MS Health Care Industry Zone Act; revise certification requirements and extend repealer on act and related incentives.

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Harkins

SENATE BILL NO. 2825
(As Sent to Governor)

AN ACT TO AMEND SECTION 57-117-11, MISSISSIPPI CODE OF 1972, 1
TO EXTEND THE DATE OF THE REPEALER ON THE MISSISSIPPI HEALTH CARE 2
INDUSTRY ZONE ACT; TO AMEND SECTION 57-117-5, MISSISSIPPI CODE OF 3
1972, TO REVISE THE REQUIREMENTS FOR CERTIFICATION OF AN AREA AS A 4
HEALTH CARE INDUSTRY ZONE BY THE MISSISSIPPI DEVELOPMENT 5
AUTHORITY; TO BRING FORWARD SECTIONS 57-117-1, 57-117-3, 57-117-7 6
AND 57-117-9, MISSISSIPPI CODE OF 1972, WHICH CONSTITUTE THE 7
REMAINDER OF THE MISSISSIPPI HEALTH CARE INDUSTRY ZONE ACT, FOR 8
THE PURPOSE OF POSSIBLE AMENDMENT; TO AMEND SECTION 27-65-101, 9
MISSISSIPPI CODE OF 1972, TO EXTEND THE DATE OF THE REPEALER ON 10
THE PROVISION OF LAW THAT EXEMPTS FROM SALES TAXATION SALES OF 11
MATERIALS USED IN THE CONSTRUCTION OF, OR ADDITION OR IMPROVEMENTS 12
TO, A HEALTH CARE INDUSTRY FACILITY; AND FOR RELATED PURPOSES. 13
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 14
SECTION 1. Section 57-117-11, Mississippi Code of 1972, is 15
amended as follows: 16
57-117-11. Sections 57-117-1 through 57-117-11 shall be 17
repealed from and after July 1, * * * 2028. 18
SECTION 2. Section 57-117-5, Mississippi Code of 1972, is 19
amended as follows: 20
57-117-5. (1) The MDA may certify an area as a health care 21
industry zone if the following requirements are met: 22
* * * 23
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( * * *a) The health care industry facility is located 24
within an eight-mile radius of: 25
(i) A * * * hospital with at least twenty-five 26
(25) acute-care beds; and/or 27
(ii) A university or college that is: 28
1. Accredited by the Southern Association of 29
Colleges and Schools and awards degrees and/or trains workers for 30
jobs in health care or pharmaceutical fields of study and/or work, 31
and 32
2. Located along or near Mississippi Highway 33
67 within a master planned community as defined in Section 34
19-5-10; and 35
( * * *b) The zoning of the local government unit, if 36
applicable, allows the construction or operation in the proposed 37
health care industry zone of the health care industry facility. 38
(2) A health care industry facility that engages in an 39
activity for which a certificate of need is required must comply 40
with the provisions of Section 41-7-191 in order to be certified 41
as a qualified business. 42
(3) The MDA may adopt and promulgate such rules and 43
regulations, in compliance with the Mississippi Administrative 44
Procedures Law, as are necessary for the efficient and effective 45
administration of this section in keeping with the purposes for 46
which it is enacted. 47
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SECTION 3. Section 57-117-1, Mississippi Code of 1972, is 48
brought forward as follows: 49
57-117-1. This chapter shall be known and may be cited as 50
the "Mississippi Health Care Industry Zone Act." 51
SECTION 4. Section 57-117-3, Mississippi Code of 1972, is 52
brought forward as follows: 53
57-117-3. In this chapter: 54
(a) "Health care industry facility" means: 55
(i) A business engaged in the research and 56
development of pharmaceuticals, biologics, biotechnology, 57
diagnostic imaging, medical supplies, medical equipment or 58
medicine and related manufacturing or processing, medical service 59
providers, medical product distribution, or laboratory testing 60
that creates a minimum of twenty-five (25) new full-time jobs 61
and/or Ten Million Dollars ($10,000,000.00) of capital investment 62
after July 1, 2012; or 63
(ii) A business that 1. is located on land owned 64
by or leased from an academic health science center with a medical 65
school accredited by the Liaison Committee on Medical Education 66
and a hospital accredited by the Joint Committee on Accreditation 67
of Healthcare Organizations and 2. creates a minimum of 68
twenty-five (25) new jobs and/or Twenty Million Dollars 69
($20,000,000.00) of capital investment after July 1, 2012. 70
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The term "health care industry facility" does not include any 71
medical cannabis establishment as defined in the Mississippi 72
Medical Cannabis Act. 73
(b) "MDA" means the Mississippi Development Authority. 74
(c) "Health care industry zone" means a geographical 75
area certified by the MDA as provided for in Section 57-117-5. 76
(d) "Local government unit" means any county or 77
incorporated city, town or village in the State of Mississippi. 78
(e) "Person" means a natural person, partnership, 79
limited liability company, association, corporation, business 80
trust or other business entity. 81
(f) "Qualified business" means a business or health 82
care industry facility that meets the requirements of Section 83
57-117-7 and any other requirements of this chapter. The term 84
"qualified business" does not include any medical cannabis 85
establishment as defined in the Mississippi Medical Cannabis Act. 86
SECTION 5. Section 57-117-7, Mississippi Code of 1972, is 87
brought forward as follows: 88
57-117-7. (1) Businesses and health care industry 89
facilities shall apply to the MDA for certification as a qualified 90
business. If the health care industry facility or business is 91
located in a health care industry zone and meets the requirements 92
of this chapter, the MDA shall certify it as a qualified business. 93
(2) A health care industry facility or business certified by 94
the MDA as a qualified business within a health care industry zone 95
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that constructs or renovates a health care industry facility 96
within a health care industry zone shall qualify for the 97
following: 98
(a) An accelerated state income tax depreciation 99
deduction. The accelerated depreciation deduction shall be 100
computed by accelerating depreciation period required by 101
Mississippi Administrative Code, to a ten-year depreciation 102
period. 103
(b) A sales tax exemption as authorized in Section 104
27-65-101(1)(pp). 105
(c) A fee-in-lieu of taxes as authorized in Section 106
27-31-104. 107
(d) An ad valorem tax exemption as authorized in 108
Section 27-31-101. 109
SECTION 6. Section 57-117-9, Mississippi Code of 1972, is 110
brought forward as follows: 111
57-117-9. If the qualified business has not created the 112
requisite number of jobs required by this chapter, the health care 113
industry zone certification may be revoked by MDA after five (5) 114
years have elapsed from the effective date of certification. A 115
revocation under this section shall not act retroactively to 116
remove any incentives granted by this chapter. 117
SECTION 7. Section 27-65-101, Mississippi Code of 1972, is 118
amended as follows: 119
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27-65-101. (1) The exemptions from the provisions of this 120
chapter which are of an industrial nature or which are more 121
properly classified as industrial exemptions than any other 122
exemption classification of this chapter shall be confined to 123
those persons or property exempted by this section or by the 124
provisions of the Constitution of the United States or the State 125
of Mississippi. No industrial exemption as now provided by any 126
other section except Section 57-3-33 shall be valid as against the 127
tax herein levied. Any subsequent industrial exemption from the 128
tax levied hereunder shall be provided by amendment to this 129
section. No exemption provided in this section shall apply to 130
taxes levied by Section 27-65-15 or 27-65-21. 131
The tax levied by this chapter shall not apply to the 132
following: 133
(a) Sales of boxes, crates, cartons, cans, bottles and 134
other packaging materials to manufacturers and wholesalers for use 135
as containers or shipping materials to accompany goods sold by 136
said manufacturers or wholesalers where possession thereof will 137
pass to the customer at the time of sale of the goods contained 138
therein and sales to anyone of containers or shipping materials 139
for use in ships engaged in international commerce. 140
(b) Sales of raw materials, catalysts, processing 141
chemicals, welding gases or other industrial processing gases 142
(except natural gas) to a manufacturer for use directly in 143
manufacturing or processing a product for sale or rental or 144
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repairing or reconditioning vessels or barges of fifty (50) tons 145
load displacement and over. For the purposes of this exemption, 146
electricity used directly in the electrolysis process in the 147
production of sodium chlorate shall be considered a raw material. 148
This exemption shall not apply to any property used as fuel except 149
to the extent that such fuel comprises by-products which have no 150
market value. 151
(c) The gross proceeds of sales of dry docks, offshore 152
drilling equipment for use in oil or natural gas exploration or 153
production, vessels or barges of fifty (50) tons load displacement 154
and over, when the vessels or barges are sold by the manufacturer 155
or builder thereof. In addition to other types of equipment, 156
offshore drilling equipment for use in oil or natural gas 157
exploration or production shall include aircraft used 158
predominately to transport passengers or property to or from 159
offshore oil or natural gas exploration or production platforms or 160
vessels, and engines, accessories and spare parts for such 161
aircraft. 162
(d) Sales to commercial fishermen of commercial fishing 163
boats of over five (5) tons load displacement and not more than 164
fifty (50) tons load displacement as registered with the United 165
States Coast Guard and licensed by the Mississippi Commission on 166
Marine Resources. 167
(e) The gross income from repairs to vessels and barges 168
engaged in foreign trade or interstate transportation. 169
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(f) Sales of petroleum products to vessels or barges 170
for consumption in marine international commerce or interstate 171
transportation businesses. 172
(g) Sales and rentals of rail rolling stock (and 173
component parts thereof) for ultimate use in interstate commerce 174
and gross income from services with respect to manufacturing, 175
repairing, cleaning, altering, reconditioning or improving such 176
rail rolling stock (and component parts thereof). 177
(h) Sales of raw materials, catalysts, processing 178
chemicals, welding gases or other industrial processing gases 179
(except natural gas) used or consumed directly in manufacturing, 180
repairing, cleaning, altering, reconditioning or improving such 181
rail rolling stock (and component parts thereof). This exemption 182
shall not apply to any property used as fuel. 183
(i) Sales of machinery or tools or repair parts 184
therefor or replacements thereof, fuel or supplies used directly 185
in manufacturing, converting or repairing ships, vessels or barges 186
of three thousand (3,000) tons load displacement and over, but not 187
to include office and plant supplies or other equipment not 188
directly used on the ship, vessel or barge being built, converted 189
or repaired. For purposes of this exemption, "ships, vessels or 190
barges" shall not include floating structures described in Section 191
27-65-18. 192
(j) Sales of tangible personal property to persons 193
operating ships in international commerce for use or consumption 194
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on board such ships. This exemption shall be limited to cases in 195
which procedures satisfactory to the commissioner, ensuring 196
against use in this state other than on such ships, are 197
established. 198
(k) Sales of materials used in the construction of a 199
building, or any addition or improvement thereon, and sales of any 200
machinery and equipment not later than three (3) months after the 201
completion of construction of the building, or any addition 202
thereon, to be used therein, to qualified businesses, as defined 203
in Section 57-51-5, which are located in a county or portion 204
thereof designated as an enterprise zone pursuant to Sections 205
57-51-1 through 57-51-15. 206
(l) Sales of materials used in the construction of a 207
building, or any addition or improvement thereon, and sales of any 208
machinery and equipment not later than three (3) months after the 209
completion of construction of the building, or any addition 210
thereon, to be used therein, to qualified businesses, as defined 211
in Section 57-54-5. 212
(m) Income from storage and handling of perishable 213
goods by a public storage warehouse. 214
(n) The value of natural gas lawfully injected into the 215
earth for cycling, repressuring or lifting of oil, or lawfully 216
vented or flared in connection with the production of oil; 217
however, if any gas so injected into the earth is sold for such 218
purposes, then the gas so sold shall not be exempt. 219
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(o) The gross collections from self-service commercial 220
laundering, drying, cleaning and pressing equipment. 221
(p) Sales of materials used in the construction of a 222
building, or any addition or improvement thereon, and sales of any 223
machinery and equipment not later than three (3) months after the 224
completion of construction of the building, or any addition 225
thereon, to be used therein, to qualified companies, certified as 226
such by the Mississippi Development Authority under Section 227
57-53-1. 228
(q) Sales of component materials used in the 229
construction of a building, or any addition or improvement 230
thereon, sales of machinery and equipment to be used therein, and 231
sales of manufacturing or processing machinery and equipment which 232
is permanently attached to the ground or to a permanent foundation 233
and which is not by its nature intended to be housed within a 234
building structure, not later than three (3) months after the 235
initial start-up date, to permanent business enterprises engaging 236
in manufacturing or processing in Tier Three areas (as such term 237
is defined in Section 57-73-21), which businesses are certified by 238
the Department of Revenue as being eligible for the exemption 239
granted in this paragraph (q). The exemption provided in this 240
paragraph (q) shall not apply to sales to any business enterprise 241
that is a medical cannabis establishment as defined in the 242
Mississippi Medical Cannabis Act. 243
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(r) (i) Sales of component materials used in the 244
construction of a building, or any addition or improvement 245
thereon, and sales of any machinery and equipment not later than 246
three (3) months after the completion of the building, addition or 247
improvement thereon, to be used therein, for any company 248
establishing or transferring its national or regional headquarters 249
from within or outside the State of Mississippi and creating a 250
minimum of twenty (20) jobs at the new headquarters in this state. 251
The exemption provided in this subparagraph (i) shall not apply to 252
sales for any company that is a medical cannabis establishment as 253
defined in the Mississippi Medical Cannabis Act. The Department 254
of Revenue shall establish criteria and prescribe procedures to 255
determine if a company qualifies as a national or regional 256
headquarters for the purpose of receiving the exemption provided 257
in this subparagraph (i). 258
(ii) Sales of component materials used in the 259
construction of a building, or any addition or improvement 260
thereon, and sales of any machinery and equipment not later than 261
three (3) months after the completion of the building, addition or 262
improvement thereon, to be used therein, for any company expanding 263
or making additions after January 1, 2013, to its national or 264
regional headquarters within the State of Mississippi and creating 265
a minimum of twenty (20) new jobs at the headquarters as a result 266
of the expansion or additions. The exemption provided in this 267
subparagraph (ii) shall not apply to sales for any company that is 268
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a medical cannabis establishment as defined in the Mississippi 269
Medical Cannabis Act. The Department of Revenue shall establish 270
criteria and prescribe procedures to determine if a company 271
qualifies as a national or regional headquarters for the purpose 272
of receiving the exemption provided in this subparagraph (ii). 273
(s) The gross proceeds from the sale of semitrailers, 274
trailers, boats, travel trailers, motorcycles, all-terrain cycles 275
and rotary-wing aircraft if exported from this state within 276
forty-eight (48) hours and registered and first used in another 277
state. 278
(t) Gross income from the storage and handling of 279
natural gas in underground salt domes and in other underground 280
reservoirs, caverns, structures and formations suitable for such 281
storage. 282
(u) Sales of machinery and equipment to nonprofit 283
organizations if the organization: 284
(i) Is tax exempt pursuant to Section 501(c)(4) of 285
the Internal Revenue Code of 1986, as amended; 286
(ii) Assists in the implementation of the 287
contingency plan or area contingency plan, and which is created in 288
response to the requirements of Title IV, Subtitle B of the Oil 289
Pollution Act of 1990, Public Law 101-380; and 290
(iii) Engages primarily in programs to contain, 291
clean up and otherwise mitigate spills of oil or other substances 292
occurring in the United States coastal and tidal waters. 293
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For purposes of this exemption, "machinery and equipment" 294
means any ocean-going vessels, barges, booms, skimmers and other 295
capital equipment used primarily in the operations of nonprofit 296
organizations referred to herein. 297
(v) Sales or leases of materials and equipment to 298
approved business enterprises as provided under the Growth and 299
Prosperity Act. 300
(w) From and after July 1, 2001, sales of pollution 301
control equipment to manufacturers or custom processors for 302
industrial use. For the purposes of this exemption, "pollution 303
control equipment" means equipment, devices, machinery or systems 304
used or acquired to prevent, control, monitor or reduce air, water 305
or groundwater pollution, or solid or hazardous waste as required 306
by federal or state law or regulation. 307
(x) Sales or leases to a manufacturer of motor vehicles 308
or powertrain components operating a project that has been 309
certified by the Mississippi Major Economic Impact Authority as a 310
project as defined in Section 57-75-5(f)(iv)1, Section 311
57-75-5(f)(xxi) or Section 57-75-5(f)(xxii) of machinery and 312
equipment; special tooling such as dies, molds, jigs and similar 313
items treated as special tooling for federal income tax purposes; 314
or repair parts therefor or replacements thereof; repair services 315
thereon; fuel, supplies, electricity, coal and natural gas used 316
directly in the manufacture of motor vehicles or motor vehicle 317
parts or used to provide climate control for manufacturing areas. 318
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(y) Sales or leases of component materials, machinery 319
and equipment used in the construction of a building, or any 320
addition or improvement thereon to an enterprise operating a 321
project that has been certified by the Mississippi Major Economic 322
Impact Authority as a project as defined in Section 323
57-75-5(f)(iv)1, Section 57-75-5(f)(xxi), Section 57-75-5(f)(xxii) 324
or Section 57-75-5(f)(xxviii) and any other sales or leases 325
required to establish or operate such project. 326
(z) Sales of component materials and equipment to a 327
business enterprise as provided under Section 57-64-33. 328
(aa) The gross income from the stripping and painting 329
of commercial aircraft engaged in foreign or interstate 330
transportation business. 331
(bb) [Repealed] 332
(cc) Sales or leases to an enterprise owning or 333
operating a project that has been designated by the Mississippi 334
Major Economic Impact Authority as a project as defined in Section 335
57-75-5(f)(xviii) of machinery and equipment; special tooling such 336
as dies, molds, jigs and similar items treated as special tooling 337
for federal income tax purposes; or repair parts therefor or 338
replacements thereof; repair services thereon; fuel, supplies, 339
electricity, coal and natural gas used directly in the 340
manufacturing/production operations of the project or used to 341
provide climate control for manufacturing/production areas. 342
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(dd) Sales or leases of component materials, machinery 343
and equipment used in the construction of a building, or any 344
addition or improvement thereon to an enterprise owning or 345
operating a project that has been designated by the Mississippi 346
Major Economic Impact Authority as a project as defined in Section 347
57-75-5(f)(xviii) and any other sales or leases required to 348
establish or operate such project. 349
(ee) Sales of parts used in the repair and servicing of 350
aircraft not registered in Mississippi engaged exclusively in the 351
business of foreign or interstate transportation to businesses 352
engaged in aircraft repair and maintenance. 353
(ff) Sales of component materials used in the 354
construction of a facility, or any addition or improvement 355
thereon, and sales or leases of machinery and equipment not later 356
than three (3) months after the completion of construction of the 357
facility, or any addition or improvement thereto, to be used in 358
the building or any addition or improvement thereto, to a 359
permanent business enterprise operating a data/information 360
enterprise in Tier Three areas (as such areas are designated in 361
accordance with Section 57-73-21), meeting minimum criteria 362
established by the Mississippi Development Authority. The 363
exemption provided in this paragraph (ff) shall not apply to sales 364
to any business enterprise that is a medical cannabis 365
establishment as defined in the Mississippi Medical Cannabis Act. 366
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(gg) Sales of component materials used in the 367
construction of a facility, or any addition or improvement 368
thereto, and sales of machinery and equipment not later than three 369
(3) months after the completion of construction of the facility, 370
or any addition or improvement thereto, to be used in the facility 371
or any addition or improvement thereto, to technology intensive 372
enterprises for industrial purposes in Tier Three areas (as such 373
areas are designated in accordance with Section 57-73-21), as 374
certified by the Department of Revenue. For purposes of this 375
paragraph, an enterprise must meet the criteria provided for in 376
Section 27-65-17(1)(f) in order to be considered a technology 377
intensive enterprise. 378
(hh) Sales of component materials used in the 379
replacement, reconstruction or repair of a building or facility 380
that has been destroyed or sustained extensive damage as a result 381
of a disaster declared by the Governor, sales of machinery and 382
equipment to be used therein to replace machinery or equipment 383
damaged or destroyed as a result of such disaster, including, but 384
not limited to, manufacturing or processing machinery and 385
equipment which is permanently attached to the ground or to a 386
permanent foundation and which is not by its nature intended to be 387
housed within a building structure, to enterprises or companies 388
that were eligible for the exemptions authorized in paragraph (q), 389
(r), (ff) or (gg) of this subsection during initial construction 390
of the building that was destroyed or damaged, which enterprises 391
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or companies are certified by the Department of Revenue as being 392
eligible for the exemption granted in this paragraph. 393
(ii) Sales of software or software services transmitted 394
by the Internet to a destination outside the State of Mississippi 395
where the first use of such software or software services by the 396
purchaser occurs outside the State of Mississippi. 397
(jj) Gross income of public storage warehouses derived 398
from the temporary storage of raw materials that are to be used in 399
an eligible facility as defined in Section 27-7-22.35. 400
(kk) Sales of component building materials and 401
equipment for initial construction of facilities or expansion of 402
facilities as authorized under Sections 57-113-1 through 57-113-7 403
and Sections 57-113-21 through 57-113-27. 404
(ll) Sales and leases of machinery and equipment 405
acquired in the initial construction to establish facilities as 406
authorized in Sections 57-113-1 through 57-113-7. 407
(mm) Sales and leases of replacement hardware, software 408
or other necessary technology to operate a data center as 409
authorized under Sections 57-113-21 through 57-113-27. 410
(nn) Sales of component materials used in the 411
construction of a building, or any addition or improvement 412
thereon, and sales or leases of machinery and equipment not later 413
than three (3) months after the completion of the construction of 414
the facility, to be used in the facility, to permanent business 415
enterprises operating a facility producing renewable crude oil 416
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from biomass harvested or produced, in whole or in part, in 417
Mississippi, which businesses meet minimum criteria established by 418
the Mississippi Development Authority. As used in this paragraph, 419
the term "biomass" shall have the meaning ascribed to such term in 420
Section 57-113-1. 421
(oo) Sales of supplies, equipment and other personal 422
property to an organization that is exempt from taxation under 423
Section 501(c)(3) of the Internal Revenue Code and is the host 424
organization coordinating a professional golf tournament played or 425
to be played in this state and the supplies, equipment or other 426
personal property will be used for purposes related to the golf 427
tournament and related activities. 428
(pp) Sales of materials used in the construction of a 429
health care industry facility, as defined in Section 57-117-3, or 430
any addition or improvement thereon, and sales of any machinery 431
and equipment not later than three (3) months after the completion 432
of construction of the facility, or any addition thereon, to be 433
used therein, to qualified businesses, as defined in Section 434
57-117-3. This paragraph shall be repealed from and after July 435
1, * * * 2028. 436
(qq) Sales or leases to a manufacturer of automotive 437
parts operating a project that has been certified by the 438
Mississippi Major Economic Impact Authority as a project as 439
defined in Section 57-75-5(f)(xxviii) of machinery and equipment; 440
or repair parts therefor or replacements thereof; repair services 441
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thereon; fuel, supplies, electricity, coal, nitrogen and natural 442
gas used directly in the manufacture of automotive parts or used 443
to provide climate control for manufacturing areas. 444
(rr) Gross collections derived from guided tours on any 445
navigable waters of this state, which include providing 446
accommodations, guide services and/or related equipment operated 447
by or under the direction of the person providing the tour, for 448
the purposes of outdoor tourism. The exemption provided in this 449
paragraph (rr) does not apply to the sale of tangible personal 450
property by a person providing such tours. 451
(ss) Retail sales of truck-tractors and semitrailers 452
used in interstate commerce and registered under the International 453
Registration Plan (IRP) or any similar reciprocity agreement or 454
compact relating to the proportional registration of commercial 455
vehicles entered into as provided for in Section 27-19-143. 456
(tt) Sales exempt under the Facilitating Business Rapid 457
Response to State Declared Disasters Act of 2015 (Sections 458
27-113-1 through 27-113-9). 459
(uu) Sales or leases to an enterprise and its 460
affiliates operating a project that has been certified by the 461
Mississippi Major Economic Impact Authority as a project as 462
defined in Section 57-75-5(f)(xxix) of: 463
(i) All personal property and fixtures, including 464
without limitation, sales or leases to the enterprise and its 465
affiliates of: 466
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1. Manufacturing machinery and equipment; 467
2. Special tooling such as dies, molds, jigs 468
and similar items treated as special tooling for federal income 469
tax purposes; 470
3. Component building materials, machinery 471
and equipment used in the construction of buildings, and any other 472
additions or improvements to the project site for the project; 473
4. Nonmanufacturing furniture, fixtures and 474
equipment (inclusive of all communications, computer, server, 475
software and other hardware equipment); and 476
5. Fuel, supplies (other than 477
nonmanufacturing consumable supplies and water), electricity, 478
nitrogen gas and natural gas used directly in the 479
manufacturing/production operations of such project or used to 480
provide climate control for manufacturing/production areas of such 481
project; 482
(ii) All replacements of, repair parts for or 483
services to repair items described in subparagraph (i)1, 2 and 3 484
of this paragraph; and 485
(iii) All services taxable pursuant to Section 486
27-65-23 required to establish, support, operate, repair and/or 487
maintain such project. 488
(vv) Sales or leases to an enterprise operating a 489
project that has been certified by the Mississippi Major Economic 490
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Impact Authority as a project as defined in Section 491
57-75-5(f)(xxx) of: 492
(i) Purchases required to establish and operate 493
the project, including, but not limited to, sales of component 494
building materials, machinery and equipment required to establish 495
the project facility and any additions or improvements thereon; 496
and 497
(ii) Machinery, special tools (such as dies, 498
molds, and jigs) or repair parts thereof, or replacements and 499
lease thereof, repair services thereon, fuel, supplies and 500
electricity, coal and natural gas used in the manufacturing 501
process and purchased by the enterprise owning or operating the 502
project for the benefit of the project. 503
(ww) Sales of component materials used in the 504
construction of a building, or any expansion or improvement 505
thereon, sales of machinery and/or equipment to be used therein, 506
and sales of processing machinery and equipment which is 507
permanently attached to the ground or to a permanent foundation 508
which is not by its nature intended to be housed in a building 509
structure, no later than three (3) months after initial startup, 510
expansion or improvement of a permanent enterprise solely engaged 511
in the conversion of natural sand into proppants used in oil and 512
gas exploration and development with at least ninety-five percent 513
(95%) of such proppants used in the production of oil and/or gas 514
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from horizontally drilled wells and/or horizontally drilled 515
recompletion wells as defined in Sections 27-25-501 and 27-25-701. 516
(xx) (i) Sales or leases to an enterprise operating a 517
project that has been certified by the Mississippi Major Economic 518
Impact Authority as a project as defined in Section 519
57-75-5(f)(xxxi), for a period ending no later than one (1) year 520
following completion of the construction of the facility or 521
facilities comprising such project of all personal property and 522
fixtures, including without limitation, sales or leases to the 523
enterprise and its affiliates of: 524
1. Manufacturing machinery and equipment; 525
2. Special tooling such as dies, molds, jigs 526
and similar items treated as special tooling for federal income 527
tax purposes; 528
3. Component building materials, machinery 529
and equipment used in the construction of buildings, and any other 530
additions or improvements to the project site for the project; 531
4. Nonmanufacturing furniture, fixtures and 532
equipment (inclusive of all communications, computer, server, 533
software and other hardware equipment); 534
5. Replacements of, repair parts for or 535
services to repair items described in this subparagraph (i)1, 2 536
and 3; and 537
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6. All services taxable pursuant to Section 538
27-65-23 required to establish, support, operate, repair and/or 539
maintain such project; and 540
(ii) Sales or leases to an enterprise operating a 541
project that has been certified by the Mississippi Major Economic 542
Impact Authority as a project as defined in Section 543
57-75-5(f)(xxxi) of electricity, current, power, steam, coal, 544
natural gas, liquefied petroleum gas or other fuel, biomass, 545
nitrogen or other atmospheric or other industrial gases used 546
directly by the enterprise in the manufacturing/production 547
operations of its project or used to provide climate control for 548
manufacturing/production areas (which manufacturing/production 549
areas shall be apportioned based on square footage). As used in 550
this paragraph, the term "biomass" shall have the meaning ascribed 551
to such term in Section 57-113-1. 552
(yy) The gross proceeds from the sale of any item of 553
tangible personal property by the manufacturer or custom processor 554
thereof if such item is shipped, transported or exported from this 555
state and first used in another state, whether such shipment, 556
transportation or exportation is made by the seller, purchaser, or 557
any third party acting on behalf of such party. For the purposes 558
of this paragraph (yy), any instruction to, training of or 559
inspection by the purchaser with respect to the item prior to 560
shipment, transportation or exportation of the item shall not 561
constitute a first use of such item within this state. 562
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(zz) (i) Sales or leases to an enterprise operating a 563
project that has been certified by the Mississippi Major Economic 564
Impact Authority as a project as defined in Section 565
57-75-5(f)(xxxii), for a period ending no later than one (1) year 566
following completion of the construction of the facility or 567
facilities comprising such project of all personal property and 568
fixtures, including, without limitation, sales or leases to the 569
enterprise and its affiliates of: 570
1. Manufacturing machinery and equipment; 571
2. Special tooling such as dies, molds, jigs 572
and similar items treated as special tooling for federal income 573
tax purposes; 574
3. Component building materials, machinery 575
and equipment used in the construction of buildings, and any other 576
additions or improvements to the project site for the project; 577
4. Nonmanufacturing furniture, fixtures and 578
equipment (inclusive of all communications, computer, server, 579
software and other hardware equipment); 580
5. Replacements of, repair parts for or 581
services to repair items described in this subparagraph (i)1, 2 582
and 3; and 583
6. All services taxable pursuant to Section 584
27-65-23 required to establish, support, operate, repair and/or 585
maintain such project; and 586
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(ii) Sales or leases to an enterprise operating a 587
project that has been certified by the Mississippi Major Economic 588
Impact Authority as a project as defined in Section 589
57-75-5(f)(xxxii) of electricity, current, power, steam, coal, 590
natural gas, liquefied petroleum gas or other fuel, biomass, 591
nitrogen or other atmospheric or other industrial gases used 592
directly by the enterprise in the manufacturing/production 593
operations of its project or used to provide climate control for 594
manufacturing/production areas (which manufacturing/production 595
areas shall be apportioned based on square footage). As used in 596
this paragraph, the term "biomass" shall have the meaning ascribed 597
to such term in Section 57-113-1. 598
(aaa) Sales or leases to an enterprise and/or any 599
affiliates thereof operating a project that has been certified by 600
the Mississippi Major Economic Impact Authority as a project as 601
defined in Section 57-75-5(f)(xxxiii) of: 602
(i) Component building materials, fixtures, 603
machinery and equipment used in the construction of a data 604
processing facility or other buildings comprising all or part of a 605
project, for a period ending no later than one (1) year following 606
completion of the construction of the data processing facility or 607
such other building; and 608
(ii) All equipment and other personal property 609
needed to establish and operate the project and any expansions 610
thereof or additions thereto, including, but not limited to: 611
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1. Communications, computer, server, 612
software, connectivity materials and equipment, emergency power 613
generation equipment, other hardware equipment and any other 614
technology; 615
2. All replacements of, and repair parts for, 616
such equipment or other personal property; and 617
3. All services taxable pursuant to Section 618
27-65-23 required to install, support, operate, repair and/or 619
maintain the foregoing equipment and other personal property 620
described in this subparagraph (ii). 621
( * * *aab) Sales, leases or other retail transfers of 622
fixed-wing aircraft to, or to be used by, certified common 623
carriers in the transport of persons or property in interstate, 624
intrastate or foreign commerce, and engines, accessories and spare 625
parts for such fixed-wing aircraft. 626
(2) Sales of component materials used in the construction of 627
a building, or any addition or improvement thereon, sales of 628
machinery and equipment to be used therein, and sales of 629
manufacturing or processing machinery and equipment which is 630
permanently attached to the ground or to a permanent foundation 631
and which is not by its nature intended to be housed within a 632
building structure, not later than three (3) months after the 633
initial start-up date, to permanent business enterprises engaging 634
in manufacturing or processing in Tier Two areas and Tier One 635
areas (as such areas are designated in accordance with Section 636
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57-73-21), which businesses are certified by the Department of 637
Revenue as being eligible for the exemption granted in this 638
subsection, shall be exempt from one-half (1/2) of the taxes 639
imposed on such transactions under this chapter. The exemption 640
provided in this subsection (2) shall not apply to sales to any 641
business enterprise that is a medical cannabis establishment as 642
defined in the Mississippi Medical Cannabis Act. 643
(3) Sales of component materials used in the construction of 644
a facility, or any addition or improvement thereon, and sales or 645
leases of machinery and equipment not later than three (3) months 646
after the completion of construction of the facility, or any 647
addition or improvement thereto, to be used in the building or any 648
addition or improvement thereto, to a permanent business 649
enterprise operating a data/information enterprise in Tier Two 650
areas and Tier One areas (as such areas are designated in 651
accordance with Section 57-73-21), which businesses meet minimum 652
criteria established by the Mississippi Development Authority, 653
shall be exempt from one-half (1/2) of the taxes imposed on such 654
transactions under this chapter. The exemption provided in this 655
subsection (3) shall not apply to sales to any business enterprise 656
that is a medical cannabis establishment as defined in the 657
Mississippi Medical Cannabis Act. 658
(4) Sales of component materials used in the construction of 659
a facility, or any addition or improvement thereto, and sales of 660
machinery and equipment not later than three (3) months after the 661
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completion of construction of the facility, or any addition or 662
improvement thereto, to be used in the building or any addition or 663
improvement thereto, to technology intensive enterprises for 664
industrial purposes in Tier Two areas and Tier One areas (as such 665
areas are designated in accordance with Section 57-73-21), which 666
businesses are certified by the Department of Revenue as being 667
eligible for the exemption granted in this subsection, shall be 668
exempt from one-half (1/2) of the taxes imposed on such 669
transactions under this chapter. For purposes of this subsection, 670
an enterprise must meet the criteria provided for in Section 671
27-65-17(1)(f) in order to be considered a technology intensive 672
enterprise. 673
(5) (a) For purposes of this subsection: 674
(i) "Telecommunications enterprises" shall have 675
the meaning ascribed to such term in Section 57-73-21; 676
(ii) "Tier One areas" mean counties designated as 677
Tier One areas pursuant to Section 57-73-21; 678
(iii) "Tier Two areas" mean counties designated as 679
Tier Two areas pursuant to Section 57-73-21; 680
(iv) "Tier Three areas" mean counties designated 681
as Tier Three areas pursuant to Section 57-73-21; and 682
(v) "Equipment used in the deployment of broadband 683
technologies" means any equipment capable of being used for or in 684
connection with the transmission of information at a rate, prior 685
to taking into account the effects of any signal degradation, that 686
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is not less than thirty-five (35) megabits per second downlink and 687
three (3) megabits per second uplink for mobile broadband or that 688
is capable of providing fixed broadband service as defined by 689
Section 77-19-3. 690
(b) Sales of equipment to telecommunications 691
enterprises after June 30, 2003, and before July 1, 2030, that is 692
installed in Tier One areas and used in the deployment of 693
broadband technologies shall be exempt from one-half (1/2) of the 694
taxes imposed on such transactions under this chapter. 695
(c) Sales of equipment to telecommunications 696
enterprises after June 30, 2003, and before July 1, 2030, that is 697
installed in Tier Two and Tier Three areas and used in the 698
deployment of broadband technologies shall be exempt from the 699
taxes imposed on such transactions under this chapter. 700
(6) Sales of component materials used in the replacement, 701
reconstruction or repair of a building that has been destroyed or 702
sustained extensive damage as a result of a disaster declared by 703
the Governor, sales of machinery and equipment to be used therein 704
to replace machinery or equipment damaged or destroyed as a result 705
of such disaster, including, but not limited to, manufacturing or 706
processing machinery and equipment which is permanently attached 707
to the ground or to a permanent foundation and which is not by its 708
nature intended to be housed within a building structure, to 709
enterprises that were eligible for the partial exemptions provided 710
for in subsections (2), (3) and (4) of this section during initial 711
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ST: MS Health Care Industry Zone Act; revise
certification requirements and extend repealer
on act and related incentives.
construction of the building that was destroyed or damaged, which 712
enterprises are certified by the Department of Revenue as being 713
eligible for the partial exemption granted in this subsection, 714
shall be exempt from one-half (1/2) of the taxes imposed on such 715
transactions under this chapter. 716
SECTION 8. This act shall take effect and be in force from 717
and after July 1, 2026. 718