Mississippi Qualified Opportunity Zone Investment Incentive Program; establish.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Crosby

HOUSE BILL NO. 1996

AN ACT TO ESTABLISH THE MISSISSIPPI QUALIFIED OPPORTUNITY 1
ZONE INVESTMENT INCENTIVE PROGRAM; TO PROVIDE AD VALOREM TAX, 2
INCOME TAX AND SALES TAX INCENTIVES FOR QUALIFYING BUSINESSES 3
LOCATING OR EXPANDING OPERATIONS WITHIN FEDERALLY DESIGNATED 4
QUALIFIED OPPORTUNITY ZONES; TO PRESCRIBE ELIGIBILITY 5
REQUIREMENTS, BENEFITS, COMPLIANCE, AND TERMINATION PROVISIONS; TO 6
BRING FORWARD SECTION 27-7-21, MISSISSIPPI CODE OF 1972, WHICH IS 7
A SECTION OF THE STATE INCOME TAX LAW, FOR THE PURPOSES OF 8
POSSIBLE AMENDMENT; TO BRING FORWARD SECTION 27-65-101, 9
MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES CERTAIN INDUSTRIAL 10
SALES TAX EXEMPTIONS, FOR THE PURPOSES OF POSSIBLE AMENDMENT; AND 11
FOR RELATED PURPOSES. 12
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 13
SECTION 1. (1) The Legislature finds that qualified 14
opportunity zones represent areas of significant economic distress 15
and that targeted, performance-based incentives can encourage 16
private investment, job creation, and long-term economic 17
stability. The purpose of this section is to promote substantial 18
capital investment and employment opportunities within qualified 19
opportunity zones while ensuring accountability and measurable 20
public benefit. 21
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(2) As used in this section, the following words and phrases 22
shall have the meanings ascribed in this subsection unless the 23
context clearly requires otherwise: 24
(a) "MDA" means the Mississippi Development Authority. 25
(b) "Qualified opportunity zone" means and has the same 26
definition as such term has in 26 USC Section 1400Z-1. 27
(3) There is established the Mississippi Qualified 28
Opportunity Zone Investment Incentive Program, to be administered 29
by the MDA in coordination with the Mississippi Department of 30
Revenue and local governing authorities. 31
(4) To qualify for incentives under this section, a business 32
must: 33
(a) Locate or expand operations within a qualified 34
opportunity zone located in the State of Mississippi; 35
(b) Make a minimum capital investment of Three Million 36
Dollars ($3,000,000.00) in qualified property, facilities, or 37
equipment located within the qualified opportunity zone; 38
(c) Create not fewer than thirty (30) new full-time 39
jobs within the qualified opportunity zone; 40
(d) Ensure that at least sixty percent (60%) of new 41
full-time employees are residents of the municipality in which the 42
qualified opportunity zone is located; and 43
(e) Commit to maintaining operations within the 44
qualified opportunity zone for a minimum period of seven (7) years 45
from the date of certification. 46
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(5) Upon certification by the MDA and satisfaction of 47
eligibility requirements, an approved business may receive the 48
following incentives: 49
(a) Ad valorem tax exemption of up to one hundred 50
percent (100%) on eligible real and personal property, within a 51
qualified opportunity zone and which used in the business's 52
operations within the qualified opportunity zone, for a period not 53
to exceed ten (10) years, subject to approval by the applicable 54
local governing authorities; 55
(b) Income tax exemption of up to one hundred percent 56
(100%) of Mississippi income tax liability attributable to 57
operations within the qualified opportunity zone for a period not 58
to exceed ten (10) years; and 59
(c) Sales tax exemption on the purchase of capital 60
equipment, machinery, and related materials used directly in the 61
business's operations within the qualified opportunity zone. 62
(6) Ad valorem tax exemptions authorized under this section 63
require approval by the applicable municipality, county, or other 64
local governing authority in order to take effect. Nothing in 65
this section shall require a local governing authority to grant an 66
ad valorem tax exemption. 67
(7) Each business receiving incentives under this section 68
shall: 69
(a) Annually certify compliance with investment, 70
employment, and residency requirements; 71
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(b) Provide documentation as required by the MDA and 72
the Department of Revenue; and 73
(c) Submit to audit or review by the Office of the 74
State Auditor as necessary to ensure compliance. 75
(8) (a) Incentives granted under this section shall 76
terminate immediately if a business fails to: 77
(i) Maintain the required level of capital 78
investment; 79
(ii) Maintain the minimum number of full-time jobs; 80
or 81
(iii) Comply with residency or operational 82
requirements. 83
(b) The MDA, in coordination with the Department of 84
Revenue, may provide for recapture or repayment of incentives 85
received if noncompliance is determined, consistent with rules 86
adopted pursuant to this section. 87
(9) The MDA may promulgate rules, guidelines, and procedures 88
necessary to administer this program, including application 89
processes, certification standards, compliance monitoring, and 90
enforcement provisions. 91
(10) This section shall be construed to promote economic 92
development while safeguarding public funds through 93
performance-based incentives and accountability measures. 94
SECTION 2. Section 27-7-21, Mississippi Code of 1972, is 95
brought forward as follows: 96
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27-7-21. (a) Allowance of deductions. In the case of a 97
resident individual, the exemptions provided by this section, as 98
applicable to individuals, shall be allowed as deductions in 99
computing taxable income. 100
(b) Single individuals. In the case of a single individual, 101
a personal exemption of Five Thousand Two Hundred Fifty Dollars 102
($5,250.00) for the 1979 and 1980 calendar years and Six Thousand 103
Dollars ($6,000.00) for each calendar year thereafter. 104
(c) Married individuals. In the case of married individuals 105
living together, a joint personal exemption of Eight Thousand 106
Dollars ($8,000.00) for the 1979 and 1980 calendar years and Nine 107
Thousand Five Hundred Dollars ($9,500.00) for the 1981 through 108
1997 calendar years, Ten Thousand Dollars ($10,000.00) for the 109
calendar year 1998, Eleven Thousand Dollars ($11,000.00) for the 110
calendar year 1999, and Twelve Thousand Dollars ($12,000.00) for 111
each calendar year thereafter. A husband and wife living together 112
shall receive but one (1) personal exemption in the amounts 113
provided for in this subsection for each calendar year against 114
their aggregate income. 115
(d) Head of family individuals. In the case of a head of 116
family individual, a personal exemption of Eight Thousand Dollars 117
($8,000.00) for the 1979 and 1980 calendar years and Nine Thousand 118
Five Hundred Dollars ($9,500.00) for each calendar year 119
thereafter. The term "head of family" means an individual who is 120
single, or married but not living with his spouse for the entire 121
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taxable year, who maintains a household which constitutes the 122
principal place of abode of himself and one or more individuals 123
who are dependents under the provisions of Section 152(a) of the 124
Internal Revenue Code of 1954, as amended. The head of family 125
individual shall be entitled to the additional dependent exemption 126
as provided in subsection (e) of this section only to the extent 127
of dependents in excess of the one (1) dependent needed to qualify 128
as head of family. 129
(e) Additional exemption for dependents. In the case of any 130
individual having a dependent, other than husband or wife, an 131
additional personal exemption of One Thousand Five Hundred Dollars 132
($1,500.00) for each such dependent, except as otherwise provided 133
in subsection (d) of this section. The term "dependent" as used 134
in this subsection shall mean any person or individual who 135
qualifies as a dependent under the provisions of Section 152, 136
Internal Revenue Code of 1954, as amended. 137
(f) Additional exemption for taxpayer or spouse aged 138
sixty-five (65) or more. In the case of any taxpayer or the 139
spouse of the taxpayer who has attained the age of sixty-five (65) 140
before the close of his taxable year, an additional exemption of 141
One Thousand Five Hundred Dollars ($1,500.00). 142
(g) Additional exemption for blindness of taxpayer or 143
spouse. In the case of any taxpayer or the spouse of the taxpayer 144
who is blind at the close of the taxable year, an additional 145
exemption of One Thousand Five Hundred Dollars ($1,500.00). For 146
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the purpose of this subsection, an individual is blind only if his 147
central visual acuity does not exceed 20/200 in the better eye 148
with correcting lenses, or if his visual acuity is greater than 149
20/200 but is accompanied by a limitation in the fields of vision 150
such that the widest diameter of the visual field subtends an 151
angle no greater than twenty (20) degrees. 152
(h) Husband and wife--claiming exemptions. In the case of 153
husband and wife living together and filing combined returns, the 154
personal and additional exemptions authorized and allowed by this 155
section may be taken by either, or divided between them in any 156
manner they may choose. If the husband and wife fail to choose, 157
the commissioner shall divide the exemptions between husband and 158
wife in an equitable manner. In the case of a husband and wife 159
filing separate returns, the personal and additional exemptions 160
authorized and allowed by this section shall be divided equally 161
between the spouses. 162
(i) Nonresidents. A nonresident individual shall be allowed 163
the same personal and additional exemptions as are authorized for 164
resident individuals in subsection (a) of this section; however, 165
the nonresident individual is entitled only to that proportion of 166
the personal and additional exemptions as his net income from 167
sources within the State of Mississippi bears to his total or 168
entire net income from all sources. 169
A nonresident individual who is married and whose spouse has 170
income from independent sources must declare the joint income of 171
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himself and his spouse from sources within and without Mississippi 172
and claim as a personal exemption that proportion of the 173
authorized personal and additional exemptions which the total net 174
income from Mississippi sources bears to the total net income of 175
both spouses from all sources. If both spouses have income from 176
sources within Mississippi and wish to file separate returns, 177
their combined personal and additional exemptions shall be that 178
proration of the exemption which their combined net income from 179
Mississippi sources is of their total combined net income from all 180
sources. The amount of the personal and additional exemptions so 181
computed may be divided between them in any manner they choose. 182
In the case of married individuals where one (1) spouse is a 183
resident and the other is a nonresident, the personal exemption of 184
the resident individual shall be prorated on the same basis as if 185
both were nonresidents having net income from within and without 186
the State of Mississippi. 187
For the purpose of this subsection, the term "net income" 188
means gross income less business expenses incurred in the 189
taxpayer's regular trade or business and computed in accordance 190
with the provisions of the Mississippi Income Tax Law. 191
(j) Part-year residents. An individual who is a resident of 192
Mississippi for only a part of his taxable year by reason of 193
either moving into the state or moving from the state shall be 194
allowed the same personal and additional exemptions as authorized 195
for resident individuals in subsection (a) of this section; the 196
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part-year resident shall prorate his exemption on the same basis 197
as nonresidents having net income from within and without the 198
state. 199
(k) Estates. In the case of an estate, a specific exemption 200
of Six Hundred Dollars ($600.00). 201
(l) Trusts. In the case of a trust which, under its 202
governing instrument, is required to distribute all of its income 203
currently, a specific exemption of Three Hundred Dollars 204
($300.00). In the case of all other trusts, a specific exemption 205
of One Hundred Dollars ($100.00). 206
(m) Corporations, foundations, joint ventures, associations. 207
In the case of a corporation, foundation, joint venture or 208
association taxable herein, there shall be allowed no specific 209
exemption, except as provided under the Growth and Prosperity Act, 210
Sections 57-113-1 through 57-113-7, and Sections 57-113-21 through 211
57-113-27. 212
(n) Status. The status on the last day of the taxable year, 213
except in the case of the head of family as provided in subsection 214
(d) of this section, shall determine the right to the exemptions 215
provided in this section; provided, that a taxpayer shall be 216
entitled to such exemptions, otherwise allowable, if the husband 217
or wife or dependent has died during the taxable year. 218
(o) Fiscal-year taxpayers. Individual taxpayers reporting 219
on a fiscal year basis shall prorate their exemptions in a manner 220
established by regulations promulgated by the commissioner. 221
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SECTION 3. Section 27-65-101, Mississippi Code of 1972, is 222
brought forward as follows: 223
27-65-101. (1) The exemptions from the provisions of this 224
chapter which are of an industrial nature or which are more 225
properly classified as industrial exemptions than any other 226
exemption classification of this chapter shall be confined to 227
those persons or property exempted by this section or by the 228
provisions of the Constitution of the United States or the State 229
of Mississippi. No industrial exemption as now provided by any 230
other section except Section 57-3-33 shall be valid as against the 231
tax herein levied. Any subsequent industrial exemption from the 232
tax levied hereunder shall be provided by amendment to this 233
section. No exemption provided in this section shall apply to 234
taxes levied by Section 27-65-15 or 27-65-21. 235
The tax levied by this chapter shall not apply to the 236
following: 237
(a) Sales of boxes, crates, cartons, cans, bottles and 238
other packaging materials to manufacturers and wholesalers for use 239
as containers or shipping materials to accompany goods sold by 240
said manufacturers or wholesalers where possession thereof will 241
pass to the customer at the time of sale of the goods contained 242
therein and sales to anyone of containers or shipping materials 243
for use in ships engaged in international commerce. 244
(b) Sales of raw materials, catalysts, processing 245
chemicals, welding gases or other industrial processing gases 246
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(except natural gas) to a manufacturer for use directly in 247
manufacturing or processing a product for sale or rental or 248
repairing or reconditioning vessels or barges of fifty (50) tons 249
load displacement and over. For the purposes of this exemption, 250
electricity used directly in the electrolysis process in the 251
production of sodium chlorate shall be considered a raw material. 252
This exemption shall not apply to any property used as fuel except 253
to the extent that such fuel comprises by-products which have no 254
market value. 255
(c) The gross proceeds of sales of dry docks, offshore 256
drilling equipment for use in oil or natural gas exploration or 257
production, vessels or barges of fifty (50) tons load displacement 258
and over, when the vessels or barges are sold by the manufacturer 259
or builder thereof. In addition to other types of equipment, 260
offshore drilling equipment for use in oil or natural gas 261
exploration or production shall include aircraft used 262
predominately to transport passengers or property to or from 263
offshore oil or natural gas exploration or production platforms or 264
vessels, and engines, accessories and spare parts for such 265
aircraft. 266
(d) Sales to commercial fishermen of commercial fishing 267
boats of over five (5) tons load displacement and not more than 268
fifty (50) tons load displacement as registered with the United 269
States Coast Guard and licensed by the Mississippi Commission on 270
Marine Resources. 271
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(e) The gross income from repairs to vessels and barges 272
engaged in foreign trade or interstate transportation. 273
(f) Sales of petroleum products to vessels or barges 274
for consumption in marine international commerce or interstate 275
transportation businesses. 276
(g) Sales and rentals of rail rolling stock (and 277
component parts thereof) for ultimate use in interstate commerce 278
and gross income from services with respect to manufacturing, 279
repairing, cleaning, altering, reconditioning or improving such 280
rail rolling stock (and component parts thereof). 281
(h) Sales of raw materials, catalysts, processing 282
chemicals, welding gases or other industrial processing gases 283
(except natural gas) used or consumed directly in manufacturing, 284
repairing, cleaning, altering, reconditioning or improving such 285
rail rolling stock (and component parts thereof). This exemption 286
shall not apply to any property used as fuel. 287
(i) Sales of machinery or tools or repair parts 288
therefor or replacements thereof, fuel or supplies used directly 289
in manufacturing, converting or repairing ships, vessels or barges 290
of three thousand (3,000) tons load displacement and over, but not 291
to include office and plant supplies or other equipment not 292
directly used on the ship, vessel or barge being built, converted 293
or repaired. For purposes of this exemption, "ships, vessels or 294
barges" shall not include floating structures described in Section 295
27-65-18. 296
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(j) Sales of tangible personal property to persons 297
operating ships in international commerce for use or consumption 298
on board such ships. This exemption shall be limited to cases in 299
which procedures satisfactory to the commissioner, ensuring 300
against use in this state other than on such ships, are 301
established. 302
(k) Sales of materials used in the construction of a 303
building, or any addition or improvement thereon, and sales of any 304
machinery and equipment not later than three (3) months after the 305
completion of construction of the building, or any addition 306
thereon, to be used therein, to qualified businesses, as defined 307
in Section 57-51-5, which are located in a county or portion 308
thereof designated as an enterprise zone pursuant to Sections 309
57-51-1 through 57-51-15. 310
(l) Sales of materials used in the construction of a 311
building, or any addition or improvement thereon, and sales of any 312
machinery and equipment not later than three (3) months after the 313
completion of construction of the building, or any addition 314
thereon, to be used therein, to qualified businesses, as defined 315
in Section 57-54-5. 316
(m) Income from storage and handling of perishable 317
goods by a public storage warehouse. 318
(n) The value of natural gas lawfully injected into the 319
earth for cycling, repressuring or lifting of oil, or lawfully 320
vented or flared in connection with the production of oil; 321
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however, if any gas so injected into the earth is sold for such 322
purposes, then the gas so sold shall not be exempt. 323
(o) The gross collections from self-service commercial 324
laundering, drying, cleaning and pressing equipment. 325
(p) Sales of materials used in the construction of a 326
building, or any addition or improvement thereon, and sales of any 327
machinery and equipment not later than three (3) months after the 328
completion of construction of the building, or any addition 329
thereon, to be used therein, to qualified companies, certified as 330
such by the Mississippi Development Authority under Section 331
57-53-1. 332
(q) Sales of component materials used in the 333
construction of a building, or any addition or improvement 334
thereon, sales of machinery and equipment to be used therein, and 335
sales of manufacturing or processing machinery and equipment which 336
is permanently attached to the ground or to a permanent foundation 337
and which is not by its nature intended to be housed within a 338
building structure, not later than three (3) months after the 339
initial start-up date, to permanent business enterprises engaging 340
in manufacturing or processing in Tier Three areas (as such term 341
is defined in Section 57-73-21), which businesses are certified by 342
the Department of Revenue as being eligible for the exemption 343
granted in this paragraph (q). The exemption provided in this 344
paragraph (q) shall not apply to sales to any business enterprise 345
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that is a medical cannabis establishment as defined in the 346
Mississippi Medical Cannabis Act. 347
(r) (i) Sales of component materials used in the 348
construction of a building, or any addition or improvement 349
thereon, and sales of any machinery and equipment not later than 350
three (3) months after the completion of the building, addition or 351
improvement thereon, to be used therein, for any company 352
establishing or transferring its national or regional headquarters 353
from within or outside the State of Mississippi and creating a 354
minimum of twenty (20) jobs at the new headquarters in this state. 355
The exemption provided in this subparagraph (i) shall not apply to 356
sales for any company that is a medical cannabis establishment as 357
defined in the Mississippi Medical Cannabis Act. The Department 358
of Revenue shall establish criteria and prescribe procedures to 359
determine if a company qualifies as a national or regional 360
headquarters for the purpose of receiving the exemption provided 361
in this subparagraph (i). 362
(ii) Sales of component materials used in the 363
construction of a building, or any addition or improvement 364
thereon, and sales of any machinery and equipment not later than 365
three (3) months after the completion of the building, addition or 366
improvement thereon, to be used therein, for any company expanding 367
or making additions after January 1, 2013, to its national or 368
regional headquarters within the State of Mississippi and creating 369
a minimum of twenty (20) new jobs at the headquarters as a result 370
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of the expansion or additions. The exemption provided in this 371
subparagraph (ii) shall not apply to sales for any company that is 372
a medical cannabis establishment as defined in the Mississippi 373
Medical Cannabis Act. The Department of Revenue shall establish 374
criteria and prescribe procedures to determine if a company 375
qualifies as a national or regional headquarters for the purpose 376
of receiving the exemption provided in this subparagraph (ii). 377
(s) The gross proceeds from the sale of semitrailers, 378
trailers, boats, travel trailers, motorcycles, all-terrain cycles 379
and rotary-wing aircraft if exported from this state within 380
forty-eight (48) hours and registered and first used in another 381
state. 382
(t) Gross income from the storage and handling of 383
natural gas in underground salt domes and in other underground 384
reservoirs, caverns, structures and formations suitable for such 385
storage. 386
(u) Sales of machinery and equipment to nonprofit 387
organizations if the organization: 388
(i) Is tax exempt pursuant to Section 501(c)(4) of 389
the Internal Revenue Code of 1986, as amended; 390
(ii) Assists in the implementation of the 391
contingency plan or area contingency plan, and which is created in 392
response to the requirements of Title IV, Subtitle B of the Oil 393
Pollution Act of 1990, Public Law 101-380; and 394
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(iii) Engages primarily in programs to contain, 395
clean up and otherwise mitigate spills of oil or other substances 396
occurring in the United States coastal and tidal waters. 397
For purposes of this exemption, "machinery and equipment" 398
means any ocean-going vessels, barges, booms, skimmers and other 399
capital equipment used primarily in the operations of nonprofit 400
organizations referred to herein. 401
(v) Sales or leases of materials and equipment to 402
approved business enterprises as provided under the Growth and 403
Prosperity Act. 404
(w) From and after July 1, 2001, sales of pollution 405
control equipment to manufacturers or custom processors for 406
industrial use. For the purposes of this exemption, "pollution 407
control equipment" means equipment, devices, machinery or systems 408
used or acquired to prevent, control, monitor or reduce air, water 409
or groundwater pollution, or solid or hazardous waste as required 410
by federal or state law or regulation. 411
(x) Sales or leases to a manufacturer of motor vehicles 412
or powertrain components operating a project that has been 413
certified by the Mississippi Major Economic Impact Authority as a 414
project as defined in Section 57-75-5(f)(iv)1, Section 415
57-75-5(f)(xxi) or Section 57-75-5(f)(xxii) of machinery and 416
equipment; special tooling such as dies, molds, jigs and similar 417
items treated as special tooling for federal income tax purposes; 418
or repair parts therefor or replacements thereof; repair services 419
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thereon; fuel, supplies, electricity, coal and natural gas used 420
directly in the manufacture of motor vehicles or motor vehicle 421
parts or used to provide climate control for manufacturing areas. 422
(y) Sales or leases of component materials, machinery 423
and equipment used in the construction of a building, or any 424
addition or improvement thereon to an enterprise operating a 425
project that has been certified by the Mississippi Major Economic 426
Impact Authority as a project as defined in Section 427
57-75-5(f)(iv)1, Section 57-75-5(f)(xxi), Section 57-75-5(f)(xxii) 428
or Section 57-75-5(f)(xxviii) and any other sales or leases 429
required to establish or operate such project. 430
(z) Sales of component materials and equipment to a 431
business enterprise as provided under Section 57-64-33. 432
(aa) The gross income from the stripping and painting 433
of commercial aircraft engaged in foreign or interstate 434
transportation business. 435
(bb) [Repealed] 436
(cc) Sales or leases to an enterprise owning or 437
operating a project that has been designated by the Mississippi 438
Major Economic Impact Authority as a project as defined in Section 439
57-75-5(f)(xviii) of machinery and equipment; special tooling such 440
as dies, molds, jigs and similar items treated as special tooling 441
for federal income tax purposes; or repair parts therefor or 442
replacements thereof; repair services thereon; fuel, supplies, 443
electricity, coal and natural gas used directly in the 444
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manufacturing/production operations of the project or used to 445
provide climate control for manufacturing/production areas. 446
(dd) Sales or leases of component materials, machinery 447
and equipment used in the construction of a building, or any 448
addition or improvement thereon to an enterprise owning or 449
operating a project that has been designated by the Mississippi 450
Major Economic Impact Authority as a project as defined in Section 451
57-75-5(f)(xviii) and any other sales or leases required to 452
establish or operate such project. 453
(ee) Sales of parts used in the repair and servicing of 454
aircraft not registered in Mississippi engaged exclusively in the 455
business of foreign or interstate transportation to businesses 456
engaged in aircraft repair and maintenance. 457
(ff) Sales of component materials used in the 458
construction of a facility, or any addition or improvement 459
thereon, and sales or leases of machinery and equipment not later 460
than three (3) months after the completion of construction of the 461
facility, or any addition or improvement thereto, to be used in 462
the building or any addition or improvement thereto, to a 463
permanent business enterprise operating a data/information 464
enterprise in Tier Three areas (as such areas are designated in 465
accordance with Section 57-73-21), meeting minimum criteria 466
established by the Mississippi Development Authority. The 467
exemption provided in this paragraph (ff) shall not apply to sales 468
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to any business enterprise that is a medical cannabis 469
establishment as defined in the Mississippi Medical Cannabis Act. 470
(gg) Sales of component materials used in the 471
construction of a facility, or any addition or improvement 472
thereto, and sales of machinery and equipment not later than three 473
(3) months after the completion of construction of the facility, 474
or any addition or improvement thereto, to be used in the facility 475
or any addition or improvement thereto, to technology intensive 476
enterprises for industrial purposes in Tier Three areas (as such 477
areas are designated in accordance with Section 57-73-21), as 478
certified by the Department of Revenue. For purposes of this 479
paragraph, an enterprise must meet the criteria provided for in 480
Section 27-65-17(1)(f) in order to be considered a technology 481
intensive enterprise. 482
(hh) Sales of component materials used in the 483
replacement, reconstruction or repair of a building or facility 484
that has been destroyed or sustained extensive damage as a result 485
of a disaster declared by the Governor, sales of machinery and 486
equipment to be used therein to replace machinery or equipment 487
damaged or destroyed as a result of such disaster, including, but 488
not limited to, manufacturing or processing machinery and 489
equipment which is permanently attached to the ground or to a 490
permanent foundation and which is not by its nature intended to be 491
housed within a building structure, to enterprises or companies 492
that were eligible for the exemptions authorized in paragraph (q), 493
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(r), (ff) or (gg) of this subsection during initial construction 494
of the building that was destroyed or damaged, which enterprises 495
or companies are certified by the Department of Revenue as being 496
eligible for the exemption granted in this paragraph. 497
(ii) Sales of software or software services transmitted 498
by the Internet to a destination outside the State of Mississippi 499
where the first use of such software or software services by the 500
purchaser occurs outside the State of Mississippi. 501
(jj) Gross income of public storage warehouses derived 502
from the temporary storage of raw materials that are to be used in 503
an eligible facility as defined in Section 27-7-22.35. 504
(kk) Sales of component building materials and 505
equipment for initial construction of facilities or expansion of 506
facilities as authorized under Sections 57-113-1 through 57-113-7 507
and Sections 57-113-21 through 57-113-27. 508
(ll) Sales and leases of machinery and equipment 509
acquired in the initial construction to establish facilities as 510
authorized in Sections 57-113-1 through 57-113-7. 511
(mm) Sales and leases of replacement hardware, software 512
or other necessary technology to operate a data center as 513
authorized under Sections 57-113-21 through 57-113-27. 514
(nn) Sales of component materials used in the 515
construction of a building, or any addition or improvement 516
thereon, and sales or leases of machinery and equipment not later 517
than three (3) months after the completion of the construction of 518
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the facility, to be used in the facility, to permanent business 519
enterprises operating a facility producing renewable crude oil 520
from biomass harvested or produced, in whole or in part, in 521
Mississippi, which businesses meet minimum criteria established by 522
the Mississippi Development Authority. As used in this paragraph, 523
the term "biomass" shall have the meaning ascribed to such term in 524
Section 57-113-1. 525
(oo) Sales of supplies, equipment and other personal 526
property to an organization that is exempt from taxation under 527
Section 501(c)(3) of the Internal Revenue Code and is the host 528
organization coordinating a professional golf tournament played or 529
to be played in this state and the supplies, equipment or other 530
personal property will be used for purposes related to the golf 531
tournament and related activities. 532
(pp) Sales of materials used in the construction of a 533
health care industry facility, as defined in Section 57-117-3, or 534
any addition or improvement thereon, and sales of any machinery 535
and equipment not later than three (3) months after the completion 536
of construction of the facility, or any addition thereon, to be 537
used therein, to qualified businesses, as defined in Section 538
57-117-3. This paragraph shall be repealed from and after July 1, 539
2026. 540
(qq) Sales or leases to a manufacturer of automotive 541
parts operating a project that has been certified by the 542
Mississippi Major Economic Impact Authority as a project as 543
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defined in Section 57-75-5(f)(xxviii) of machinery and equipment; 544
or repair parts therefor or replacements thereof; repair services 545
thereon; fuel, supplies, electricity, coal, nitrogen and natural 546
gas used directly in the manufacture of automotive parts or used 547
to provide climate control for manufacturing areas. 548
(rr) Gross collections derived from guided tours on any 549
navigable waters of this state, which include providing 550
accommodations, guide services and/or related equipment operated 551
by or under the direction of the person providing the tour, for 552
the purposes of outdoor tourism. The exemption provided in this 553
paragraph (rr) does not apply to the sale of tangible personal 554
property by a person providing such tours. 555
(ss) Retail sales of truck-tractors and semitrailers 556
used in interstate commerce and registered under the International 557
Registration Plan (IRP) or any similar reciprocity agreement or 558
compact relating to the proportional registration of commercial 559
vehicles entered into as provided for in Section 27-19-143. 560
(tt) Sales exempt under the Facilitating Business Rapid 561
Response to State Declared Disasters Act of 2015 (Sections 562
27-113-1 through 27-113-9). 563
(uu) Sales or leases to an enterprise and its 564
affiliates operating a project that has been certified by the 565
Mississippi Major Economic Impact Authority as a project as 566
defined in Section 57-75-5(f)(xxix) of: 567
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(i) All personal property and fixtures, including 568
without limitation, sales or leases to the enterprise and its 569
affiliates of: 570
1. Manufacturing machinery and equipment; 571
2. Special tooling such as dies, molds, jigs 572
and similar items treated as special tooling for federal income 573
tax purposes; 574
3. Component building materials, machinery 575
and equipment used in the construction of buildings, and any other 576
additions or improvements to the project site for the project; 577
4. Nonmanufacturing furniture, fixtures and 578
equipment (inclusive of all communications, computer, server, 579
software and other hardware equipment); and 580
5. Fuel, supplies (other than 581
nonmanufacturing consumable supplies and water), electricity, 582
nitrogen gas and natural gas used directly in the 583
manufacturing/production operations of such project or used to 584
provide climate control for manufacturing/production areas of such 585
project; 586
(ii) All replacements of, repair parts for or 587
services to repair items described in subparagraph (i)1, 2 and 3 588
of this paragraph; and 589
(iii) All services taxable pursuant to Section 590
27-65-23 required to establish, support, operate, repair and/or 591
maintain such project. 592
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(vv) Sales or leases to an enterprise operating a 593
project that has been certified by the Mississippi Major Economic 594
Impact Authority as a project as defined in Section 595
57-75-5(f)(xxx) of: 596
(i) Purchases required to establish and operate 597
the project, including, but not limited to, sales of component 598
building materials, machinery and equipment required to establish 599
the project facility and any additions or improvements thereon; 600
and 601
(ii) Machinery, special tools (such as dies, 602
molds, and jigs) or repair parts thereof, or replacements and 603
lease thereof, repair services thereon, fuel, supplies and 604
electricity, coal and natural gas used in the manufacturing 605
process and purchased by the enterprise owning or operating the 606
project for the benefit of the project. 607
(ww) Sales of component materials used in the 608
construction of a building, or any expansion or improvement 609
thereon, sales of machinery and/or equipment to be used therein, 610
and sales of processing machinery and equipment which is 611
permanently attached to the ground or to a permanent foundation 612
which is not by its nature intended to be housed in a building 613
structure, no later than three (3) months after initial startup, 614
expansion or improvement of a permanent enterprise solely engaged 615
in the conversion of natural sand into proppants used in oil and 616
gas exploration and development with at least ninety-five percent 617
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(95%) of such proppants used in the production of oil and/or gas 618
from horizontally drilled wells and/or horizontally drilled 619
recompletion wells as defined in Sections 27-25-501 and 27-25-701. 620
(xx) (i) Sales or leases to an enterprise operating a 621
project that has been certified by the Mississippi Major Economic 622
Impact Authority as a project as defined in Section 623
57-75-5(f)(xxxi), for a period ending no later than one (1) year 624
following completion of the construction of the facility or 625
facilities comprising such project of all personal property and 626
fixtures, including without limitation, sales or leases to the 627
enterprise and its affiliates of: 628
1. Manufacturing machinery and equipment; 629
2. Special tooling such as dies, molds, jigs 630
and similar items treated as special tooling for federal income 631
tax purposes; 632
3. Component building materials, machinery 633
and equipment used in the construction of buildings, and any other 634
additions or improvements to the project site for the project; 635
4. Nonmanufacturing furniture, fixtures and 636
equipment (inclusive of all communications, computer, server, 637
software and other hardware equipment); 638
5. Replacements of, repair parts for or 639
services to repair items described in this subparagraph (i)1, 2 640
and 3; and 641
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6. All services taxable pursuant to Section 642
27-65-23 required to establish, support, operate, repair and/or 643
maintain such project; and 644
(ii) Sales or leases to an enterprise operating a 645
project that has been certified by the Mississippi Major Economic 646
Impact Authority as a project as defined in Section 647
57-75-5(f)(xxxi) of electricity, current, power, steam, coal, 648
natural gas, liquefied petroleum gas or other fuel, biomass, 649
nitrogen or other atmospheric or other industrial gases used 650
directly by the enterprise in the manufacturing/production 651
operations of its project or used to provide climate control for 652
manufacturing/production areas (which manufacturing/production 653
areas shall be apportioned based on square footage). As used in 654
this paragraph, the term "biomass" shall have the meaning ascribed 655
to such term in Section 57-113-1. 656
(yy) The gross proceeds from the sale of any item of 657
tangible personal property by the manufacturer or custom processor 658
thereof if such item is shipped, transported or exported from this 659
state and first used in another state, whether such shipment, 660
transportation or exportation is made by the seller, purchaser, or 661
any third party acting on behalf of such party. For the purposes 662
of this paragraph (yy), any instruction to, training of or 663
inspection by the purchaser with respect to the item prior to 664
shipment, transportation or exportation of the item shall not 665
constitute a first use of such item within this state. 666
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(zz) (i) Sales or leases to an enterprise operating a 667
project that has been certified by the Mississippi Major Economic 668
Impact Authority as a project as defined in Section 669
57-75-5(f)(xxxii), for a period ending no later than one (1) year 670
following completion of the construction of the facility or 671
facilities comprising such project of all personal property and 672
fixtures, including, without limitation, sales or leases to the 673
enterprise and its affiliates of: 674
1. Manufacturing machinery and equipment; 675
2. Special tooling such as dies, molds, jigs 676
and similar items treated as special tooling for federal income 677
tax purposes; 678
3. Component building materials, machinery 679
and equipment used in the construction of buildings, and any other 680
additions or improvements to the project site for the project; 681
4. Nonmanufacturing furniture, fixtures and 682
equipment (inclusive of all communications, computer, server, 683
software and other hardware equipment); 684
5. Replacements of, repair parts for or 685
services to repair items described in this subparagraph (i)1, 2 686
and 3; and 687
6. All services taxable pursuant to Section 688
27-65-23 required to establish, support, operate, repair and/or 689
maintain such project; and 690
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(ii) Sales or leases to an enterprise operating a 691
project that has been certified by the Mississippi Major Economic 692
Impact Authority as a project as defined in Section 693
57-75-5(f)(xxxii) of electricity, current, power, steam, coal, 694
natural gas, liquefied petroleum gas or other fuel, biomass, 695
nitrogen or other atmospheric or other industrial gases used 696
directly by the enterprise in the manufacturing/production 697
operations of its project or used to provide climate control for 698
manufacturing/production areas (which manufacturing/production 699
areas shall be apportioned based on square footage). As used in 700
this paragraph, the term "biomass" shall have the meaning ascribed 701
to such term in Section 57-113-1. 702
(aaa) Sales or leases to an enterprise and/or any 703
affiliates thereof operating a project that has been certified by 704
the Mississippi Major Economic Impact Authority as a project as 705
defined in Section 57-75-5(f)(xxxiii) of: 706
(i) Component building materials, fixtures, 707
machinery and equipment used in the construction of a data 708
processing facility or other buildings comprising all or part of a 709
project, for a period ending no later than one (1) year following 710
completion of the construction of the data processing facility or 711
such other building; and 712
(ii) All equipment and other personal property 713
needed to establish and operate the project and any expansions 714
thereof or additions thereto, including, but not limited to: 715
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1. Communications, computer, server, 716
software, connectivity materials and equipment, emergency power 717
generation equipment, other hardware equipment and any other 718
technology; 719
2. All replacements of, and repair parts for, 720
such equipment or other personal property; and 721
3. All services taxable pursuant to Section 722
27-65-23 required to install, support, operate, repair and/or 723
maintain the foregoing equipment and other personal property 724
described in this subparagraph (ii). 725
(bbb) Sales, leases or other retail transfers of 726
fixed-wing aircraft to, or to be used by, certified common 727
carriers in the transport of persons or property in interstate, 728
intrastate or foreign commerce, and engines, accessories and spare 729
parts for such fixed-wing aircraft. 730
(2) Sales of component materials used in the construction of 731
a building, or any addition or improvement thereon, sales of 732
machinery and equipment to be used therein, and sales of 733
manufacturing or processing machinery and equipment which is 734
permanently attached to the ground or to a permanent foundation 735
and which is not by its nature intended to be housed within a 736
building structure, not later than three (3) months after the 737
initial start-up date, to permanent business enterprises engaging 738
in manufacturing or processing in Tier Two areas and Tier One 739
areas (as such areas are designated in accordance with Section 740
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57-73-21), which businesses are certified by the Department of 741
Revenue as being eligible for the exemption granted in this 742
subsection, shall be exempt from one-half (1/2) of the taxes 743
imposed on such transactions under this chapter. The exemption 744
provided in this subsection (2) shall not apply to sales to any 745
business enterprise that is a medical cannabis establishment as 746
defined in the Mississippi Medical Cannabis Act. 747
(3) Sales of component materials used in the construction of 748
a facility, or any addition or improvement thereon, and sales or 749
leases of machinery and equipment not later than three (3) months 750
after the completion of construction of the facility, or any 751
addition or improvement thereto, to be used in the building or any 752
addition or improvement thereto, to a permanent business 753
enterprise operating a data/information enterprise in Tier Two 754
areas and Tier One areas (as such areas are designated in 755
accordance with Section 57-73-21), which businesses meet minimum 756
criteria established by the Mississippi Development Authority, 757
shall be exempt from one-half (1/2) of the taxes imposed on such 758
transactions under this chapter. The exemption provided in this 759
subsection (3) shall not apply to sales to any business enterprise 760
that is a medical cannabis establishment as defined in the 761
Mississippi Medical Cannabis Act. 762
(4) Sales of component materials used in the construction of 763
a facility, or any addition or improvement thereto, and sales of 764
machinery and equipment not later than three (3) months after the 765
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completion of construction of the facility, or any addition or 766
improvement thereto, to be used in the building or any addition or 767
improvement thereto, to technology intensive enterprises for 768
industrial purposes in Tier Two areas and Tier One areas (as such 769
areas are designated in accordance with Section 57-73-21), which 770
businesses are certified by the Department of Revenue as being 771
eligible for the exemption granted in this subsection, shall be 772
exempt from one-half (1/2) of the taxes imposed on such 773
transactions under this chapter. For purposes of this subsection, 774
an enterprise must meet the criteria provided for in Section 775
27-65-17(1)(f) in order to be considered a technology intensive 776
enterprise. 777
(5) (a) For purposes of this subsection: 778
(i) "Telecommunications enterprises" shall have 779
the meaning ascribed to such term in Section 57-73-21; 780
(ii) "Tier One areas" mean counties designated as 781
Tier One areas pursuant to Section 57-73-21; 782
(iii) "Tier Two areas" mean counties designated as 783
Tier Two areas pursuant to Section 57-73-21; 784
(iv) "Tier Three areas" mean counties designated 785
as Tier Three areas pursuant to Section 57-73-21; and 786
(v) "Equipment used in the deployment of broadband 787
technologies" means any equipment capable of being used for or in 788
connection with the transmission of information at a rate, prior 789
to taking into account the effects of any signal degradation, that 790
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is not less than thirty-five (35) megabits per second downlink and 791
three (3) megabits per second uplink for mobile broadband or that 792
is capable of providing fixed broadband service as defined by 793
Section 77-19-3. 794
(b) Sales of equipment to telecommunications 795
enterprises after June 30, 2003, and before July 1, 2030, that is 796
installed in Tier One areas and used in the deployment of 797
broadband technologies shall be exempt from one-half (1/2) of the 798
taxes imposed on such transactions under this chapter. 799
(c) Sales of equipment to telecommunications 800
enterprises after June 30, 2003, and before July 1, 2030, that is 801
installed in Tier Two and Tier Three areas and used in the 802
deployment of broadband technologies shall be exempt from the 803
taxes imposed on such transactions under this chapter. 804
(6) Sales of component materials used in the replacement, 805
reconstruction or repair of a building that has been destroyed or 806
sustained extensive damage as a result of a disaster declared by 807
the Governor, sales of machinery and equipment to be used therein 808
to replace machinery or equipment damaged or destroyed as a result 809
of such disaster, including, but not limited to, manufacturing or 810
processing machinery and equipment which is permanently attached 811
to the ground or to a permanent foundation and which is not by its 812
nature intended to be housed within a building structure, to 813
enterprises that were eligible for the partial exemptions provided 814
for in subsections (2), (3) and (4) of this section during initial 815
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ST: Mississippi Qualified Opportunity Zone
Investment Incentive Program; establish.
construction of the building that was destroyed or damaged, which 816
enterprises are certified by the Department of Revenue as being 817
eligible for the partial exemption granted in this subsection, 818
shall be exempt from one-half (1/2) of the taxes imposed on such 819
transactions under this chapter. 820
SECTION 4. This act shall take effect and be in force from 821
and after July 1, 2026. 822