As part of his Energy Works: Mississippi’s Energy Roadmap plan, Governor Phil Bryant recently signed into law landmark legislation that positions Mississippi as a leading destination for energy-related economic development. These sensible forward-thinking approaches to energy policy also position Mississippi as a state that welcomes a diverse mix of investment in the energy sector.
Sales Tax Exemption on Energy for Manufacturing +
Exempts sales tax on energy used in manufacturing. While Mississippi boasts energy costs around 20 percent below the national average, HB 844 further cuts the costs of one of the key drivers companies consider when choosing a location for new investment. Manufacturing comprises a large portion of Mississippi’s economy, and advanced manufacturing and onshoring are key target sectors for the State.
Energy Infrastructure Revolving Loan Fund+
Gives Mississippi communities the ability to help finance energy infrastructure (for instance, gas lines and transmission lines) for companies that invest more than $50 million in an economic development project. This law provides the State a new low-interest financing tool to help companies locate or expand in Mississippi.
Sales Tax Reduction on Electricity for Enhanced Oil Recovery+
Decreases the sales tax paid on electricity to 1.5 percent for oil and gas produced in the state using carbon dioxide as a method of enhanced oil recovery (EOR). Existing Mississippi EOR policy is considered by many to be the best in the nation, and the passage of HB 841 will further improve our position and help to grow this industry in our state.
Rebate on Research and Development Costs+
Defrays the research and development costs of companies that operate in Mississippi and partner with a state institution of higher learning. Under this new law, 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 law will assist companies looking to tap into the wealth of energy expertise and resources available in Mississippi’s research institutions.
Energy Sustainability and Development Act+
Codifies MDA’s Energy and Natural Resource Division, which will work to promote Mississippi as a leader in energy development, job creation and research. In addition, the act mandates that state agencies work with MDA and DFA to develop energy management plans and report usage in order to lower costs and conserve energy.
Severance Tax Reduction for Horizontally Drilled Wells+
Reduces the severance tax to 1.30% for oil and gas extracted from horizontally drilled wells for a period of 30 months or until payout of the well. The legislation applies to all qualified horizontally drilled wells between July 1, 2013 and June 30, 2018.
Enhanced Building Codes for State Owned Buildings+
Requires that all major facility projects overseen by DFA for State-owned buildings must be constructed to the American Society of Heating, Refrigerating and Air-Conditioning Engineers 2010 standard. These standards help increase our State-owned buildings to be more energy efficient.
Energy Efficiency Standards for Commercial Buildings+
Increases the energy code standard for commercial buildings to meet the 2010 standard as created by the American Society of Heating, Refrigerating and Air-Conditioning Engineers. Mississippi ranks 51st among states for its energy efficiency. Combining HB 1281 with HB 1266 helps move us in the right direction for becoming more energy efficient. Mississippi is the first state in the Southeast to adopt this code standard for commercial buildings and public facilities.
Alternative Fuel School Bus and Municipal Motor Vehicle Revolving Loan Program+
The Mississippi Alternative Fuel School Bus and Municipal Motor Vehicle Revolving Loan Program provides public school districts and municipalities with loans to cover 100 percent of the incremental cost of purchasing alternative fuel vehicles (AFVs) and related systems or of converting existing vehicles to accept alternative fuels, whether propane gas, compressed natural gas or liquefied natural gas.