09.24.15 |
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Mississippi Tax Credit Encourages Manufacturing Companies to Stay Local

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A big challenge in today’s economic environment is the need to retain homegrown businesses even as states compete with each other for jobs and talent. Tax incentives are one way states can encourage existing businesses to stay local.

Mississippi offers eligible local businesses that are either relocating to or expanding within the state a range of tax incentives, including state income tax credits, and sales, use and property tax exemptions. For manufacturers, the Manufacturing Investment Tax Credit provides eligible existing manufacturers that make additional investments in their operations within the state with an opportunity to obtain a credit against a portion of their state income tax liability.1

According to the Mississippi Development Authority (MDA), the Manufacturing Investment Tax Credit amount is “calculated as 5 percent of the eligible project investment and is allowed for the year that the investment occurs. The tax credit allowed on any project cannot exceed $1,000,000.”2 The credits can be used to offset up to 50 percent of the company’s income tax liability in the state, but only after all other available credits have been taken.3 However, any unused investment credits can be carried forward for up to five years.4

In order to be eligible for the tax credit, the MDA says manufacturers must invest $1 million or more in the buildings and/or equipment used in the manufacturing operation.5 Furthermore, manufacturers would need to have operated in the state for two or more years.6 Other eligibility guidelines include, without limitation:

  • Manufacturing enterprises involved in the transportation, handling, storage, processing or disposal of hazardous waste are not eligible for the credit.
  • The $1 million investment requirement is per project, but the money may be spent over multiple years.
  • Projects must have a definitive start and end date and may include the construction of a new manufacturing facility or upgrades to an existing facility.7

The Manufacturing Investment Tax Credit program is administered and awarded by the Mississippi Department of Revenue.

 

Learn More About ADP SmartCompliance® Tax Credits

 


 

1, 2, 3, 4Manufacturing Investment Tax Credit – http://www2.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/manufacturing-investment-tax-credit.html

5, 6, 7A. 13. Manufacturing Investment Tax Credit:  Mississippi Tax Incentives, Exemptions and Credits – https://www.dor.ms.gov/docs/2013IncentiveBook-pdffinal.pdf

 


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