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H. B. No. 750 *HR31/R428* ~ OFFICIAL ~ G1/2
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To: Universities and
Colleges
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representatives Shanks, Foster
HOUSE BILL NO. 750
AN ACT TO REENACT SECTIONS 37-148-1 THROUGH 37-148-9, 1
MISSISSIPPI CODE OF 1972, WHICH ARE THE STRENGTHENING MISSISSIPPI 2
ACADEMIC RESEARCH THROUGH BUSINESS ACT; TO AMEND SECTION 3
37-148-11, MISSISSIPPI CODE OF 1972, TO EXTEND THE DATE OF THE 4
REPEALER ON THE STRENGTHENING MISSISSIPPI ACADEMIC RESEARCH 5
THROUGH BUSINESS ACT; AND FOR RELATED PURPOSES. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 7
SECTION 1. Section 37-148-1, Mississippi Code of 1972, is 8
reenacted as follows: 9
37-148-1. This chapter shall be known and may be cited as 10
the "Strengthening Mississippi Academic Research Through Business 11
Act." 12
SECTION 2. Section 37-148-3, Mississippi Code of 1972, is 13
reenacted as follows: 14
37-148-3. As used in this chapter, the following words and 15
phrases have the meanings ascribed in this section unless the 16
context clearly indicates otherwise: 17
(a) "College" means the state institutions of higher 18
learning in Mississippi which are accredited by the Southern 19
Association of Colleges and Schools. 20
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(b) "Investor" means a natural person, partnership, 21
limited liability company, association, corporation, business 22
trust or other business entity, not formed for the specific 23
purpose of acquiring the rebate offered, which is subject to 24
Mississippi income tax. The term "investor" does not include any 25
medical cannabis establishment as defined in the Mississippi 26
Medical Cannabis Act. 27
(c) "Qualified research" means the systematic 28
investigative process that is undertaken for the purpose of 29
discovering information. The term "qualified research" does not 30
include research conducted outside the State of Mississippi or 31
research expenses that are already being funded by any grant, 32
contract or otherwise by another person or governmental entity. 33
(d) "Research agreement" means a written contract, 34
grant or cooperative agreement entered into between a person and a 35
college or research corporation for the performance of qualified 36
research. All qualified research costs generating a SMART 37
Business Rebate must be spent by the college or research 38
corporation on qualified research undertaken according to a 39
research agreement. 40
(e) "Research corporation" means any research 41
corporation formed under Section 37-147-15 if the corporation is 42
wholly owned by or affiliated with a college and all income and 43
profits of the corporation inure to the benefit of the college. 44
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(f) "Qualified research costs" means costs paid or 45
incurred by an investor to a college or research corporation for 46
qualified research undertaken according to a research agreement. 47
(g) "State" means the State of Mississippi or a 48
governmental entity of the State of Mississippi. 49
(h) "IHL" means the Board of Trustees of State 50
Institutions of Higher Learning in Mississippi. 51
(i) "SMART Business" means Strengthening Mississippi 52
Academic Research Through Business. 53
(j) "Applicant" means a college or research corporation 54
applying for SMART Business Accelerate Initiative funds to develop 55
state-owned intellectual property into products and services. 56
(k) "Qualified validation expense" includes, but is not 57
limited to, services that accelerate the development of early 58
product concepts, conducting proof-of-concept studies, and 59
manufacturing prototypes to perform research validation. 60
Qualified validation expense does not include salaries or wages 61
associated with a licensee of state-owned intellectual property, 62
legal fees or any payment in conflict with state law. 63
(l) "Research validation" means research intended to 64
validate the commercial viability of state-owned intellectual 65
property. 66
(m) "Disbursement" means a grant of funds to support 67
research validation. 68
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SECTION 3. Section 37-148-5, Mississippi Code of 1972, is 69
reenacted as follows: 70
37-148-5. (1) The SMART Business Act shall include the 71
SMART Business Rebate to promote research partnerships between 72
colleges and investors and the SMART Business Accelerate 73
Initiative to promote the development of state-owned intellectual 74
property. 75
(2) The SMART Business Rebate shall be implemented as 76
follows: 77
(a) Subject to the provisions of this chapter, an 78
investor incurring qualified research costs subject to a research 79
agreement is eligible for a rebate equal to twenty-five percent 80
(25%) of the investor's qualified research costs. 81
(b) An investor incurring research costs may not claim 82
a rebate pursuant to this chapter greater than One Million Dollars 83
($1,000,000.00) in any fiscal year. 84
(c) The total amount of rebates issued under the SMART 85
Business Rebate by the state in any fiscal year may not exceed 86
Three Million Five Hundred Thousand Dollars ($3,500,000.00). 87
(d) Investors desiring to apply for the SMART Business 88
rebate authorized by this chapter shall submit an application to 89
IHL which must contain, at a minimum, the following: 90
(i) A description of the qualified research to be 91
conducted by the college or research corporation; 92
(ii) A proposed budget; 93
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(iii) An estimated date for completion of the 94
qualified research; and 95
(iv) Such additional information as may be 96
requested by IHL. 97
(e) IHL shall review each application to determine if 98
the investor has satisfied all of the requirements of this 99
section. 100
(f) Within sixty (60) days of receiving an application, 101
IHL shall issue or refuse to issue a SMART Business Rebate 102
certificate. The SMART Business Rebate certificate must include 103
the amount of the rebate the investor is eligible to claim, 104
subject to subsection (1) of this section. IHL must notify the 105
Department of Revenue when a SMART Business Rebate certificate is 106
issued. 107
(g) To claim a rebate, the investor must submit a 108
rebate allocation claim to the Department of Revenue. The rebate 109
allocation claim must include, at a minimum, the SMART Business 110
Rebate certificate issued by IHL and proof of payment to the 111
college or research corporation for qualified research conducted 112
according to the research agreement. 113
(h) The Department of Revenue may request an audit from 114
the investor submitting a rebate allocation claim, at the 115
investor's expense, to verify the investor has satisfied the 116
requirements of this chapter. 117
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(i) The Department of Revenue shall issue rebates 118
available under this subsection from current income tax 119
collections. 120
(j) Rebates must be allocated to investors by the 121
Department of Revenue in the order that SMART Business Rebate 122
certificates are issued by IHL. 123
(3) The SMART Business Accelerate Initiative shall be 124
implemented as follows: 125
(a) Subject to the provisions of this chapter, an 126
applicant performing research validation pursuant to a research 127
agreement is eligible for a disbursement of up to One Hundred 128
Fifty Thousand Dollars ($150,000.00) for the applicant's qualified 129
validation expenses. 130
(b) The total amount of disbursements issued by the 131
state under the SMART Business Accelerate Initiative in any fiscal 132
year may not exceed One Million Five Hundred Thousand Dollars 133
($1,500,000.00). 134
(c) Applicants desiring to apply for a SMART Business 135
Accelerate Initiative disbursement authorized by this chapter 136
shall submit an application to IHL which must contain, at a 137
minimum, the following: 138
(i) A description of the research validation to be 139
conducted by the college or research corporation using funds from 140
the disbursement; 141
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(ii) A proposed budget of qualified validation 142
expenses; 143
(iii) A certified determination from the applicant 144
that the proposed research validation is necessary to develop 145
state-owned intellectual property into products and services; and 146
(iv) Such additional information as may be 147
requested by IHL. 148
(d) IHL shall review each application to determine if 149
the applicant has satisfied all of the requirements of this 150
section. 151
(e) Within sixty (60) days of receiving an application, 152
IHL shall issue or refuse to issue a SMART Business Accelerate 153
Initiative disbursement certificate. The SMART Business 154
Accelerate Initiative disbursement certificate must include the 155
amount of the disbursement the applicant is eligible to receive, 156
subject to paragraphs (a) and (b) of this subsection. IHL must 157
notify the Department of Revenue when a SMART Business Accelerate 158
Initiative disbursement certificate is issued. 159
(f) IHL shall develop a process for accepting, 160
reviewing and selecting proposals for SMART Business Accelerate 161
Initiative disbursements and notifying the Department of Revenue 162
when applicants have been selected to receive disbursements. 163
(g) The Department of Revenue shall issue disbursements 164
available under this subsection from current income tax 165
collections. 166
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SECTION 4. Section 37-148-7, Mississippi Code of 1972, is 167
reenacted as follows: 168
37-148-7. IHL and the Department of Revenue each may 169
promulgate, in accordance with the Mississippi Administrative 170
Procedures Law, rules and regulations, application forms and any 171
other forms necessary for the implementation and administration of 172
this chapter. 173
SECTION 5. Section 37-148-9, Mississippi Code of 1972, is 174
reenacted as follows: 175
37-148-9. Before December 1 of each year, IHL shall file a 176
report with the Governor, Secretary of the Senate and Clerk of the 177
House of Representatives on the implementation of the 178
Strengthening Mississippi Academic Research Through Business Act. 179
For each research agreement where an investor was issued a SMART 180
Business certificate during that year, the report must include, 181
but not necessarily be limited to, the name of the investor and 182
the rebate amount the investor was eligible to claim. For each 183
SMART Business Accelerate Initiative disbursement certificate 184
issued during that year, the report must include, but not 185
necessarily be limited to, the name of the applicant, a 186
description of the research validation and the amount of the 187
disbursement. 188
SECTION 6. Section 37-148-11, Mississippi Code of 1972, is 189
amended as follows: 190
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ST: Strengthening MS Academic Research Through
Business Act; extend repealer on.
37-148-11. Sections 37-148-1, 37-148-3, 37-148-5, 37-148-7, 191
37-148-9 and 37-148-11, which constitute the Strengthening 192
Mississippi Academic Research Through Business Act, shall stand 193
repealed on July 1, * * * 2029. 194
SECTION 7. This act shall take effect and be in force from 195
and after July 1, 2026. 196