State of Mississippi Incentives
The state of Mississippi through the Mississippi Development Authority offers incentive programs to businesses locating or expanding in the state. There are tax incentives, grants, and loans available.
Tax Exemptions & Incentives
The following is a sampling of available tax exemptions and incentives offered by the state of Mississippi. View the full list of available tax incentives and exemptions on the MDA website.
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.
Sales and Use Tax Exemption for Headquarters
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 for a business to qualify for this exemption.
On-the-Job Training (OJT) Reimbursement
OJT reimbursements can help offset training costs for new employees, depending on their wages and the length of training. The community college and/or WIN Job Center will work with the company to develop and negotiate a training and service plan and funding agreement.
Loans and Financing
The Mississippi Business Finance Corporation (MBFC), which is the financing arm of the Mississippi Department of Economic and Community Development, administers the following loan and financing programs. The following is a sampling of available financing.
100% Sales and Use Tax Exemption
A 100% sales and use tax exemption is available for eligible businesses that have qualified under the MBFC Incentive Program.
Mississippi Rural Economic Development Credits
An income tax credit is available to companies qualified under the MBFC Incentive Program. Credits are based on the amount of qualified annualized debt service. Credits can be used to offset up to 80% of a company’s state corporate income tax liability each year for the life of the qualified debt.
Tax-Exempt Interest Rate Access
Under the Internal Revenue Code, certain for-profit entities and Section 501(c)(3) organizations can finance their projects with tax-exempt bonds, but these entities cannot do so directly. They must borrow through a “conduit” issuer of bonds in order to receive the tax-exempt financing. Therefore, entities do not borrow from MBFC, but rather through MBFC, using MBFC as access to lower cost capital via tax-exempt rates.
Local Incentives
The TAP Alliance team works closely with leaders in state and local government to address needs for infrastructure improvements, utility connections, zoning adjustments, and workforce services.
General Obligation Bonds
Local political entities have the authority to issue G.O. bonds for the purpose of acquiring publicly owned land, buildings, and infrastructure for economic development projects. Requires legislative approval, must be an eligible business.
Ad Valorem Tax Exemption
Each County Board of Supervisors exempts real and personal property taxes for new and expanding industries on an individual basis as requested and upon need verification. Priority is given to businesses that are bringing new or expanded job opportunities to the county. Exemptions include but are not limited to buildings, land, equipment, fixtures, raw goods, goods in process, and finished goods. Exemptions are granted for a term of up to 10 years. These tax relief provisions exclude exemption from school taxes and road-and-bridge taxes.
Local Industrial Development Revenue Bonds
Local political entities in Mississippi, including counties, supervisors’ districts, incorporated cities and towns, have the authority to issue tax-exempt and taxable industrial development revenue bonds to finance new or expanding industrial enterprises.
Tennessee Valley Authority Programs
Businesses in the Tennessee Valley Authority’s region may be eligible for economic development programs provided by TVA. These include energy cost savings, loans, resources, and more. Learn about available TVA economic development incentive programs.
Workforce Training
Northeast Mississippi Community College
Northeast Mississippi Community College has two training facilities are located within the TAP region, one in Corinth and the other in Booneville. Mobile training facilities may be available upon request for onsite training throughout the TAP region.
East Mississippi Community College
The Mayhew campus of East Mississippi Community College is approximately 112 miles from the TAP Region.
University of Mississippi
The Center for Manufacturing Excellence provides manufacturing education through the mechanical engineering program, professional development courses, and is involved with industry-led research. 92 miles form the TAP region.
Mississippi State University
The Research and Curriculum Unit offers online courses and professional development training. Additional resources are available for loan. The Division of Academic Outreach and Continuing Education offers online professional development classes through Ed2Go.
Alcorn County Career and Technology Center
The Alcorn Career and Technology Center in Corinth, Mississippi, operated by the Alcorn School District, not only prepares high school students for the workforce but also offers night classes to help adults update and upgrade their skills.
Prentiss Career & Technical Center
High school students in Prentiss County can obtain vocational training at the Prentiss Creeer & Technical Center in Booneville, Mississippi. Courses include
- Business & Computer Technology
- Drafting
- Automotive Service Technology
- Manufacturing Fundamentals & Metal Fabrication
Tishomingo County Career and Technical Center
The Tishomingo Center in Tishomingo, Mississippi, helps prepare high school students for careers through vocational training. Courses include
- Industrial Maintenance
- Welding
- Automotive Repair
Tennessee College of Applied Technology at Memphis
Workforce training through traditional and distance learning systems is provided at the Tennessee Technology Center in Memphis, 110 miles from the TAP region. Courses include
- Machine tool technology
- Industrial maintenance repair
- Welding, brazing, and soldering