Mississippi personal property tax #Tax #Incentives
Mississippi personal property tax
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Tax Incentives
Mississippi offers businesses locating or expanding in the state a number of tax incentives, including state income tax credits and sales, use and property tax exemptions.
Mississippi Tax Summary
To learn more about corporate taxes in Mississippi, download a PDF summarizing Mississippi’s tax structure here.
Income Tax Incentives
In Mississippi, corporate income is subject to a state income tax of 5 percent. The state offers a number of income tax incentives for companies creating jobs and making corporate investments.
Jobs Tax Credit
In Mississippi, companies receive a corporate income tax credit for creating jobs. These credits are equal to a percentage of payroll for each newly created job. Companies can either use the Jobs Tax Credit, which ranges from 2.5 percent to 10 percent of payroll for each newly created job, or they can opt to monetize that credit in the form of a Job Training Grant to directly reduce their workforce training costs.
Rural Economic Development Income Tax Credit
Rural Economic Development (RED) Income Tax Credits are credits that can be used to reduce Mississippi corporate income tax liability. These credits are available to companies using industrial revenue bonds issued by the Mississippi Business Finance Corporation (MBFC) and are based on the amount of bond-related debt service paid on MBFC-issued industrial revenue bonds.
Manufacturing Investment Tax Credit
Existing manufacturers that further invest in their Mississippi operations may be eligible for an investment tax credit that can be applied to their state income tax liability. To qualify, a manufacturer must have operated in the state for at least two years and must invest an additional $1,000,000 or more in buildings and/or equipment used in the manufacturing operation.
Income Tax Exemption for Businesses in Growth and Prosperity (GAP) Areas
The Growth and Prosperity (GAP) 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 Mississippi. The program is designed to encourage development in economically challenged areas of the state.
Income Tax Exemption for Aerospace Businesses
Aerospace businesses that locate or expand in Mississippi and create at least 100 full-time jobs and make an investment of at least $30 million in the state may receive an income tax exemption and other tax incentives through the Mississippi Aerospace Initiative Incentives Program.
Income Tax Exemption for Clean Energy Businesses
Mississippi’s Clean Energy Initiative Incentives Program provides an income tax exemption and other tax incentives to companies that manufacture systems or components used to generate clean, renewable, or alternative energy and create at least 250 full-time jobs and invest a minimum of $50 million in Mississippi.
National or Regional Headquarters Tax Credits
Mississippi awards income tax credits to companies locating or transferring their headquarters operations to the state and basing their executive officers and other high-level employees based in Mississippi. Credits include an income tax credit for each new full-time employee and an income tax credit equal to the actual relocations costs paid by the company.
View a full list of income tax incentives available to businesses in Mississippi here.
Sales & Use Tax Exemptions
All tangible personal property sold in Mississippi is considered taxable unless specifically specified by state law, and companies doing business in Mississippi that bring tangible personal property into the state are required to pay use tax on that property.
The regular retail sales and use tax rate on goods and services sold in Mississippi is 7 percent. Manufacturing machinery is taxed at 1.5 percent, and electricity and fuel used in the manufacturing process are exempt from sales tax. A contractor’s tax of 3.5 percent of a contractor’s gross receipts from construction is assessed on the construction of commercial real property in Mississippi. While contractor’s tax has no exemptions, the contractor is allowed to purchase all component building materials exempt from sales tax. The state offers a number of sales and use tax exemptions for businesses.
Sales and Use Tax Exemption for Construction or Expansion
Mississippi offers eligible businesses that construct a new facility or expand an existing facility in the state a sales and use tax exemption on component building materials, machinery and equipment. Eligible businesses include manufacturers and custom processors, along with data and information processing companies and technology-intensive facilities that are certified by the Mississippi Development Authority.
Sales and Use Tax Exemption for Bond Financing
Eligible businesses utilizing industrial revenue bonds issued by the Mississippi Business Finance Corporation (MBFC) may be eligible for a sales and use tax exemption on component building materials, machinery and equipment purchased using bond proceeds.
Sales and Use Tax Exemption for Businesses in Growth and Prosperity (GAP) Areas
The Growth and Prosperity (GAP) Program designates specific counties as GAP counties and provides sales and use, income, franchise and property tax incentives to companies that locate or expand in these areas of Mississippi. The program is designed to encourage development in economically challenged areas of the state.
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.
Sales and Use Tax Exemption for Aerospace Businesses
Aerospace businesses that locate or expand in Mississippi and create at least 100 full-time jobs and make an investment of at least $30 million in the state may receive a sales and use tax exemption and other tax incentives through the Mississippi Aerospace Initiative Incentives Program.
Sales and Use Tax Exemption for Clean Energy Businesses
Mississippi’s Clean Energy Initiative Incentives Program provides a sales and use tax exemption and other tax incentives to companies that manufacture systems or components used to generate clean, renewable or alternative energy and create at least 250 full-time jobs and invest a minimum of $50 million in Mississippi.
Sales and Use Tax Exemption for Data Center Enterprises
Mississippi provides data centers with a sales and use tax exemption for all new and replacement computing equipment and software. Data centers must invest at least $50 million and must create at least 50 new jobs paying 150 percent of the average state wage to qualify for this program.
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