Tax Credits and Abatements
• No sales tax on purchases of raw materials, processing chemicals, or packaging materials.
• No sales tax on direct purchases of construction materials, machinery, and equipment for businesses that are financed through certain bonds for prospects located in less developed counties.
• Partial (50%) sales tax exemptions for purchases of construction materials, machinery and equipment in moderately developed and developed counties.
• A 1 1/2% sales tax on machinery and parts used directly in manufacturing and on industrial electricity, natural gas, and fuels.
• Favorable individual and corporate income tax rates.
• State income tax credits for five years up to $2,000 for each new job created by a new or expanding business.
• Five-year state income tax credits of $500 for each new R&D job created.
• For companies transferring regional or national headquarters to Mississippi, five-year state income tax credits of $500 for each new job created and full sales tax exemptions for direct purchases of construction materials, machinery, and equipment for the headquarters facility.
• State income tax credits equal to 50% of child care expenses.
• State income tax credits equal to 25% of basic skills training and job re-training expenses.
• State income tax credits for qualified industries in conjunction with certain bond financing through the Mississippi Business Finance Corporation.
• Exemptions from county property taxes, except school taxes.
• Exemptions of property taxes on finished goods through a Free Port Warehouse Law.
Incentives are a major factor in Mississippi’s reputation as one of the best business climates in the United States. Few other states can match the state’s incentives, which include the following important components. Mississippi continues to put programs in place that will help your business do good business. Just for starters, we have developed these advantages:
• Foreign trade zones, safe areas where your company’s goods can be landed, stored, processed, and transhipped–all without incurring custom duties (import tax). Foreign trade zones can provide customers with manufacturing, assembling, packaging, and display facilities, all free of duties.
• Customized training, developed specifically for your business’s needs. Through the State Department of Education and the Mississippi Development Authority, we can find you the right people and train them your way, on your company site, at mobile facilities, or at community colleges. It’s your choice.
• The right-to-work is assured by Mississippi’s Constitution, not just by statute as in most other right-to-work states. So your employees cannot be required to join a union as a condition of their employment.
• Favorable unemployment insurance rates and workers’ compensation rates make that bottom line healthier.
• State-sponsored financing programs for land, building, and new equipment.
• Utility companies offer discounts on telephone and electric rates to eligible companies.
• Mississippi’s environmental regulations are, in most cases, identical to federal regulations.
• Obtaining environmental permits in Mississippi is made easier by the fact that most permits are issued by the Mississippi Department of Environmental Quality (DEQ) and can be obtained from the office in Jackson. Although not actually defined as one-stop permitting, the process is not complicated. Senior agency management are accessible for thorough, open communication and decision making. The DEQ is the delegated authority to issue almost all federal environmental permits. The Permit Board meets bimonthly.
• Mississippi has exceptionally clean air and abundant water resources; these environmental conditions make almost every area of the state ideal for greenfield industrial sites. The state is one of the few states that meets all of the national ambient air quality standards for protection of public health and welfare. There are no nonattainment areas in the state.