Mississippi Incentives

Grant Programs

State Grant Programs Program Facts Examples of Eligible Projects

CDBG Program
for Economic Development

Municipalities and counties must apply on behalf of industry based on the public infrastructure needs of the project. The Community Development Block Grant Program (Economic Development) provides for a maximum state business grant amount per project of $20,000 per job or up to $2,500,000.
  • Drainage systems
  • Water and sewer systems
  • Roads, bridges, and rail spurs
  • Buildings (rehabilitation / expansion)

CDBG for Public
Facilities Projects

CDBG requires that at least 51% of the persons benefited must be persons of low and moderate income as determined the U.S. Department Housing and Urban Development.
Municipalities and counties are awarded grants based on a competitive process. The Community Development Block Grant Program (Public Facilities) provides for a maximum state grant amount per project of $600,000 for cities and counties with a population greater than 3,500 people and $450,000 for cities and counties with a population under 3,500.
  • Drainage systems
  • Water and sewer systems
  • Roads and bridges
  • Buildings

Development Infrastructure Grant Program (DIP)

Municipalities and counties must apply on behalf of a new or expanded industry based on the public infrastructure needs of the project. The Development Infrastructure Grant Program provides for a maximum grant amount per project of $150,000.
  • Building (Purchase, construction, or rehabilitation)
  • Water Improvements
  • Sewer Improvements
  • Drainage Improvements
  • Transportation facilities directly affecting the site, including roads, bridges, rail lines or pipelines
  • Land Improvements
  • Marine Structures
  • Energy facilities (Power Generation and Distribution)

Economic Development Highway Grant
Program (EDH)

Job creation and private investment are the goals of the Economic Development Highway Grant Program. The typical private investment requirement is $70 million. Municipalities and counties must apply on behalf of a new or expanded industry based on the public infrastructure needs of the project.
  • State highways
  • City and county roads
  • Interchanges
  • Bridges

Job Protection
Grant Program

The existing industry cannot reduce employment by more than 20% if it receives a grant. The Job Protection Grant Program provides for a maximum grant amount per project of $200,000 provided that the existing industry matches the grant on a dollar for dollar basis.
Job Protection Grant funds are only available for fixed assets, and can’t be used for working capital or to provide facilities for utilization by a gaming enterprise or retail operations.
  • Buildings
  • Land Improvements

Mississippi Rail
Grant Program

The program provides grants to public and private railroads to finance railroad projects that promote economic growth and job creation in Mississippi. Eligible projects must identify specific repairs or improvements to a rail line that would make the line more competitive when providing services to industry in Mississippi.
  • Expanding and improving
    rail lines
  • Maintaining rail lines

Small Municipal and Limited Population Counties Grant Program

Small Municipalities and Counties – a municipality in the State of Mississippi with a population of ten thousand (10,000) or a county with a population of thirty thousand (30,000) or less according to the most recent federal decennial census at the time the application is submitted by the municipality. Funding from this program can be used by small municipalities and counties to assist with public facilities and infrastructure needs.

The Rural Impact
Grant Fund

A Rural Community is defined as a municipality with a population of 10,000 or less or a county with a population of 30,000 or less according to the most recent federal decennial census at the time the application is submitted. The Rural Impact Fund Grant Program provides for a maximum grant amount of $150,000 per project.
  • Building (Purchase, construction, or rehabilitation)
  • Water Improvements
  • Sewer Improvements
  • Drainage Improvements
  • Transportation facilities directly affecting the site, including roads, bridges, rail lines or pipelines
  • Land Improvements
  • Marine Structures
  • Energy facilities (Power Generation and Distribution)

Loan Programs

Loan Programs Program Facts Examples of Eligible Projects

Agribusiness Enterprise Loan Program (ABE)

The ABE Loan Program is designed to provide a percentage of low cost state financing that is combined with a private financial lending institution’s loan proceeds to encourage loans to the agribusiness industry in the state.
  • Buildings
  • Equipment

Airport Revitalization Revolving Loan Program

County and municipal airport authorities authorized to operate in Mississippi may apply for loans for the airport authority or on behalf of a new or expanded industry.
  • Equipment necessary for airport operation
  • Land improvements
  • Drainage systems
  • Sewer systems
  • Roads, bridges, rail spurs and runways
  • Buildings
  • Water supply systems (storage, treatment and distribution)

Capital Access Contract Loan Program

The purpose of the Capital Access Contract Loan Program is to increase the availability of financing for borrowers who might have difficulty in obtaining conventional loans. Loan proceeds may be used for costs associated with a public construction project or a public construction related project, with the public contract being used as collateral for each loan. This loan program assists socially and economically disadvantaged businesses as designated by the U. S. Small Business Act by providing loans to borrowers with contracts with public entities who, for various reasons, might have difficulty in obtaining conventional loans.

Capital Improvements Revolving Loan
Program (CAP)

County and municipal governmental authorities in Mississippi may apply for loans under this program.
  • Land improvements
  • Drainage systems
  • Improvements in fire protection
  • Sewer systems
  • Roads, bridges, rail spurs
  • Buildings
  • Water supply systems (storage, treatment, and distribution)
  • Remediation of brownfield agreement site

Energy Efficiency Revolving Loan Fund

Eligible entities for the Energy Efficiency Revolving Loan Fund are those that promote the development and demonstration of efficient, environmentally acceptable and commercially feasible technology and processes and that also utilize Mississippi’s existing energy resources, public utilities and/or developing resources that foster economic growth.
  • Lighting Retrofit
  • Heating and Cooling Systems

Energy Infrastructure Revolving Loan Program

The Energy Infrastructure Revolving Loan Program provides loans to local units of government to help finance energy infrastructure projects to promote economic growth in Mississippi.
  • To construct, repair or improve energy infrastructure
  • For site preparation for an economic development project

Existing Industry Productivity
Loan Program

Loan funds can be used to finance long-term fixed assets. This financing is for assets which, through new technology, will improve productivity and competitiveness of the company. The existing industry cannot reduce employment by more than 20% if it receives a loan.
  • Buildings
  • Land Improvements
  • Equipment

Freight Rail Service Revolving Loan Program

Increased rail usage and productivity is the goal of the Freight Rail Service Revolving Loan Program. County and municipal governmental authorities in Mississippi may apply for loans under this program.
  • Fixtures
  • Machinery
  • Equipment
  • Buildings

Minority Business Enterprise Loan
Program (MBE)

Job creation and the assistance to minority and women-owned businesses are the goals of the Minority Business Enterprise Loan Program.
  • Land and buildings
  • Working capital
  • Machinery
  • Equipment

Minority Business Micro Loan Program

Job creation and assistance to minority and women-owned businesses are the goals of the Minority Business Micro Loan Program.
  • Inventory purchase
  • Working capital
  • Machinery
  • Equipment

Minority Surety Bond Guaranty Program

In order to be considered for the Minority Surety Bond Guaranty Program, an eligible business and/or its bond producer must contact the Minority and Small Business Development Division to begin the process. The applicant may be a prime contractor or subcontractor as long as there is an executed contract for work to be performed. This program is available on construction projects requiring a performance and payment bond where the contracting agency is a federal, state or local unit of government (public projects). It is also available on certain private projects that have governmental funding.

Mississippi Alternative Fuel School Bus and Municipal Motor Vehicle Loan Program

The AFV Loan Program provides local units of government and public school districts loan funds to purchase new AFVs or the related AFV infrastructure needed to run these vehicles. The program also provides funding to convert existing conventional vehicles to use alternative fuels.
  • Purchase of new original equipment manufacturer (OEM)
  • Purchase of alternative fuel system equipment and facilities
  • Retrofit of existing fleet vehicles to use alternative fuels

Port Revitalization Revolving Loan Program

Job creation and the improvements of ports is the goal of the Port Revitalization Revolving Loan Program. State, county and municipal ports authorized to operate in Mississippi may apply for loans for the port or on behalf of a new or expanded industry.
  • Marine structures
  • Equipment necessary for port operation
  • Land improvements
  • Dock and channel sites to include dredging
  • Drainage systems
  • Sewer systems
  • Roads, bridges, and rail spurs
  • Buildings
  • Water supply systems (storage, treatment and distribution)

Small Business Loan Guaranty Loan Program

Created as part of the Small Business Jobs Act of 2010, the State Small Business Credit Initiative (SSBCI) was designed by the federal government to help increase credit availability for small businesses. As a result of the initiative, the U.S. Treasury made $1.5 billion of federal funds available to states, territories and eligible municipalities to help create and grow small businesses. Mississippi received $13,168,350 in SSBCI funds, and the program is administered in Mississippi by MDA through the Small Business Loan Guaranty Program. The SBLGP was created to enable lenders to make term loans or provide lines of credit to new or existing small business in a difficult credit environment to help with the development, expansion and retention of Mississippi’s small businesses.

Small Business and Existing Forestry Industry Loan Program

The Small Business and Existing Forestry Industry Loan Program encourages the extension of conventional financing, along with the issuance of letters of credit by private institutions, to qualified enterprises in the state of Mississippi. Through this program, MDA provides low-interest loans to qualified small businesses or existing companies in the forestry industry. Small Businesses – commercial enterprises with less than 100 full-time employees; $7 million in gross revenues; or $750,000 in profit after taxes.
Existing Forestry Industry Enterprises – principal places of business in Mississippi; operated in the state at least three consecutive years prior to applying.

Other Sources of Funding

Loan Programs Program Facts Examples of Eligible Projects

Appalachian Regional Commission (ARC)

MDA works collaboratively with local planning and development districts (PDDs), economic development organizations, local communities, and other state agencies in the development of eligible projects to address the needs in the 24 Mississippi ARC counties.
  • Increase private sector and high wage jobs across the MS Appalachian Region.
  • Develop sustainable communities with high quality of life throughout the Mississippi Appalachian Region.
  • Fund special regional initiatives in Asset Development.

Delta Regional
Authority (DRA)

MDA works collaboratively with local planning and development districts (PDDs), economic development organizations, local communities and other state agencies in the development of eligible projects to address the needs in the 45 Mississippi DRA counties.
  • Basic public infrastructure in distressed counties and isolated areas of distress
  • Transportation infrastructure to facilitate economic development
  • Business development, with an emphasis on entrepreneurship
  • Job training or employment related education, with an emphasis on the use of existing public educational institutions in the area.

Mississippi
Business Finance
Corporation (MBFC)

Local political entities have the authority to issue general obligation bonds for the purpose of acquiring publically owned land, buildings, and infrastructure.
  • Manufacturers
  • Warehouses and distribution centers
  • Research and development facilities
  • Telecommunications and data processing facilities
  • National or regional headquarters

Other Financial Assistance

Financial Assistance can also be obtained from the following sources.
  • Mississippi Association of Planning and Development Districts
  • USDA Rural Development
  • Small Business Administration
  • Mississippi Home Corporation
  • Mississippi Department of Archives and History

Tax Exemptions, Incentives, and Credits

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)

The Growth and Prosperity 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. View a detailed pdf.

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.