Mississippi Code 1972 (2023) › Title 27 - TAXATION AND FINANCE (§§ 27-1-1 — 27-117-15) › Chapter 7 - INCOME TAX AND WITHHOLDING (§§ 27-7-1 — 27-7-NEW-002) › Article 1 - INCOME TAX (§§ 27-7-1 — 27-7-109) › Section 27-7-30 - Qualified business or industry exempt from taxation on income arising from certain projects developed under Mississippi Major Impact Act; requirements; reduction of amount of exemption

(1)
(a)
As used in this subsection, "qualified business or industry" means any company and its affiliates, that has been certified by the Major Economic Impact Authority as a project as defined in Section
57-75-5(f)(xxi)
.
(b)
A qualified business or industry shall be exempt from the tax imposed by this chapter on income arising from a project as defined in Section
57-75-5(f)(xxi)
only, and all other income shall be subject to the tax imposed by this chapter. The exemption does not apply to activities subject to Mississippi income tax prior to certification of the project.
(c)
The income tax exemption authorized by this subsection shall not exceed twenty (20) years. A qualified business or industry must create at least one thousand five hundred (1,500) jobs prior to receiving the exemption authorized by this subsection and may elect the date upon which the twenty-year period will begin; however, the date may not be later than sixty (60) months after the date the qualified business or industry begins commercial production.
(d)
In the event that the monthly average number of full-time jobs maintained by the qualified business or industry falls below one thousand five hundred (1,500) jobs, the tax exemption authorized by this subsection shall be reduced as follows:
(i)
If the monthly average number of full-time jobs for a taxable year is more than one thousand four hundred (1,400) but less than one thousand five hundred (1,500), the amount of the exemption shall be reduced by one percent (1%) for the taxable year.
(ii)
If the monthly average number of full-time jobs for a taxable year is more than one thousand one hundred (1,100) but less than one thousand four hundred one (1,401), then the amount of the exemption shall be reduced by twenty percent (20%) for the taxable year.
(iii)
If the monthly average number of full-time jobs for the taxable year is more than eight hundred (800) but less than one thousand one hundred one (1,101), then the amount of the exemption shall be reduced by forty percent (40%) for the taxable year.
(iv)
If the monthly average number of full-time jobs for the taxable year is more than five hundred (500) but less than eight hundred one (801), then the amount of the exemption shall be reduced by sixty percent (60%) for the taxable year.
(v)
If the monthly average number of full-time jobs for the taxable year is more than two hundred (200) but less than five hundred one (501), then the amount of the exemption shall be reduced by eighty percent (80%) for the taxable year.
(vi)
If the monthly average number of full-time jobs for the taxable year is two hundred (200) or less, the qualified business or industry shall not be eligible for the exemption for the taxable year.
(2)
(a)
As used in this subsection, "qualified business or industry" means any company and its affiliates that has been certified by the Major Economic Impact Authority as a project as defined in Section
57-75-5(f)(xxviii)
.
(b)
A qualified business or industry shall be exempt from the tax imposed by this chapter on income arising from a project as defined in Section
57-75-5(f)(xxviii)
only, and all other income shall be subject to the tax imposed by this chapter. The exemption does not apply to activities subject to Mississippi income tax prior to certification of the project.
(c)
The income tax exemption authorized by this subsection shall not exceed twenty (20) years unless the qualified business or industry creates and maintains for a period of three (3) years not less than one thousand (1,000) jobs, in which case the exemption period shall be extended by five (5) years.
(d)
In the event that the annual average number of full-time jobs maintained by the qualified business or industry falls below the qualified business or industry's job commitment for two (2) consecutive years, the tax exemption authorized by this subsection shall be suspended until the first tax year during which the annual average number of full-time jobs maintained by the qualified business or industry reaches the qualified business or industry's job commitment.
(3)
(a)
As used in this subsection, "qualified business or industry" means any company and its affiliates that has been certified by the Major Economic Impact Authority as a project as defined in Section
57-75-5(f)(xxix)
.
(b)
A qualified business or industry shall be exempt from the tax imposed by this chapter on income arising from a project as defined in Section
57-75-5(f)(xxix)
only, and all other income shall be subject to the tax imposed by this chapter. The exemption does not apply to activities subject to Mississippi income tax prior to certification of the project.
(c)
The income tax exemption authorized by this subsection shall not exceed twenty-five (25) years. A qualified business or industry must create the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and such qualified business or industry and may elect the date upon which the twenty-five-year period will begin; however, the date may not be later than sixty (60) months after the date the qualified business or industry begins commercial production.
(d)
In the event that the annual number of full-time jobs maintained by the qualified business or industry falls below the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and such qualified business or industry for two (2) consecutive years, the tax exemption authorized by this subsection shall be suspended until the first tax year during which the annual number of full-time jobs maintained by the qualified business or industry reaches the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and such qualified business or industry.
(e)
The qualified business or industry shall be entitled to utilize a single sales apportionment factor in the calculation of its liability for income tax imposed by this chapter for any year for which it files a Mississippi income tax return. The qualified business or industry shall be entitled to continue to utilize such single sales apportionment factor notwithstanding a suspension of the income tax exemption pursuant to paragraph (d) of this subsection.
(4)
(a)
As used in this subsection, "qualified business or industry" means any company and that has been certified by the Major Economic Impact Authority as a project as defined in Section
57-75-5(f)(xxx)
.
(b)
A qualified business or industry shall be exempt from the tax imposed by this chapter on income arising from a project as defined in Section
57-75-5(f)(xxx)
only, and all other income shall be subject to the tax imposed by this chapter. The exemption does not apply to activities subject to Mississippi income tax prior to certification of the project.
(c)
The income tax exemption authorized by this subsection shall not exceed twenty (20) years. A qualified business or industry must create at least one thousand (1,000) jobs prior to receiving the exemption authorized by this subsection and may elect the date upon which the twenty-year period will begin; however, the date may not be later than sixty (60) months after the date the qualified business or industry begins commercial production and in no event later than December 31, 2022.
(5)
(a)
As used in this subsection:
(i)
"Affiliate" shall have the meaning ascribed to such term in Section
57-75-5(k)(iii)
;
(ii)
"Qualified business or industry" means any company that has been certified by the Major Economic Impact Authority as a project as defined in Section
57-75-5(f)(xxxii)
, or any other company which becomes subject to the tax levied by this chapter because it is an affiliate, successor or assignee of the company that has been certified by the Major Economic Impact Authority as a project as defined in Section
57-75-5(f)(xxxii)
.
(b)
A qualified business or industry shall be exempt from the tax imposed by this chapter on income arising from a project as defined in Section
57-75-5(f)(xxxii)
only, and all other income shall be subject to the tax imposed by this chapter. The exemption does not apply to activities subject to Mississippi income tax prior to certification of the project.
(c)
The income tax exemption authorized by this subsection shall not exceed ten (10) years. A qualified business or industry must create the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and such qualified business or industry and may elect the date upon which the ten (10) year period will begin; however, the date may not be later than twenty-four (24) months after the date the qualified business or industry begins commercial production, as such date shall be determined in accordance with a written agreement between the authority and such qualified business or industry.
(d)
In the event that the annual number of full-time jobs maintained by the qualified business or industry falls below the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and such qualified business or industry, the tax exemption authorized by this subsection may be suspended by the authority pursuant to such written agreement until the number of full-time jobs maintained by the qualified business or industry reaches the minimum number of full-time jobs required by the authority pursuant to such written agreement.
(6)
(a)
As used in this subsection:
(i)
"Affiliate" shall have the meaning ascribed to such term in Section
57-75-5(k)(iv)
; and
(ii)
"Qualified business or industry" means any company and its affiliates operating a project that has been certified by the Major Economic Impact Authority as a project as defined in Section
57-75-5(f)(xxxiii)
.
(b)
A qualified business or industry shall be exempt from the tax imposed by this chapter on income arising from a project as defined in Section
57-75-5(f)(xxxiii)
only, and all other income of the qualified business or industry shall be subject to the tax imposed by this chapter unless another exemption applies to such income. The exemption does not apply to activities subject to Mississippi income tax prior to certification of the project.
(c)
The income tax exemption authorized by this subsection shall not exceed ten (10) years. A qualified business or industry must create the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and such qualified business or industry and may elect the date upon which the ten-year period will begin, provided that such election be made in accordance with a written agreement between the authority and such qualified business or industry.
(d)
In the event that the annual number of full-time jobs maintained by the qualified business or industry falls below the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and such qualified business or industry for two (2) consecutive years, the tax exemption authorized by this subsection shall be suspended until the first tax year during which the annual number of full-time jobs maintained by the qualified business or industry reaches the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and such qualified business or industry.
(7)
A qualified business or industry that utilizes the exemption authorized by this section shall not be eligible for the credits authorized in Sections
57-73-21
through
57-73-29
.
(8)
The Mississippi Development Authority may promulgate rules and regulations necessary to administer the provisions of this section.
Laws, 2007, ch. 303, § 13, eff. 3/2/2007.
Amended by Laws, 2024EX2, ch. (number not assigned at time of publication), SB 2001,§ 10, eff. 1/30/2024.
Amended by Laws, 2024EX1, ch. (number not assigned at time of publication), HB 1,§ 15, eff. 1/22/2024.
Amended by Laws, 2016EX1, ch. 1, HB 1,§ 11, eff. 2/8/2016.
Amended by Laws, 2013EX1, ch. 1, HB 1,§ 8, eff. 4/28/2013.