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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. The following businesses qualify for these credits:
In addition, the following businesses qualify upon receiving a designation by the Mississippi Development Authority:
Program Facts
Jobs Tax Credits are calculated as a percentage of eligible payroll each year for five years, based on job location and wages subject to state income tax. The credits are taken in years two through six after the new jobs are created.
To be eligible for this credit, the employer must create and maintain an annual average employment of the minimum number of jobs required based on the development ranking of the county.
County Classification Jobs Credit Amount
Tier III 10 or more 10% of Payroll
Tier II 15 or more 5% of Payroll
Tier I 20 or more 2.5% of Payroll
Credits can be used to offset up to fifty percent of the entity’s income tax liability, and unused jobs tax credits can be carried forward up to five years.
For further details, see the Mississippi Tax Incentives, Exemptions, and Credits on the Mississippi Department of Revenue website http://www.dor.ms.gov/docs/policy_incentivebookfinal.pdf, or Section 57-73-21, Ms Code 1972, Annotated. To request these documents or for assistance, contact the Mississippi Department of Revenue at 601.923.7044 or the Financial Resources Division at financial@mississippi.org or 601.359.3552.
