Tax Exemptions, Incentives and Credits

The following documents explain the various tax exemptions, incentives and credits which are available for industries and businesses operating in the state.

• Advantage Jobs Program
• Broadband Technology Tax Credits
• Free Port Warehouse Property Tax Exemption
• Growth and Prosperity Program
• Industrial Property Tax Exemption
• Jobs Tax Credits
• Manufacturing Investment Tax Credits
• Motion Picture Production Tax Incentive Program
• Mississippi Aerospace Initiative Incentives Program
• Mississippi Clean Energy Initiative Program
• Mississippi Data Center Incentives
• Mississippi Equity Investment Tax Credits
• National or Regional Headquarters Tax Credits
• Property Tax Exemption for Industrial Revenue Bond Financing
• Property Tax Exemption on In-State Inventory
• Property Tax Exemption for Broadband Technology
• Property Tax Fee in Lieu
• Research and Development Skills Tax Credits
• Rural Economic Development
• Sales and Use Tax Exemption for Bond Financing
• Sales and Use Tax Exemption for Construction or Expansion
• Sales Tax Exemption for Broadband Technology
• Sales Tax Exemption for Motion Picture Production
• Skills Training Income Tax Credits
• Tourism Rebate Program

Tax Incentives Available to Manufacturers in Mississippi

In order to attract and keep industry in Mississippi, the state offers a variety of incentives. This document explains the more commonly used tax incentives that are currently available to manufacturers in the state. Other incentives may be available to businesses that meet eligibility requirements.

INCOME TAX

In Mississippi, corporate income is taxed at 5%. Unless a company’s income is taxable in another state, this tax is based on the company’s net taxable income. For multi-state service providers, income is apportioned based on the formulas shown below. When calculating a wholesale manufacturing operation’s (an operation that sells to a company who purchases goods for resale) apportionment ratio, an average three factor formula is used, consisting of:

1. Ratio of property (book value) in Mississippi versus total property;
2. Ratio of payroll in Mississippi compared to total payroll;
3. Ratio of sales attributable to Mississippi compared to total sales.



Retail manufacturing operations (operations that sell directly to the end consumer) are subject to a weighted two-factor formula consisting of:

1. Ratio of property (book value) in Mississippi versus total property;
2. Ratio of payroll in Mississippi compared to total payroll.
    The result of the payroll and property ratio is then averaged with a sales factor to arrive at the double-weighted sales factor:
                 1. Ratio of property and payroll in Mississippi versus total property and payroll;
                 2. Ratio of sales in Mississippi versus total sales.

For both wholesale and retail manufacturers, after the apportionment ratio is determined, total corporate taxable income is multiplied by this ratio to arrive at apportioned net taxable income. Additional non-business income attributable to Mississippi is added to the calculated amount to arrive at the Mississippi net taxable income.