Tax Exemptions, Incentives and Credits

The following documents explain the various corporate tax incentives, exemptions and credits which are available for industries and businesses operating in the state.

Loan Programs Program Facts
Advantage Jobs Program The Advantage Jobs Incentive Program provides for a rebate of a percentage of Mississippi payroll to qualified employers for a period of up to 10 years. This incentive is available to 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.
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.
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)
This program is designed to encourage development in economically challenged areas of the state. 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.
Industrial 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.
Jobs Tax Credit Jobs 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 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.
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.
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.
Mississippi Data Center Incentives The State of Mississippi provides a state sales tax exemption for all computing equipment and software used by companies certified as data centers by the Mississippi Development Authority. Both new and replacement equipment qualify for the tax exemption.
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 Act aims to expand access to high-quality medical care for Mississippi residents and increase the number of health care jobs in the state. The legislation created a business incentive program, known as the Mississippi Health Care Industry Zone Incentive Program, to encourage health care-related businesses to locate or expand within a qualified Health Care Zone in the state.
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.
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.
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 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
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.
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 and 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 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 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 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 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.
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.
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.

For information about Mississippi's tax structure and business tax incentives, select Mississippi Tax Summary.