OTHER MISSISSIPPI INCENTIVE PROGRAM

  • Growth and Property Program
  • Research and Development Skills Tax Credit
  • Mississippi Motion Picture Production Incentive Program
  • Development Infrastructure Grant Program (DIP)
  • Job Protection Grant Program
  • Energy Efficiency Revolving Loan Program
  • Broadband Technology Tax Credit
  • Manufacturing Investment Tax Credit
  • Mississippi Health Care Industry Zone Incentive Program
  • Mississippi Data Center Incentives
  • Industrial Property Tax Exemption
  • Mississippi Aerospace Initiative Incentives Program
  • Mississippi Clean Energy Initiative Program
  • Property Tax Exemption for Industrial Revenue Bond Financing
  • Property Tax Exemption on In-State Inventory
  • Property Tax Exemption for Broadband Technology
  • Sales & Use Tax Exemption for Industrial Revenue Bond Financing
  • Sales & Use Tax Exemption for Construction or Expansion