Mississippi Code 1972 (2023) › Title 37 - EDUCATION (§§ 37-NEW-001 — 37-NEW01-004) › Chapter 148 - STRENGTHENING MISSISSIPPI ACADEMIC RESEARCH THROUGH BUSINESS ACT (§§ 37-148-1 — 37-148-11) › Section 37-148-5 - [Repealed effective 7/1/2026] SMART Business Rebate and SMART Business Accelerate Initiative; eligibility; limits; applications; processes for awards

(1)
The SMART Business Act shall include the SMART Business Rebate to promote research partnerships between colleges and investors and the SMART Business Accelerate Initiative to promote the development of state-owned intellectual property.
(2)
The SMART Business Rebate shall be implemented as follows:
(a)
Subject to the provisions of this chapter, an investor incurring qualified research costs subject to a research agreement is eligible for a rebate equal to twenty-five percent (25%) of the investor's qualified research costs.
(b)
An investor incurring research costs may not claim a rebate pursuant to this chapter greater than One Million Dollars ($1,000,000.00) in any fiscal year.
(c)
The total amount of rebates issued under the SMART Business Rebate by the state in any fiscal year may not exceed Three Million Five Hundred Thousand Dollars ($3,500,000.00).
(d)
Investors desiring to apply for the SMART Business rebate authorized by this chapter shall submit an application to IHL which must contain, at a minimum, the following:
(i)
A description of the qualified research to be conducted by the college or research corporation;
(ii)
A proposed budget;
(iii)
An estimated date for completion of the qualified research; and
(iv)
Such additional information as may be requested by IHL.
(e)
IHL shall review each application to determine if the investor has satisfied all of the requirements of this section.
(f)
Within sixty (60) days of receiving an application, IHL shall issue or refuse to issue a SMART Business Rebate certificate. The SMART Business Rebate certificate must include the amount of the rebate the investor is eligible to claim, subject to subsection (1) of this section. IHL must notify the Department of Revenue when a SMART Business Rebate certificate is issued.
(g)
To claim a rebate, the investor must submit a rebate allocation claim to the Department of Revenue. The rebate allocation claim must include, at a minimum, the SMART Business Rebate certificate issued by IHL and proof of payment to the college or research corporation for qualified research conducted according to the research agreement.
(h)
The Department of Revenue may request an audit from the investor submitting a rebate allocation claim, at the investor's expense, to verify the investor has satisfied the requirements of this chapter.
(i)
The Department of Revenue shall issue rebates available under this subsection from current income tax collections.
(j)
Rebates must be allocated to investors by the Department of Revenue in the order that SMART Business Rebate certificates are issued by IHL.
(3)
The SMART Business Accelerate Initiative shall be implemented as follows:
(a)
Subject to the provisions of this chapter, an applicant performing research validation pursuant to a research agreement is eligible for a disbursement of up to One Hundred Fifty Thousand Dollars ($150,000.00) for the applicant's qualified validation expenses.
(b)
The total amount of disbursements issued by the state under the SMART Business Accelerate Initiative in any fiscal year may not exceed One Million Five Hundred Thousand Dollars ($1,500,000.00).
(c)
Applicants desiring to apply for a SMART Business Accelerate Initiative disbursement authorized by this chapter shall submit an application to IHL which must contain, at a minimum, the following:
(i)
A description of the research validation to be conducted by the college or research corporation using funds from the disbursement;
(ii)
A proposed budget of qualified validation expenses;
(iii)
A certified determination from the applicant that the proposed research validation is necessary to develop state-owned intellectual property into products and services; and
(iv)
Such additional information as may be requested by IHL.
(d)
IHL shall review each application to determine if the applicant has satisfied all of the requirements of this section.
(e)
Within sixty (60) days of receiving an application, IHL shall issue or refuse to issue a SMART Business Accelerate Initiative disbursement certificate. The SMART Business Accelerate Initiative disbursement certificate must include the amount of the disbursement the applicant is eligible to receive, subject to paragraphs (a) and (b) of this subsection. IHL must notify the Department of Revenue when a SMART Business Accelerate Initiative disbursement certificate is issued.
(f)
IHL shall develop a process for accepting, reviewing and selecting proposals for SMART Business Accelerate Initiative disbursements and notifying the Department of Revenue when applicants have been selected to receive disbursements.
(g)
The Department of Revenue shall issue disbursements available under this subsection from current income tax collections.
Amended by Laws, 2021, ch. 465, SB 2839,§ 2, eff. 7/1/2021.
Added by Laws, 2013, ch. 540, HB 826, 3, eff. 7/1/2013.