MS Health Care Industry Zone Act; extend repealer on act and related tax incentives.

H. B. No. 941 *HR43/R443* ~ OFFICIAL ~ G3/5
26/HR43/R443
PAGE 1 (RKM\KP)

To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representatives Shanks, Scott

HOUSE BILL NO. 941

AN ACT TO REENACT SECTIONS 57-117-1 THROUGH 57-117-9, 1
MISSISSIPPI CODE OF 1972, WHICH ARE THE MISSISSIPPI HEALTH CARE 2
INDUSTRY ZONE ACT; TO AMEND SECTION 57-117-11, MISSISSIPPI CODE OF 3
1972, TO EXTEND THE DATE OF THE REPEALER ON THE MISSISSIPPI HEALTH 4
CARE INDUSTRY ZONE ACT; TO AMEND SECTION 27-31-101, MISSISSIPPI 5
CODE OF 1972, TO EXTEND THE DATE OF THE REVERTER ON THE STATUTE 6
AUTHORIZING COUNTIES AND MUNICIPALITIES TO GRANT AN AD VALOREM TAX 7
EXEMPTION TO HEALTH CARE INDUSTRY FACILITIES; TO AMEND SECTION 8
27-31-104, MISSISSIPPI CODE OF 1972, TO EXTEND THE DATE OF THE 9
REVERTER ON THE STATUTE AUTHORIZING COUNTIES AND MUNICIPALITIES TO 10
GRANT A FEE-IN-LIEU OF AD VALOREM TAXES TO QUALIFIED BUSINESSES 11
UNDER THE MISSISSIPPI HEALTH CARE INDUSTRY ZONE ACT WHICH MEET 12
MINIMUM CRITERIA ESTABLISHED BY THE MISSISSIPPI DEVELOPMENT 13
AUTHORITY; TO AMEND SECTION 27-65-101, MISSISSIPPI CODE OF 1972, 14
TO EXTEND THE DATE OF THE REPEALER ON THE PROVISION OF LAW THAT 15
EXEMPTS FROM SALES TAXATION SALES OF MATERIALS USED IN THE 16
CONSTRUCTION OF, OR ADDITION OR IMPROVEMENTS TO, A HEALTH CARE 17
INDUSTRY FACILITY AND CERTAIN SALES OF MACHINERY AND EQUIPMENT TO 18
BE USED IN THE FACILITY; AND FOR RELATED PURPOSES. 19
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 20
SECTION 1. Section 57-117-1, Mississippi Code of 1972, is 21
reenacted as follows: 22
57-117-1. This chapter shall be known and may be cited as 23
the "Mississippi Health Care Industry Zone Act." 24
SECTION 2. Section 57-117-3, Mississippi Code of 1972, is 25
reenacted as follows: 26
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 2 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
57-117-3. In this chapter: 27
(a) "Health care industry facility" means: 28
(i) A business engaged in the research and 29
development of pharmaceuticals, biologics, biotechnology, 30
diagnostic imaging, medical supplies, medical equipment or 31
medicine and related manufacturing or processing, medical service 32
providers, medical product distribution, or laboratory testing 33
that creates a minimum of twenty-five (25) new full-time jobs 34
and/or Ten Million Dollars ($10,000,000.00) of capital investment 35
after July 1, 2012; or 36
(ii) A business that 1. is located on land owned 37
by or leased from an academic health science center with a medical 38
school accredited by the Liaison Committee on Medical Education 39
and a hospital accredited by the Joint Committee on Accreditation 40
of Healthcare Organizations and 2. creates a minimum of 41
twenty-five (25) new jobs and/or Twenty Million Dollars 42
($20,000,000.00) of capital investment after July 1, 2012. 43
The term "health care industry facility" does not include any 44
medical cannabis establishment as defined in the Mississippi 45
Medical Cannabis Act. 46
(b) "MDA" means the Mississippi Development Authority. 47
(c) "Health care industry zone" means a geographical 48
area certified by the MDA as provided for in Section 57-117-5. 49
(d) "Local government unit" means any county or 50
incorporated city, town or village in the State of Mississippi. 51
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 3 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
(e) "Person" means a natural person, partnership, 52
limited liability company, association, corporation, business 53
trust or other business entity. 54
(f) "Qualified business" means a business or health 55
care industry facility that meets the requirements of Section 56
57-117-7 and any other requirements of this chapter. The term 57
"qualified business" does not include any medical cannabis 58
establishment as defined in the Mississippi Medical Cannabis Act. 59
SECTION 3. Section 57-117-5, Mississippi Code of 1972, is 60
reenacted as follows: 61
57-117-5. (1) The MDA may certify an area as a health care 62
industry zone if the following requirements are met: 63
(a) The area is located within: 64
(i) Three (3) contiguous counties which have 65
certificates of need of more than three hundred seventy-five (375) 66
acute care hospital beds; and/or 67
(ii) A county which has a hospital with a minimum 68
capital investment of Two Hundred Fifty Million Dollars 69
($250,000,000.00) and for which construction is completed before 70
July 1, 2017; 71
(b) The health care industry facility is located within 72
an eight-mile radius of: 73
(i) A facility with a certificate of need for 74
hospital beds; and/or 75
(ii) A university or college that is: 76
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 4 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
1. Accredited by the Southern Association of 77
Colleges and Schools and awards degrees and/or trains workers for 78
jobs in health care or pharmaceutical fields of study and/or work, 79
and 80
2. Located along or near Mississippi Highway 81
67 within a master planned community as defined in Section 82
19-5-10; and 83
(c) The zoning of the local government unit, if 84
applicable, allows the construction or operation in the proposed 85
health care industry zone of the health care industry facility. 86
(2) A health care industry facility that engages in an 87
activity for which a certificate of need is required must comply 88
with the provisions of Section 41-7-191 in order to be certified 89
as a qualified business. 90
(3) The MDA may adopt and promulgate such rules and 91
regulations, in compliance with the Mississippi Administrative 92
Procedures Law, as are necessary for the efficient and effective 93
administration of this section in keeping with the purposes for 94
which it is enacted. 95
SECTION 4. Section 57-117-7, Mississippi Code of 1972, is 96
reenacted as follows: 97
57-117-7. (1) Businesses and health care industry 98
facilities shall apply to the MDA for certification as a qualified 99
business. If the health care industry facility or business is 100
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 5 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
located in a health care industry zone and meets the requirements 101
of this chapter, the MDA shall certify it as a qualified business. 102
(2) A health care industry facility or business certified by 103
the MDA as a qualified business within a health care industry zone 104
that constructs or renovates a health care industry facility 105
within a health care industry zone shall qualify for the 106
following: 107
(a) An accelerated state income tax depreciation 108
deduction. The accelerated depreciation deduction shall be 109
computed by accelerating depreciation period required by 110
Mississippi Administrative Code, to a ten-year depreciation 111
period. 112
(b) A sales tax exemption as authorized in Section 113
27-65-101(1)(pp). 114
(c) A fee-in-lieu of taxes as authorized in Section 115
27-31-104. 116
(d) An ad valorem tax exemption as authorized in 117
Section 27-31-101. 118
SECTION 5. Section 57-117-9, Mississippi Code of 1972, is 119
reenacted as follows: 120
57-117-9. If the qualified business has not created the 121
requisite number of jobs required by this chapter, the health care 122
industry zone certification may be revoked by MDA after five (5) 123
years have elapsed from the effective date of certification. A 124
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 6 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
revocation under this section shall not act retroactively to 125
remove any incentives granted by this chapter. 126
SECTION 6. Section 57-117-11, Mississippi Code of 1972, is 127
amended as follows: 128
57-117-11. Sections 57-117-1 through 57-117-11 shall be 129
repealed from and after July 1, * * * 2029. 130
SECTION 7. Section 27-31-101, Mississippi Code of 1972, is 131
amended as follows: 132
[Through June 30, * * * 2029, this section shall read as 133
follows:] 134
27-31-101. (1) County boards of supervisors and municipal 135
authorities are hereby authorized and empowered, in their 136
discretion, to grant exemptions from ad valorem taxation, except 137
state ad valorem taxation; however, such governing authorities 138
shall not exempt ad valorem taxes for school district purposes on 139
tangible property used in, or necessary to, the operation of the 140
manufacturers and other new enterprises enumerated by classes in 141
this section, except to the extent authorized in Sections 142
27-31-104 and 27-31-105(2), nor shall they exempt from ad valorem 143
taxes the products of the manufacturers or other new enterprises 144
or automobiles and trucks belonging to the manufacturers or other 145
new enterprises operating on and over the highways of the State of 146
Mississippi. The time of such exemption shall be for a period not 147
to exceed a total of ten (10) years, which shall begin on the date 148
of completion of the new enterprise for which the exemption is 149
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 7 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
granted; however, boards of supervisors and municipal authorities, 150
in lieu of granting the exemption for one (1) period of ten (10) 151
years, may grant the exemption in a period of less than ten (10) 152
years. When the initial exemption period granted is less than ten 153
(10) years, the boards of supervisors and municipal authorities 154
may grant a subsequent consecutive period or periods to follow the 155
initial period of exemption, provided that the total of all 156
periods of exemption shall not exceed ten (10) years. The date of 157
completion of the new enterprise, from which the initial period of 158
exemption shall begin, shall be the date on which operations of 159
the new enterprise begin. The initial request for an exemption 160
must be made in writing by June 1 of the year immediately 161
following the year in which the date of completion of a new 162
enterprise occurs. If the initial request for the exemption is 163
not timely made, the board of supervisors or municipal authorities 164
may grant a subsequent request for the exemption and, in such 165
case, the exemption shall begin on the anniversary date of 166
completion of the enterprise in the year in which the request is 167
made and may be for a period of time extending not more than ten 168
(10) years from the date of completion of the new enterprise. Any 169
subsequent request for the exemption must be made in writing by 170
June 1 of the year in which it is granted. 171
(2) Any board of supervisors or municipal authority which 172
has granted an exemption for a period of less than ten (10) years 173
may grant subsequent periods of exemption to run consecutively 174
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 8 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
with the initial exemption period, or a subsequently granted 175
exemption period, but in no case shall the total of the exemption 176
periods granted for a new enterprise exceed ten (10) years. Any 177
consecutive period of exemption shall be granted by entry of an 178
order by the board or the authority granting the consecutive 179
exemption on its minutes, reflecting the granting of the 180
consecutive exemption period and the dates upon which such 181
consecutive exemption period begins and expires. The entry of 182
this order granting the consecutive period of exemption shall be 183
made before the expiration of the exemption period immediately 184
preceding the consecutive exemption period being granted. 185
(3) (a) The new enterprises for which any or all of the 186
tangible property described in paragraph (b) of this subsection 187
(3) may be exempt from ad valorem taxation, except state ad 188
valorem taxation, ad valorem taxes for school district purposes, 189
and ad valorem taxes on the products thereof or on automobiles and 190
trucks belonging thereto and operating on and over the highways of 191
the State of Mississippi, are enumerated as and limited to the 192
following, as determined by the Department of Revenue: 193
(i) Warehouse and/or distribution centers; 194
(ii) Manufacturing, processors and refineries; 195
(iii) Research facilities; 196
(iv) Corporate regional and national headquarters 197
meeting minimum criteria established by the Mississippi 198
Development Authority; 199
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 9 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
(v) Movie industry studios meeting minimum 200
criteria established by the Mississippi Development Authority; 201
(vi) Air transportation and maintenance facilities 202
meeting minimum criteria established by the Mississippi 203
Development Authority; 204
(vii) Recreational facilities that impact tourism 205
meeting minimum criteria established by the Mississippi 206
Development Authority; 207
(viii) Data/information processing enterprises 208
meeting minimum criteria established by the Mississippi 209
Development Authority; 210
(ix) Technology intensive enterprises or 211
facilities meeting criteria established by the Mississippi 212
Development Authority; 213
(x) Health care industry facilities as defined in 214
Section 57-117-3; 215
(xi) Data centers as defined in Section 57-113-21; 216
(xii) Telecommunications enterprises meeting 217
minimum criteria established by the Mississippi Development 218
Authority. The term "telecommunications enterprises" means 219
entities engaged in the creation, display, management, storage, 220
processing, transmission or distribution for compensation of 221
images, text, voice, video or data by wire or by wireless means, 222
or entities engaged in the construction, design, development, 223
manufacture, maintenance or distribution for compensation of 224
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 10 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
devices, products, software or structures used in the above 225
activities. Companies organized to do business as commercial 226
broadcast radio stations, television stations or news 227
organizations primarily serving in-state markets shall not be 228
included within the definition of the term "telecommunications 229
enterprises"; and 230
(xiii) Controlled environment agriculture 231
enterprises meeting minimum criteria established by the 232
Mississippi Development Authority. 233
The new enterprises enumerated in this paragraph (a) do not 234
include medical cannabis establishments as defined in Section 235
41-137-3 of the Mississippi Medical Cannabis Act. 236
(b) An exemption from ad valorem taxes granted under 237
this section may include any or all tangible property, real or 238
personal, including any leasehold interests therein but excluding 239
automobiles and trucks operating on and over the highways of the 240
State of Mississippi, used in connection with, or necessary to, 241
the operation of an enterprise enumerated in paragraph (a) of this 242
subsection (3), whether or not such property is owned, leased, 243
subleased, licensed or otherwise obtained by such enterprise, 244
irrespective of the taxpayer to which any such leased property is 245
assessed for ad valorem tax purposes. If an exemption is granted 246
pursuant to this section with respect to any leasehold interest 247
under a lease, sublease or license of tangible property used in 248
connection with, or necessary to, the operation of an enterprise 249
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 11 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
enumerated in paragraph (a) of this subsection (3), the 250
corresponding ownership interest of the owner, lessor and 251
sublessor of such tangible property shall similarly and 252
automatically be exempt without any action being required to be 253
taken by such owner, lessor or sublessor. 254
(4) Any exemption from ad valorem taxes granted under this 255
section before March 28, 2019, and consistent herewith, is hereby 256
ratified, approved and confirmed. 257
[From and after July 1, * * * 2029, this section shall read 258
as follows:] 259
27-31-101. (1) County boards of supervisors and municipal 260
authorities are hereby authorized and empowered, in their 261
discretion, to grant exemptions from ad valorem taxation, except 262
state ad valorem taxation; however, such governing authorities 263
shall not exempt ad valorem taxes for school district purposes on 264
tangible property used in, or necessary to, the operation of the 265
manufacturers and other new enterprises enumerated by classes in 266
this section, except to the extent authorized in Sections 267
27-31-104 and 27-31-105(2), nor shall they exempt from ad valorem 268
taxes the products of the manufacturers or other new enterprises 269
or automobiles and trucks belonging to the manufacturers or other 270
new enterprises operating on and over the highways of the State of 271
Mississippi. The time of such exemption shall be for a period not 272
to exceed a total of ten (10) years, which shall begin on the date 273
of completion of the new enterprise for which the exemption is 274
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 12 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
granted; however, boards of supervisors and municipal authorities, 275
in lieu of granting the exemption for one (1) period of ten (10) 276
years, may grant the exemption in a period of less than ten (10) 277
years. When the initial exemption period granted is less than ten 278
(10) years, the boards of supervisors and municipal authorities 279
may grant a subsequent consecutive period or periods to follow the 280
initial period of exemption, provided that the total of all 281
periods of exemption shall not exceed ten (10) years. The date of 282
completion of the new enterprise, from which the initial period of 283
exemption shall begin, shall be the date on which operations of 284
the new enterprise begin. The initial request for an exemption 285
must be made in writing by June 1 of the year immediately 286
following the year in which the date of completion of a new 287
enterprise occurs. If the initial request for the exemption is 288
not timely made, the board of supervisors or municipal authorities 289
may grant a subsequent request for the exemption and, in such 290
case, the exemption shall begin on the anniversary date of 291
completion of the enterprise in the year in which the request is 292
made and may be for a period of time extending not more than ten 293
(10) years from the date of completion of the new enterprise. Any 294
subsequent request for the exemption must be made in writing by 295
June 1 of the year in which it is granted. 296
(2) Any board of supervisors or municipal authority which 297
has granted an exemption for a period of less than ten (10) years 298
may grant subsequent periods of exemption to run consecutively 299
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 13 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
with the initial exemption period, or a subsequently granted 300
exemption period, but in no case shall the total of the exemption 301
periods granted for a new enterprise exceed ten (10) years. Any 302
consecutive period of exemption shall be granted by entry of an 303
order by the board or the authority granting the consecutive 304
exemption on its minutes, reflecting the granting of the 305
consecutive exemption period and the dates upon which such 306
consecutive exemption period begins and expires. The entry of 307
this order granting the consecutive period of exemption shall be 308
made before the expiration of the exemption period immediately 309
preceding the consecutive exemption period being granted. 310
(3) (a) The new enterprises for which any or all of the 311
tangible property described in paragraph (b) of this subsection 312
(3) may be exempt from ad valorem taxation, except state ad 313
valorem taxation, ad valorem taxes for school district purposes, 314
and ad valorem taxes on the products thereof or on automobiles and 315
trucks belonging thereto and operating on and over the highways of 316
the State of Mississippi, are enumerated as and limited to the 317
following, as determined by the Department of Revenue: 318
(i) Warehouse and/or distribution centers; 319
(ii) Manufacturing, processors and refineries; 320
(iii) Research facilities; 321
(iv) Corporate regional and national headquarters 322
meeting minimum criteria established by the Mississippi 323
Development Authority; 324
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 14 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
(v) Movie industry studios meeting minimum 325
criteria established by the Mississippi Development Authority; 326
(vi) Air transportation and maintenance facilities 327
meeting minimum criteria established by the Mississippi 328
Development Authority; 329
(vii) Recreational facilities that impact tourism 330
meeting minimum criteria established by the Mississippi 331
Development Authority; 332
(viii) Data/information processing enterprises 333
meeting minimum criteria established by the Mississippi 334
Development Authority; 335
(ix) Technology intensive enterprises or 336
facilities meeting criteria established by the Mississippi 337
Development Authority; 338
(x) Data centers as defined in Section 57-113-21; 339
(xi) Telecommunications enterprises meeting 340
minimum criteria established by the Mississippi Development 341
Authority. The term "telecommunications enterprises" means 342
entities engaged in the creation, display, management, storage, 343
processing, transmission or distribution for compensation of 344
images, text, voice, video or data by wire or by wireless means, 345
or entities engaged in the construction, design, development, 346
manufacture, maintenance or distribution for compensation of 347
devices, products, software or structures used in the above 348
activities. Companies organized to do business as commercial 349
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 15 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
broadcast radio stations, television stations or news 350
organizations primarily serving in-state markets shall not be 351
included within the definition of the term "telecommunications 352
enterprises"; and 353
(xii) Controlled environment agriculture 354
enterprises meeting minimum criteria established by the 355
Mississippi Development Authority. 356
The new enterprises enumerated in this paragraph (a) do not 357
include medical cannabis establishments as defined in Section 358
41-137-3 of the Mississippi Medical Cannabis Act. 359
(b) An exemption from ad valorem taxes granted under 360
this section may include any or all tangible property, real or 361
personal, including any leasehold interests therein but excluding 362
automobiles and trucks operating on and over the highways of the 363
State of Mississippi, used in connection with, or necessary to, 364
the operation of an enterprise enumerated in paragraph (a) of this 365
subsection (3), whether or not such property is owned, leased, 366
subleased, licensed or otherwise obtained by such enterprise, 367
irrespective of the taxpayer to which any such leased property is 368
assessed for ad valorem tax purposes. If an exemption is granted 369
pursuant to this section with respect to any leasehold interest 370
under a lease, sublease or license of tangible property used in 371
connection with, or necessary to, the operation of an enterprise 372
enumerated in paragraph (a) of this subsection (3), the 373
corresponding ownership interest of the owner, lessor and 374
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 16 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
sublessor of such tangible property shall similarly and 375
automatically be exempt without any action being required to be 376
taken by such owner, lessor or sublessor. 377
(4) Any exemption from ad valorem taxes granted under this 378
section before March 28, 2019, and consistent herewith, is hereby 379
ratified, approved and confirmed. 380
SECTION 8. Section 27-31-104, Mississippi Code of 1972, is 381
amended as follows: 382
[Through June 30, * * * 2029, this section shall read as 383
follows:] 384
27-31-104. (1) (a) County boards of supervisors and 385
municipal authorities are each hereby authorized and empowered to 386
enter into an agreement with an enterprise granting, and pursuant 387
to such agreement grant a fee-in-lieu of ad valorem taxes, 388
including ad valorem taxes levied for school purposes, for the 389
following: 390
(i) Projects totaling over Sixty Million Dollars 391
($60,000,000.00) by any new enterprises enumerated in Section 392
27-31-101; 393
(ii) Projects by a private company (as such term 394
is defined in Section 57-61-5) having a minimum capital investment 395
of Sixty Million Dollars ($60,000,000.00); 396
(iii) Projects by a qualified business (as such 397
term is defined in Section 57-117-3) meeting minimum criteria 398
established by the Mississippi Development Authority; 399
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 17 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
(iv) Projects, in addition to those projects 400
referenced in Section 27-31-105, totaling over Sixty Million 401
Dollars ($60,000,000.00) by an existing enterprise that has been 402
doing business in the county or municipality for twenty-four (24) 403
months. For purposes of this subparagraph (iv), the term 404
"existing enterprise" includes those enterprises enumerated in 405
Section 27-31-101; or 406
(v) A private company (as such term is defined in 407
Section 57-61-5) or entity defined in Section 77-3-3(d)(i) having 408
a minimum capital investment of One Hundred Million Dollars 409
($100,000,000.00) from any source or combination of sources, 410
provided that a majority of the capital investment is from private 411
sources, when such project is located within a geographic area for 412
which a Presidential Disaster Declaration was issued on or after 413
January 1, 2014. 414
County boards of supervisors and municipal authorities may 415
not enter into an agreement with an enterprise that is a medical 416
cannabis establishment, as defined in Section 41-137-3 of the 417
Mississippi Medical Cannabis Act, granting, and pursuant to such 418
agreement grant a fee-in-lieu of ad valorem taxes. 419
(b) A fee-in-lieu of ad valorem taxes granted in 420
accordance with this section may include any or all tangible 421
property, real or personal, including any leasehold interests 422
therein but excluding automobiles and trucks operating on and over 423
the highways of the State of Mississippi, used in connection with, 424
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 18 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
or necessary to, the operation of any enterprise, private company 425
or business described in paragraph (a) of this subsection (1), as 426
applicable, whether or not such property is owned, leased, 427
subleased, licensed or otherwise obtained by such enterprise, 428
private company or business, as applicable, irrespective of the 429
taxpayer to which any such leased property is assessed for ad 430
valorem tax purposes. If a fee-in-lieu of ad valorem taxes is 431
granted pursuant to this section with respect to any leasehold 432
interest under a lease, sublease or license of tangible property 433
used in connection with, or necessary to, the operation of an 434
enterprise, private company or business described in paragraph (a) 435
of this subsection (1), as applicable, the corresponding ownership 436
interest of the owner, lessor and sublessor of such tangible 437
property shall similarly and automatically be exempt and subject 438
to the fee-in-lieu granted in accordance herewith without any 439
action being required to be taken by such owner, lessor or 440
sublessor. 441
(2) A county board of supervisors may enter into a 442
fee-in-lieu agreement on behalf of the county and any county 443
school district, and a municipality may enter into such a 444
fee-in-lieu agreement on behalf of the municipality and any 445
municipal school district located in the municipality; however, if 446
the project is located outside the limits of a municipality but 447
within the boundaries of the municipal school district, then the 448
county board of supervisors may enter into such a fee-in-lieu 449
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 19 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
agreement on behalf of the school district granting a fee-in-lieu 450
of ad valorem taxes for school district purposes. 451
(3) Any grant of a fee-in-lieu of ad valorem taxes shall be 452
evidenced by a written agreement negotiated by the enterprise and 453
the county board of supervisors and/or municipal authority, as the 454
case may be, and given final approval by the Mississippi 455
Development Authority as satisfying the requirements of this 456
section. 457
(4) The minimum sum allowable as a fee-in-lieu shall not be 458
less than one-third (1/3), or one-tenth (1/10) if the project is 459
also a project eligible for an ad valorem tax exemption under 460
Section 27-31-46 and a fee-in-lieu agreement is entered into 461
before July 1, 2026, of the ad valorem levy, including ad valorem 462
taxes for school district purposes, and except as otherwise 463
provided, the sum allowed shall be apportioned between the county 464
or municipality, as appropriate, and the school districts in such 465
amounts as may be determined by the county board of supervisors or 466
municipal governing authority, as the case may be, however, except 467
as otherwise provided in this section, from the sum allowed the 468
apportionment to school districts shall not be less than the 469
school districts' pro rata share based upon the proportion that 470
the millage imposed for the school districts by the appropriate 471
levying authority bears to the millage imposed by such levying 472
authority for all other county or municipal purposes. Any 473
fee-in-lieu agreement entered into under this section shall become 474
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 20 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
a binding obligation of the parties to the agreement, be effective 475
upon its execution by the parties and approval by the Mississippi 476
Development Authority and, except as otherwise provided in Section 477
17-25-23 or Section 57-75-33, or any other provision of law, 478
continue in effect for a period not to exceed thirty (30) years 479
commencing on the date that the fee-in-lieu granted thereunder 480
begins in accordance with the agreement; however, no particular 481
parcel of land, real property improvement or item of personal 482
property shall be subject to a fee-in-lieu for a duration of more 483
than ten (10) years. Any such agreement shall be binding, 484
according to its terms, on future boards of supervisors of the 485
county and/or governing authorities of a municipality, as the case 486
may be, for the duration of the agreement. 487
(5) The fee-in-lieu may be a stated fraction or percentage 488
of the ad valorem taxes otherwise payable or a stated dollar 489
amount. If the fee is a fraction or percentage of the ad valorem 490
tax levy, it shall be annually computed on all ad valorem taxes 491
otherwise payable, including school taxes, as the same may vary 492
from year to year based upon changes in the millage rate or 493
assessed value and shall not be less than one-third (1/3) of that 494
amount or one-tenth (1/10) of that amount if the project is also a 495
project eligible for an ad valorem tax exemption under Section 496
27-31-46 and a fee-in-lieu agreement is entered into before July 497
1, 2026. If the fee is a stated dollar amount, said amount shall 498
be the higher of the sum provided for fixed payment or (a) 499
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 21 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
one-third (1/3) of the total of all ad valorem taxes otherwise 500
payable as annually determined during each year of the fee-in-lieu 501
or (b) if the project is also a project eligible for an ad valorem 502
tax exemption under Section 27-31-46 and a fee-in-lieu agreement 503
is entered into before July 1, 2026, one-tenth (1/10) of the total 504
of all ad valorem taxes otherwise payable as annually determined 505
during each year of the fee-in-lieu. 506
(6) Notwithstanding Section 27-31-111, the parties to a 507
fee-in-lieu may agree on terms and conditions providing for the 508
reduction, suspension, termination or reinstatement of a 509
fee-in-lieu agreement or any fee-in-lieu period granted thereunder 510
upon the cessation of operations by project for twelve (12) or 511
more consecutive months or due to other conditions set forth in 512
the agreement. 513
(7) For a project as defined in Section 57-75-5(f)(xxi) and 514
located in a county that is a member of a regional economic 515
development alliance created under Section 57-64-1 et seq., the 516
members of the regional economic development alliance may divide 517
the sum allowed as a fee-in-lieu in a manner as determined by the 518
alliance agreement, and the boards of supervisors of the member 519
counties may then apportion the sum allowed between school 520
district purposes and all other county purposes. 521
(8) For a project as defined in Section 57-75-5(f)(xxvi), 522
the board of supervisors of the county in which the project is 523
located may negotiate with the school district in which the 524
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 22 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
project is located and apportion to the school district an amount 525
of the fee-in-lieu that is agreed upon in the negotiations 526
different than the amount provided for in subsection (3) of this 527
section. 528
(9) For a project as defined in Section 57-75-5(f)(xxviii), 529
the annual amount of the fee-in-lieu apportioned to the county 530
shall not be less than the amount necessary to pay the debt 531
service on bonds issued by the county pursuant to Section 532
57-75-37(3)(c). 533
(10) For any county and/or municipality that enters into a 534
fee-in-lieu agreement for a project as defined in Section 535
57-75-5(f)(xxxiii), the minimum sum allowable as a fee-in-lieu for 536
the project shall not be less than one-third (1/3); provided that 537
such allowed sum of each annual fee-in-lieu payment may be first 538
apportioned between the county or municipality, as appropriate, 539
and the school districts in any such amounts as may be determined 540
by the county board of supervisors or municipal governing 541
authority, as the case may be, to either: (a) first allocate and 542
remit to the Mississippi Major Economic Impact Authority or the 543
Mississippi Development Authority, as applicable, such portion of 544
each annual fee-in-lieu payment to repay to the Mississippi Major 545
Economic Impact Authority or the Mississippi Development 546
Authority, as applicable, funds advanced thereby to such county 547
and/or municipality or to other public agency, as defined in 548
Section 57-75-37(7)(a)(ii), to fund public improvements and 549
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 23 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
related costs for the project pursuant to an agreement entered 550
into in accordance with Section 57-75-37(7)(c)(iii); or (b) first 551
allocate and remit to the enterprise owning and/or operating the 552
project such portion of each annual fee-in-lieu payment payable 553
thereto pursuant to an agreement entered into in accordance with 554
Section 57-75-37(7)(d)(iv). The balance of any annual fee-in-lieu 555
amount remaining after such initial allocation and remittance to 556
the Mississippi Major Economic Impact Authority, Mississippi 557
Development Authority or enterprise owning and/or operating the 558
project, as applicable, shall then be apportioned in accordance 559
with subsection (4) of this section or as otherwise authorized by 560
state law. 561
(11) Any fee-in-lieu of ad valorem taxes granted under this 562
section before March 28, 2019, and consistent herewith, is hereby 563
ratified, approved and confirmed. 564
[From and after July 1, * * * 2029, this section shall read 565
as follows:] 566
27-31-104. (1) (a) County boards of supervisors and 567
municipal authorities are each hereby authorized and empowered to 568
enter into an agreement with an enterprise granting, and pursuant 569
to such agreement grant a fee-in-lieu of ad valorem taxes, 570
including ad valorem taxes levied for school purposes, for the 571
following: 572
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 24 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
(i) Projects totaling over Sixty Million Dollars 573
($60,000,000.00) by any new enterprises enumerated in Section 574
27-31-101; 575
(ii) Projects by a private company (as such term 576
is defined in Section 57-61-5, Mississippi Code of 1972) having a 577
minimum capital investment of Sixty Million Dollars 578
($60,000,000.00); 579
(iii) Projects, in addition to those projects 580
referenced in Section 27-31-105, totaling over Sixty Million 581
Dollars ($60,000,000.00) by an existing enterprise that has been 582
doing business in the county or municipality for twenty-four (24) 583
months. For purposes of this subparagraph (iii), the term 584
"existing enterprise" includes those enterprises enumerated in 585
Section 27-31-101; or 586
(iv) A private company (as such term is defined in 587
Section 57-61-5) or entity defined in Section 77-3-3(d)(i) having 588
a minimum capital investment of One Hundred Million Dollars 589
($100,000,000.00) from any source or combination of sources, 590
provided that a majority of the capital investment is from private 591
sources, when such project is located within a geographic area for 592
which a Presidential Disaster Declaration was issued on or after 593
January 1, 2014. 594
County boards of supervisors and municipal authorities may 595
not enter into an agreement with an enterprise that is a medical 596
cannabis establishment, as defined in Section 41-137-3 of the 597
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 25 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
Mississippi Medical Cannabis Act, granting, and pursuant to such 598
agreement grant a fee-in-lieu of ad valorem taxes. 599
(b) A fee-in-lieu of ad valorem taxes granted in 600
accordance with this section may include any or all tangible 601
property, real or personal, including any leasehold interests 602
therein but excluding automobiles and trucks operating on and over 603
the highways of the State of Mississippi, used in connection with, 604
or necessary to, the operation of any enterprise, private company 605
or business described in paragraph (a) of this subsection (1), as 606
applicable, whether or not such property is owned, leased, 607
subleased, licensed or otherwise obtained by such enterprise, 608
private company or business, as applicable, irrespective of the 609
taxpayer to which any such leased property is assessed for ad 610
valorem tax purposes. If a fee-in-lieu of ad valorem taxes is 611
granted pursuant to this section with respect to any leasehold 612
interest under a lease, sublease or license of tangible property 613
used in connection with, or necessary to, the operation of an 614
enterprise, private company or business described in paragraph (a) 615
of this subsection (1), as applicable, the corresponding ownership 616
interest of the owner, lessor and sublessor of such tangible 617
property shall similarly and automatically be exempt and subject 618
to the fee-in-lieu granted in accordance herewith without any 619
action being required to be taken by such owner, lessor or 620
sublessor. 621
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 26 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
(2) A county board of supervisors may enter into a 622
fee-in-lieu agreement on behalf of the county and any county 623
school district, and a municipality may enter into such a 624
fee-in-lieu agreement on behalf of the municipality and any 625
municipal school district located in the municipality; however, if 626
the project is located outside the limits of a municipality but 627
within the boundaries of the municipal school district, then the 628
county board of supervisors may enter into such a fee-in-lieu 629
agreement on behalf of the school district granting a fee-in-lieu 630
of ad valorem taxes for school district purposes. 631
(3) Any grant of a fee-in-lieu of ad valorem taxes shall be 632
evidenced by a written agreement negotiated by the enterprise and 633
the county board of supervisors and/or municipal authority, as the 634
case may be, and given final approval by the Mississippi 635
Development Authority as satisfying the requirements of this 636
section. 637
(4) The minimum sum allowable as a fee-in-lieu shall not be 638
less than one-third (1/3), or one-tenth (1/10) if the project is 639
also a project eligible for an ad valorem tax exemption under 640
Section 27-31-46 and a fee-in-lieu agreement is entered into 641
before July 1, 2026, of the ad valorem levy, including ad valorem 642
taxes for school district purposes, and except as otherwise 643
provided, the sum allowed shall be apportioned between the county 644
or municipality, as appropriate, and the school districts in such 645
amounts as may be determined by the county board of supervisors or 646
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 27 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
municipal governing authority, as the case may be, however, except 647
as otherwise provided in this section, from the sum allowed the 648
apportionment to school districts shall not be less than the 649
school districts' pro rata share based upon the proportion that 650
the millage imposed for the school districts by the appropriate 651
levying authority bears to the millage imposed by such levying 652
authority for all other county or municipal purposes. Any 653
fee-in-lieu agreement entered into under this section shall become 654
a binding obligation of the parties to the agreement, be effective 655
upon its execution by the parties and approval by the Mississippi 656
Development Authority and, except as otherwise provided in Section 657
17-25-23 or Section 57-75-33, or any other provision of law, 658
continue in effect for a period not to exceed thirty (30) years 659
commencing on the date that the fee-in-lieu granted thereunder 660
begins in accordance with the agreement; however, no particular 661
parcel of land, real property improvement or item of personal 662
property shall be subject to a fee-in-lieu for a duration of more 663
than ten (10) years. Any such agreement shall be binding, 664
according to its terms, on future boards of supervisors of the 665
county and/or governing authorities of a municipality, as the case 666
may be, for the duration of the agreement. 667
(5) The fee-in-lieu may be a stated fraction or percentage 668
of the ad valorem taxes otherwise payable or a stated dollar 669
amount. If the fee is a fraction or percentage of the ad valorem 670
tax levy, it shall be annually computed on all ad valorem taxes 671
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 28 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
otherwise payable, including school taxes, as the same may vary 672
from year to year based upon changes in the millage rate or 673
assessed value and shall not be less than one-third (1/3) of that 674
amount or one-tenth (1/10) of that amount if the project is also a 675
project eligible for an ad valorem tax exemption under Section 676
27-31-46 and a fee-in-lieu agreement is entered into before July 677
1, 2026. If the fee is a stated dollar amount, said amount shall 678
be the higher of the sum provided for fixed payment or (a) 679
one-third (1/3) of the total of all ad valorem taxes otherwise 680
payable as annually determined during each year of the fee-in-lieu 681
or (b) if the project is also a project eligible for an ad valorem 682
tax exemption under Section 27-31-46 and a fee-in-lieu agreement 683
is entered into before July 1, 2026, one-tenth (1/10) of the total 684
of all ad valorem taxes otherwise payable as annually determined 685
during each year of the fee-in-lieu. 686
(6) Notwithstanding Section 27-31-111, the parties to a 687
fee-in-lieu may agree on terms and conditions providing for the 688
reduction, suspension, termination or reinstatement of a 689
fee-in-lieu agreement or any fee-in-lieu period granted thereunder 690
upon the cessation of operations by project for twelve (12) or 691
more consecutive months or due to other conditions set forth in 692
the agreement. 693
(7) For a project as defined in Section 57-75-5(f)(xxi) and 694
located in a county that is a member of a regional economic 695
development alliance created under Section 57-64-1 et seq., the 696
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 29 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
members of the regional economic development alliance may divide 697
the sum allowed as a fee-in-lieu in a manner as determined by the 698
alliance agreement, and the boards of supervisors of the member 699
counties may then apportion the sum allowed between school 700
district purposes and all other county purposes. 701
(8) For a project as defined in Section 57-75-5(f)(xxvi), 702
the board of supervisors of the county in which the project is 703
located may negotiate with the school district in which the 704
project is located and apportion to the school district an amount 705
of the fee-in-lieu that is agreed upon in the negotiations 706
different than the amount provided for in subsection (3) of this 707
section. 708
(9) For a project as defined in Section 57-75-5(f)(xxviii), 709
the annual amount of the fee-in-lieu apportioned to the county 710
shall not be less than the amount necessary to pay the annual debt 711
service on bonds issued by the county pursuant to Section 712
57-75-37(3)(c). 713
(10) For any county and/or municipality that enters into a 714
fee-in-lieu agreement for a project as defined in Section 715
57-75-5(f)(xxxiii), the minimum sum allowable as a fee-in-lieu for 716
the project shall not be less than one-third (1/3); provided that 717
such allowed sum of each annual fee-in-lieu payment may be first 718
apportioned between the county or municipality, as appropriate, 719
and the school districts in any such amounts as may be determined 720
by the county board of supervisors or municipal governing 721
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 30 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
authority, as the case may be, to either: (a) first allocate and 722
remit to the Mississippi Major Economic Impact Authority or the 723
Mississippi Development Authority, as applicable, such portion of 724
each annual fee-in-lieu payment to repay to the Mississippi Major 725
Economic Impact Authority or the Mississippi Development 726
Authority, as applicable, funds advanced thereby to such county 727
and/or municipality or to other public agency, as defined in 728
Section 57-75-37(7)(a)(ii), to fund public improvements and 729
related costs for the project pursuant to an agreement entered 730
into in accordance with Section 57-75-37(7)(c)(iii); or (b) first 731
allocate and remit to the enterprise owning and/or operating the 732
project such portion of each annual fee-in-lieu payment payable 733
thereto pursuant to an agreement entered into in accordance with 734
Section 57-75-37(7)(d)(iv). The balance of any annual fee-in-lieu 735
amount remaining after such initial allocation and remittance to 736
the Mississippi Major Economic Impact Authority, Mississippi 737
Development Authority or enterprise owning and/or operating the 738
project, as applicable, shall then be apportioned in accordance 739
with subsection (4) of this section or as otherwise authorized by 740
state law. 741
(11) Any fee-in-lieu of ad valorem taxes granted under this 742
section before March 28, 2019, and consistent herewith, is hereby 743
ratified, approved and confirmed. 744
SECTION 9. Section 27-65-101, Mississippi Code of 1972, is 745
amended as follows: 746
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 31 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
27-65-101. (1) The exemptions from the provisions of this 747
chapter which are of an industrial nature or which are more 748
properly classified as industrial exemptions than any other 749
exemption classification of this chapter shall be confined to 750
those persons or property exempted by this section or by the 751
provisions of the Constitution of the United States or the State 752
of Mississippi. No industrial exemption as now provided by any 753
other section except Section 57-3-33 shall be valid as against the 754
tax herein levied. Any subsequent industrial exemption from the 755
tax levied hereunder shall be provided by amendment to this 756
section. No exemption provided in this section shall apply to 757
taxes levied by Section 27-65-15 or 27-65-21. 758
The tax levied by this chapter shall not apply to the 759
following: 760
(a) Sales of boxes, crates, cartons, cans, bottles and 761
other packaging materials to manufacturers and wholesalers for use 762
as containers or shipping materials to accompany goods sold by 763
said manufacturers or wholesalers where possession thereof will 764
pass to the customer at the time of sale of the goods contained 765
therein and sales to anyone of containers or shipping materials 766
for use in ships engaged in international commerce. 767
(b) Sales of raw materials, catalysts, processing 768
chemicals, welding gases or other industrial processing gases 769
(except natural gas) to a manufacturer for use directly in 770
manufacturing or processing a product for sale or rental or 771
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 32 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
repairing or reconditioning vessels or barges of fifty (50) tons 772
load displacement and over. For the purposes of this exemption, 773
electricity used directly in the electrolysis process in the 774
production of sodium chlorate shall be considered a raw material. 775
This exemption shall not apply to any property used as fuel except 776
to the extent that such fuel comprises by-products which have no 777
market value. 778
(c) The gross proceeds of sales of dry docks, offshore 779
drilling equipment for use in oil or natural gas exploration or 780
production, vessels or barges of fifty (50) tons load displacement 781
and over, when the vessels or barges are sold by the manufacturer 782
or builder thereof. In addition to other types of equipment, 783
offshore drilling equipment for use in oil or natural gas 784
exploration or production shall include aircraft used 785
predominately to transport passengers or property to or from 786
offshore oil or natural gas exploration or production platforms or 787
vessels, and engines, accessories and spare parts for such 788
aircraft. 789
(d) Sales to commercial fishermen of commercial fishing 790
boats of over five (5) tons load displacement and not more than 791
fifty (50) tons load displacement as registered with the United 792
States Coast Guard and licensed by the Mississippi Commission on 793
Marine Resources. 794
(e) The gross income from repairs to vessels and barges 795
engaged in foreign trade or interstate transportation. 796
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 33 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
(f) Sales of petroleum products to vessels or barges 797
for consumption in marine international commerce or interstate 798
transportation businesses. 799
(g) Sales and rentals of rail rolling stock (and 800
component parts thereof) for ultimate use in interstate commerce 801
and gross income from services with respect to manufacturing, 802
repairing, cleaning, altering, reconditioning or improving such 803
rail rolling stock (and component parts thereof). 804
(h) Sales of raw materials, catalysts, processing 805
chemicals, welding gases or other industrial processing gases 806
(except natural gas) used or consumed directly in manufacturing, 807
repairing, cleaning, altering, reconditioning or improving such 808
rail rolling stock (and component parts thereof). This exemption 809
shall not apply to any property used as fuel. 810
(i) Sales of machinery or tools or repair parts 811
therefor or replacements thereof, fuel or supplies used directly 812
in manufacturing, converting or repairing ships, vessels or barges 813
of three thousand (3,000) tons load displacement and over, but not 814
to include office and plant supplies or other equipment not 815
directly used on the ship, vessel or barge being built, converted 816
or repaired. For purposes of this exemption, "ships, vessels or 817
barges" shall not include floating structures described in Section 818
27-65-18. 819
(j) Sales of tangible personal property to persons 820
operating ships in international commerce for use or consumption 821
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 34 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
on board such ships. This exemption shall be limited to cases in 822
which procedures satisfactory to the commissioner, ensuring 823
against use in this state other than on such ships, are 824
established. 825
(k) Sales of materials used in the construction of a 826
building, or any addition or improvement thereon, and sales of any 827
machinery and equipment not later than three (3) months after the 828
completion of construction of the building, or any addition 829
thereon, to be used therein, to qualified businesses, as defined 830
in Section 57-51-5, which are located in a county or portion 831
thereof designated as an enterprise zone pursuant to Sections 832
57-51-1 through 57-51-15. 833
(l) Sales of materials used in the construction of a 834
building, or any addition or improvement thereon, and sales of any 835
machinery and equipment not later than three (3) months after the 836
completion of construction of the building, or any addition 837
thereon, to be used therein, to qualified businesses, as defined 838
in Section 57-54-5. 839
(m) Income from storage and handling of perishable 840
goods by a public storage warehouse. 841
(n) The value of natural gas lawfully injected into the 842
earth for cycling, repressuring or lifting of oil, or lawfully 843
vented or flared in connection with the production of oil; 844
however, if any gas so injected into the earth is sold for such 845
purposes, then the gas so sold shall not be exempt. 846
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 35 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
(o) The gross collections from self-service commercial 847
laundering, drying, cleaning and pressing equipment. 848
(p) Sales of materials used in the construction of a 849
building, or any addition or improvement thereon, and sales of any 850
machinery and equipment not later than three (3) months after the 851
completion of construction of the building, or any addition 852
thereon, to be used therein, to qualified companies, certified as 853
such by the Mississippi Development Authority under Section 854
57-53-1. 855
(q) Sales of component materials used in the 856
construction of a building, or any addition or improvement 857
thereon, sales of machinery and equipment to be used therein, and 858
sales of manufacturing or processing machinery and equipment which 859
is permanently attached to the ground or to a permanent foundation 860
and which is not by its nature intended to be housed within a 861
building structure, not later than three (3) months after the 862
initial start-up date, to permanent business enterprises engaging 863
in manufacturing or processing in Tier Three areas (as such term 864
is defined in Section 57-73-21), which businesses are certified by 865
the Department of Revenue as being eligible for the exemption 866
granted in this paragraph (q). The exemption provided in this 867
paragraph (q) shall not apply to sales to any business enterprise 868
that is a medical cannabis establishment as defined in Section 869
41-137-3 of the Mississippi Medical Cannabis Act. 870
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 36 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
(r) (i) Sales of component materials used in the 871
construction of a building, or any addition or improvement 872
thereon, and sales of any machinery and equipment not later than 873
three (3) months after the completion of the building, addition or 874
improvement thereon, to be used therein, for any company 875
establishing or transferring its national or regional headquarters 876
from within or outside the State of Mississippi and creating a 877
minimum of twenty (20) jobs at the new headquarters in this state. 878
The exemption provided in this subparagraph (i) shall not apply to 879
sales for any company that is a medical cannabis establishment as 880
defined in Section 41-137-3 of the Mississippi Medical Cannabis 881
Act. The Department of Revenue shall establish criteria and 882
prescribe procedures to determine if a company qualifies as a 883
national or regional headquarters for the purpose of receiving the 884
exemption provided in this subparagraph (i). 885
(ii) Sales of component materials used in the 886
construction of a building, or any addition or improvement 887
thereon, and sales of any machinery and equipment not later than 888
three (3) months after the completion of the building, addition or 889
improvement thereon, to be used therein, for any company expanding 890
or making additions after January 1, 2013, to its national or 891
regional headquarters within the State of Mississippi and creating 892
a minimum of twenty (20) new jobs at the headquarters as a result 893
of the expansion or additions. The exemption provided in this 894
subparagraph (ii) shall not apply to sales for any company that is 895
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 37 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
a medical cannabis establishment as defined in Section 41-137-3 of 896
the Mississippi Medical Cannabis Act. The Department of Revenue 897
shall establish criteria and prescribe procedures to determine if 898
a company qualifies as a national or regional headquarters for the 899
purpose of receiving the exemption provided in this subparagraph 900
(ii). 901
(s) The gross proceeds from the sale of semitrailers, 902
trailers, boats, travel trailers, motorcycles, all-terrain cycles 903
and rotary-wing aircraft if exported from this state within 904
forty-eight (48) hours and registered and first used in another 905
state. 906
(t) Gross income from the storage and handling of 907
natural gas in underground salt domes and in other underground 908
reservoirs, caverns, structures and formations suitable for such 909
storage. 910
(u) Sales of machinery and equipment to nonprofit 911
organizations if the organization: 912
(i) Is tax exempt pursuant to Section 501(c)(4) of 913
the Internal Revenue Code of 1986, as amended; 914
(ii) Assists in the implementation of the 915
contingency plan or area contingency plan, and which is created in 916
response to the requirements of Title IV, Subtitle B of the Oil 917
Pollution Act of 1990, Public Law 101-380; and 918
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 38 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
(iii) Engages primarily in programs to contain, 919
clean up and otherwise mitigate spills of oil or other substances 920
occurring in the United States coastal and tidal waters. 921
For purposes of this exemption, "machinery and equipment" 922
means any ocean-going vessels, barges, booms, skimmers and other 923
capital equipment used primarily in the operations of nonprofit 924
organizations referred to herein. 925
(v) Sales or leases of materials and equipment to 926
approved business enterprises as provided under the Growth and 927
Prosperity Act. 928
(w) From and after July 1, 2001, sales of pollution 929
control equipment to manufacturers or custom processors for 930
industrial use. For the purposes of this exemption, "pollution 931
control equipment" means equipment, devices, machinery or systems 932
used or acquired to prevent, control, monitor or reduce air, water 933
or groundwater pollution, or solid or hazardous waste as required 934
by federal or state law or regulation. 935
(x) Sales or leases to a manufacturer of motor vehicles 936
or powertrain components operating a project that has been 937
certified by the Mississippi Major Economic Impact Authority as a 938
project as defined in Section 57-75-5(f)(iv)1, Section 939
57-75-5(f)(xxi) or Section 57-75-5(f)(xxii) of machinery and 940
equipment; special tooling such as dies, molds, jigs and similar 941
items treated as special tooling for federal income tax purposes; 942
or repair parts therefor or replacements thereof; repair services 943
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 39 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
thereon; fuel, supplies, electricity, coal and natural gas used 944
directly in the manufacture of motor vehicles or motor vehicle 945
parts or used to provide climate control for manufacturing areas. 946
(y) Sales or leases of component materials, machinery 947
and equipment used in the construction of a building, or any 948
addition or improvement thereon to an enterprise operating a 949
project that has been certified by the Mississippi Major Economic 950
Impact Authority as a project as defined in Section 951
57-75-5(f)(iv)1, Section 57-75-5(f)(xxi), Section 57-75-5(f)(xxii) 952
or Section 57-75-5(f)(xxviii) and any other sales or leases 953
required to establish or operate such project. 954
(z) Sales of component materials and equipment to a 955
business enterprise as provided under Section 57-64-33. 956
(aa) The gross income from the stripping and painting 957
of commercial aircraft engaged in foreign or interstate 958
transportation business. 959
(bb) [Repealed] 960
(cc) Sales or leases to an enterprise owning or 961
operating a project that has been designated by the Mississippi 962
Major Economic Impact Authority as a project as defined in Section 963
57-75-5(f)(xviii) of machinery and equipment; special tooling such 964
as dies, molds, jigs and similar items treated as special tooling 965
for federal income tax purposes; or repair parts therefor or 966
replacements thereof; repair services thereon; fuel, supplies, 967
electricity, coal and natural gas used directly in the 968
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 40 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
manufacturing/production operations of the project or used to 969
provide climate control for manufacturing/production areas. 970
(dd) Sales or leases of component materials, machinery 971
and equipment used in the construction of a building, or any 972
addition or improvement thereon to an enterprise owning or 973
operating a project that has been designated by the Mississippi 974
Major Economic Impact Authority as a project as defined in Section 975
57-75-5(f)(xviii) and any other sales or leases required to 976
establish or operate such project. 977
(ee) Sales of parts used in the repair and servicing of 978
aircraft not registered in Mississippi engaged exclusively in the 979
business of foreign or interstate transportation to businesses 980
engaged in aircraft repair and maintenance. 981
(ff) Sales of component materials used in the 982
construction of a facility, or any addition or improvement 983
thereon, and sales or leases of machinery and equipment not later 984
than three (3) months after the completion of construction of the 985
facility, or any addition or improvement thereto, to be used in 986
the building or any addition or improvement thereto, to a 987
permanent business enterprise operating a data/information 988
enterprise in Tier Three areas (as such areas are designated in 989
accordance with Section 57-73-21), meeting minimum criteria 990
established by the Mississippi Development Authority. The 991
exemption provided in this paragraph (ff) shall not apply to sales 992
to any business enterprise that is a medical cannabis 993
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 41 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
establishment as defined in Section 41-137-3 of the Mississippi 994
Medical Cannabis Act. 995
(gg) Sales of component materials used in the 996
construction of a facility, or any addition or improvement 997
thereto, and sales of machinery and equipment not later than three 998
(3) months after the completion of construction of the facility, 999
or any addition or improvement thereto, to be used in the facility 1000
or any addition or improvement thereto, to technology intensive 1001
enterprises for industrial purposes in Tier Three areas (as such 1002
areas are designated in accordance with Section 57-73-21), as 1003
certified by the Department of Revenue. For purposes of this 1004
paragraph, an enterprise must meet the criteria provided for in 1005
Section 27-65-17(1)(f) in order to be considered a technology 1006
intensive enterprise. 1007
(hh) Sales of component materials used in the 1008
replacement, reconstruction or repair of a building or facility 1009
that has been destroyed or sustained extensive damage as a result 1010
of a disaster declared by the Governor, sales of machinery and 1011
equipment to be used therein to replace machinery or equipment 1012
damaged or destroyed as a result of such disaster, including, but 1013
not limited to, manufacturing or processing machinery and 1014
equipment which is permanently attached to the ground or to a 1015
permanent foundation and which is not by its nature intended to be 1016
housed within a building structure, to enterprises or companies 1017
that were eligible for the exemptions authorized in paragraph (q), 1018
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 42 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
(r), (ff) or (gg) of this subsection during initial construction 1019
of the building that was destroyed or damaged, which enterprises 1020
or companies are certified by the Department of Revenue as being 1021
eligible for the exemption granted in this paragraph. 1022
(ii) Sales of software or software services transmitted 1023
by the Internet to a destination outside the State of Mississippi 1024
where the first use of such software or software services by the 1025
purchaser occurs outside the State of Mississippi. 1026
(jj) Gross income of public storage warehouses derived 1027
from the temporary storage of raw materials that are to be used in 1028
an eligible facility as defined in Section 27-7-22.35. 1029
(kk) Sales of component building materials and 1030
equipment for initial construction of facilities or expansion of 1031
facilities as authorized under Sections 57-113-1 through 57-113-7 1032
and Sections 57-113-21 through 57-113-27. 1033
(ll) Sales and leases of machinery and equipment 1034
acquired in the initial construction to establish facilities as 1035
authorized in Sections 57-113-1 through 57-113-7. 1036
(mm) Sales and leases of replacement hardware, software 1037
or other necessary technology to operate a data center as 1038
authorized under Sections 57-113-21 through 57-113-27. 1039
(nn) Sales of component materials used in the 1040
construction of a building, or any addition or improvement 1041
thereon, and sales or leases of machinery and equipment not later 1042
than three (3) months after the completion of the construction of 1043
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 43 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
the facility, to be used in the facility, to permanent business 1044
enterprises operating a facility producing renewable crude oil 1045
from biomass harvested or produced, in whole or in part, in 1046
Mississippi, which businesses meet minimum criteria established by 1047
the Mississippi Development Authority. As used in this paragraph, 1048
the term "biomass" shall have the meaning ascribed to such term in 1049
Section 57-113-1. 1050
(oo) Sales of supplies, equipment and other personal 1051
property to an organization that is exempt from taxation under 1052
Section 501(c)(3) of the Internal Revenue Code and is the host 1053
organization coordinating a professional golf tournament played or 1054
to be played in this state and the supplies, equipment or other 1055
personal property will be used for purposes related to the golf 1056
tournament and related activities. 1057
(pp) Sales of materials used in the construction of a 1058
health care industry facility, as defined in Section 57-117-3, or 1059
any addition or improvement thereon, and sales of any machinery 1060
and equipment not later than three (3) months after the completion 1061
of construction of the facility, or any addition thereon, to be 1062
used therein, to qualified businesses, as defined in Section 1063
57-117-3. This paragraph shall be repealed from and after July 1064
1, * * * 2029. 1065
(qq) Sales or leases to a manufacturer of automotive 1066
parts operating a project that has been certified by the 1067
Mississippi Major Economic Impact Authority as a project as 1068
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 44 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
defined in Section 57-75-5(f)(xxviii) of machinery and equipment; 1069
or repair parts therefor or replacements thereof; repair services 1070
thereon; fuel, supplies, electricity, coal, nitrogen and natural 1071
gas used directly in the manufacture of automotive parts or used 1072
to provide climate control for manufacturing areas. 1073
(rr) Gross collections derived from guided tours on any 1074
navigable waters of this state, which include providing 1075
accommodations, guide services and/or related equipment operated 1076
by or under the direction of the person providing the tour, for 1077
the purposes of outdoor tourism. The exemption provided in this 1078
paragraph (rr) does not apply to the sale of tangible personal 1079
property by a person providing such tours. 1080
(ss) Retail sales of truck-tractors and semitrailers 1081
used in interstate commerce and registered under the International 1082
Registration Plan (IRP) or any similar reciprocity agreement or 1083
compact relating to the proportional registration of commercial 1084
vehicles entered into as provided for in Section 27-19-143. 1085
(tt) Sales exempt under the Facilitating Business Rapid 1086
Response to State Declared Disasters Act of 2015 (Sections 1087
27-113-1 through 27-113-9). 1088
(uu) Sales or leases to an enterprise and its 1089
affiliates operating a project that has been certified by the 1090
Mississippi Major Economic Impact Authority as a project as 1091
defined in Section 57-75-5(f)(xxix) of: 1092
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 45 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
(i) All personal property and fixtures, including 1093
without limitation, sales or leases to the enterprise and its 1094
affiliates of: 1095
1. Manufacturing machinery and equipment; 1096
2. Special tooling such as dies, molds, jigs 1097
and similar items treated as special tooling for federal income 1098
tax purposes; 1099
3. Component building materials, machinery 1100
and equipment used in the construction of buildings, and any other 1101
additions or improvements to the project site for the project; 1102
4. Nonmanufacturing furniture, fixtures and 1103
equipment (inclusive of all communications, computer, server, 1104
software and other hardware equipment); and 1105
5. Fuel, supplies (other than 1106
nonmanufacturing consumable supplies and water), electricity, 1107
nitrogen gas and natural gas used directly in the 1108
manufacturing/production operations of such project or used to 1109
provide climate control for manufacturing/production areas of such 1110
project; 1111
(ii) All replacements of, repair parts for or 1112
services to repair items described in subparagraph (i)1, 2 and 3 1113
of this paragraph; and 1114
(iii) All services taxable pursuant to Section 1115
27-65-23 required to establish, support, operate, repair and/or 1116
maintain such project. 1117
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 46 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
(vv) Sales or leases to an enterprise operating a 1118
project that has been certified by the Mississippi Major Economic 1119
Impact Authority as a project as defined in Section 1120
57-75-5(f)(xxx) of: 1121
(i) Purchases required to establish and operate 1122
the project, including, but not limited to, sales of component 1123
building materials, machinery and equipment required to establish 1124
the project facility and any additions or improvements thereon; 1125
and 1126
(ii) Machinery, special tools (such as dies, 1127
molds, and jigs) or repair parts thereof, or replacements and 1128
lease thereof, repair services thereon, fuel, supplies and 1129
electricity, coal and natural gas used in the manufacturing 1130
process and purchased by the enterprise owning or operating the 1131
project for the benefit of the project. 1132
(ww) Sales of component materials used in the 1133
construction of a building, or any expansion or improvement 1134
thereon, sales of machinery and/or equipment to be used therein, 1135
and sales of processing machinery and equipment which is 1136
permanently attached to the ground or to a permanent foundation 1137
which is not by its nature intended to be housed in a building 1138
structure, no later than three (3) months after initial startup, 1139
expansion or improvement of a permanent enterprise solely engaged 1140
in the conversion of natural sand into proppants used in oil and 1141
gas exploration and development with at least ninety-five percent 1142
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 47 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
(95%) of such proppants used in the production of oil and/or gas 1143
from horizontally drilled wells and/or horizontally drilled 1144
recompletion wells as defined in Sections 27-25-501 and 27-25-701. 1145
(xx) (i) Sales or leases to an enterprise operating a 1146
project that has been certified by the Mississippi Major Economic 1147
Impact Authority as a project as defined in Section 1148
57-75-5(f)(xxxi), for a period ending no later than one (1) year 1149
following completion of the construction of the facility or 1150
facilities comprising such project of all personal property and 1151
fixtures, including without limitation, sales or leases to the 1152
enterprise and its affiliates of: 1153
1. Manufacturing machinery and equipment; 1154
2. Special tooling such as dies, molds, jigs 1155
and similar items treated as special tooling for federal income 1156
tax purposes; 1157
3. Component building materials, machinery 1158
and equipment used in the construction of buildings, and any other 1159
additions or improvements to the project site for the project; 1160
4. Nonmanufacturing furniture, fixtures and 1161
equipment (inclusive of all communications, computer, server, 1162
software and other hardware equipment); 1163
5. Replacements of, repair parts for or 1164
services to repair items described in this subparagraph (i)1, 2 1165
and 3; and 1166
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 48 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
6. All services taxable pursuant to Section 1167
27-65-23 required to establish, support, operate, repair and/or 1168
maintain such project; and 1169
(ii) Sales or leases to an enterprise operating a 1170
project that has been certified by the Mississippi Major Economic 1171
Impact Authority as a project as defined in Section 1172
57-75-5(f)(xxxi) of electricity, current, power, steam, coal, 1173
natural gas, liquefied petroleum gas or other fuel, biomass, 1174
nitrogen or other atmospheric or other industrial gases used 1175
directly by the enterprise in the manufacturing/production 1176
operations of its project or used to provide climate control for 1177
manufacturing/production areas (which manufacturing/production 1178
areas shall be apportioned based on square footage). As used in 1179
this paragraph, the term "biomass" shall have the meaning ascribed 1180
to such term in Section 57-113-1. 1181
(yy) The gross proceeds from the sale of any item of 1182
tangible personal property by the manufacturer or custom processor 1183
thereof if such item is shipped, transported or exported from this 1184
state and first used in another state, whether such shipment, 1185
transportation or exportation is made by the seller, purchaser, or 1186
any third party acting on behalf of such party. For the purposes 1187
of this paragraph (yy), any instruction to, training of or 1188
inspection by the purchaser with respect to the item prior to 1189
shipment, transportation or exportation of the item shall not 1190
constitute a first use of such item within this state. 1191
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 49 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
(zz) (i) Sales or leases to an enterprise operating a 1192
project that has been certified by the Mississippi Major Economic 1193
Impact Authority as a project as defined in Section 1194
57-75-5(f)(xxxii), for a period ending no later than one (1) year 1195
following completion of the construction of the facility or 1196
facilities comprising such project of all personal property and 1197
fixtures, including, without limitation, sales or leases to the 1198
enterprise and its affiliates of: 1199
1. Manufacturing machinery and equipment; 1200
2. Special tooling such as dies, molds, jigs 1201
and similar items treated as special tooling for federal income 1202
tax purposes; 1203
3. Component building materials, machinery 1204
and equipment used in the construction of buildings, and any other 1205
additions or improvements to the project site for the project; 1206
4. Nonmanufacturing furniture, fixtures and 1207
equipment (inclusive of all communications, computer, server, 1208
software and other hardware equipment); 1209
5. Replacements of, repair parts for or 1210
services to repair items described in this subparagraph (i)1, 2 1211
and 3; and 1212
6. All services taxable pursuant to Section 1213
27-65-23 required to establish, support, operate, repair and/or 1214
maintain such project; and 1215
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 50 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
(ii) Sales or leases to an enterprise operating a 1216
project that has been certified by the Mississippi Major Economic 1217
Impact Authority as a project as defined in Section 1218
57-75-5(f)(xxxii) of electricity, current, power, steam, coal, 1219
natural gas, liquefied petroleum gas or other fuel, biomass, 1220
nitrogen or other atmospheric or other industrial gases used 1221
directly by the enterprise in the manufacturing/production 1222
operations of its project or used to provide climate control for 1223
manufacturing/production areas (which manufacturing/production 1224
areas shall be apportioned based on square footage). As used in 1225
this paragraph, the term "biomass" shall have the meaning ascribed 1226
to such term in Section 57-113-1. 1227
(aaa) Sales or leases to an enterprise and/or any 1228
affiliates thereof operating a project that has been certified by 1229
the Mississippi Major Economic Impact Authority as a project as 1230
defined in Section 57-75-5(f)(xxxiii) of: 1231
(i) Component building materials, fixtures, 1232
machinery and equipment used in the construction of a data 1233
processing facility or other buildings comprising all or part of a 1234
project, for a period ending no later than one (1) year following 1235
completion of the construction of the data processing facility or 1236
such other building; and 1237
(ii) All equipment and other personal property 1238
needed to establish and operate the project and any expansions 1239
thereof or additions thereto, including, but not limited to: 1240
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 51 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
1. Communications, computer, server, 1241
software, connectivity materials and equipment, emergency power 1242
generation equipment, other hardware equipment and any other 1243
technology; 1244
2. All replacements of, and repair parts for, 1245
such equipment or other personal property; and 1246
3. All services taxable pursuant to Section 1247
27-65-23 required to install, support, operate, repair and/or 1248
maintain the foregoing equipment and other personal property 1249
described in this subparagraph (ii). 1250
(bbb) Sales, leases or other retail transfers of 1251
fixed-wing aircraft to, or to be used by, certified common 1252
carriers in the transport of persons or property in interstate, 1253
intrastate or foreign commerce, and engines, accessories and spare 1254
parts for such fixed-wing aircraft. 1255
(2) Sales of component materials used in the construction of 1256
a building, or any addition or improvement thereon, sales of 1257
machinery and equipment to be used therein, and sales of 1258
manufacturing or processing machinery and equipment which is 1259
permanently attached to the ground or to a permanent foundation 1260
and which is not by its nature intended to be housed within a 1261
building structure, not later than three (3) months after the 1262
initial start-up date, to permanent business enterprises engaging 1263
in manufacturing or processing in Tier Two areas and Tier One 1264
areas (as such areas are designated in accordance with Section 1265
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 52 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
57-73-21), which businesses are certified by the Department of 1266
Revenue as being eligible for the exemption granted in this 1267
subsection, shall be exempt from one-half (1/2) of the taxes 1268
imposed on such transactions under this chapter. The exemption 1269
provided in this subsection (2) shall not apply to sales to any 1270
business enterprise that is a medical cannabis establishment as 1271
defined in Section 41-137-3 of the Mississippi Medical Cannabis 1272
Act. 1273
(3) Sales of component materials used in the construction of 1274
a facility, or any addition or improvement thereon, and sales or 1275
leases of machinery and equipment not later than three (3) months 1276
after the completion of construction of the facility, or any 1277
addition or improvement thereto, to be used in the building or any 1278
addition or improvement thereto, to a permanent business 1279
enterprise operating a data/information enterprise in Tier Two 1280
areas and Tier One areas (as such areas are designated in 1281
accordance with Section 57-73-21), which businesses meet minimum 1282
criteria established by the Mississippi Development Authority, 1283
shall be exempt from one-half (1/2) of the taxes imposed on such 1284
transactions under this chapter. The exemption provided in this 1285
subsection (3) shall not apply to sales to any business enterprise 1286
that is a medical cannabis establishment as defined in Section 1287
41-137-3 of the Mississippi Medical Cannabis Act. 1288
(4) Sales of component materials used in the construction of 1289
a facility, or any addition or improvement thereto, and sales of 1290
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 53 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
machinery and equipment not later than three (3) months after the 1291
completion of construction of the facility, or any addition or 1292
improvement thereto, to be used in the building or any addition or 1293
improvement thereto, to technology intensive enterprises for 1294
industrial purposes in Tier Two areas and Tier One areas (as such 1295
areas are designated in accordance with Section 57-73-21), which 1296
businesses are certified by the Department of Revenue as being 1297
eligible for the exemption granted in this subsection, shall be 1298
exempt from one-half (1/2) of the taxes imposed on such 1299
transactions under this chapter. For purposes of this subsection, 1300
an enterprise must meet the criteria provided for in Section 1301
27-65-17(1)(f) in order to be considered a technology intensive 1302
enterprise. 1303
(5) (a) For purposes of this subsection: 1304
(i) "Telecommunications enterprises" shall have 1305
the meaning ascribed to such term in Section 57-73-21; 1306
(ii) "Tier One areas" mean counties designated as 1307
Tier One areas pursuant to Section 57-73-21; 1308
(iii) "Tier Two areas" mean counties designated as 1309
Tier Two areas pursuant to Section 57-73-21; 1310
(iv) "Tier Three areas" mean counties designated 1311
as Tier Three areas pursuant to Section 57-73-21; and 1312
(v) "Equipment used in the deployment of broadband 1313
technologies" means any equipment capable of being used for or in 1314
connection with the transmission of information at a rate, prior 1315
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 54 (RKM\KP)
ST: MS Health Care Industry Zone Act; extend
repealer on act and related tax incentives.
to taking into account the effects of any signal degradation, that 1316
is not less than thirty-five (35) megabits per second downlink and 1317
three (3) megabits per second uplink for mobile broadband or that 1318
is capable of providing fixed broadband service as defined by 1319
Section 77-19-3. 1320
(b) Sales of equipment to telecommunications 1321
enterprises after June 30, 2003, and before July 1, 2030, that is 1322
installed in Tier One areas and used in the deployment of 1323
broadband technologies shall be exempt from one-half (1/2) of the 1324
taxes imposed on such transactions under this chapter. 1325
(c) Sales of equipment to telecommunications 1326
enterprises after June 30, 2003, and before July 1, 2030, that is 1327
installed in Tier Two and Tier Three areas and used in the 1328
deployment of broadband technologies shall be exempt from the 1329
taxes imposed on such transactions under this chapter. 1330
(6) Sales of component materials used in the replacement, 1331
reconstruction or repair of a building that has been destroyed or 1332
sustained extensive damage as a result of a disaster declared by 1333
the Governor, sales of machinery and equipment to be used therein 1334
to replace machinery or equipment damaged or destroyed as a result 1335
of such disaster, including, but not limited to, manufacturing or 1336
processing machinery and equipment which is permanently attached 1337
to the ground or to a permanent foundation and which is not by its 1338
nature intended to be housed within a building structure, to 1339
enterprises that were eligible for the partial exemptions provided 1340
H. B. No. 941 *HR43/R443* ~ OFFICIAL ~
26/HR43/R443
PAGE 55 (RKM\KP)

for in subsections (2), (3) and (4) of this section during initial 1341
construction of the building that was destroyed or damaged, which 1342
enterprises are certified by the Department of Revenue as being 1343
eligible for the partial exemption granted in this subsection, 1344
shall be exempt from one-half (1/2) of the taxes imposed on such 1345
transactions under this chapter. 1346
SECTION 10. This act shall take effect and be in force from 1347
and after July 1, 2026. 1348