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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Senator(s) Harkins
SENATE BILL NO. 2849
AN ACT TO AMEND SECTION 37-148-11, MISSISSIPPI CODE OF 1972, 1
TO EXTEND THE REPEALER ON THE STRENGTHENING MISSISSIPPI ACADEMIC 2
RESEARCH THROUGH (SMART) BUSINESS ACT; TO BRING FORWARD SECTIONS 3
37-148-1, 37-148-3, 37-148-5, 37-148-7 AND 37-148-9, MISSISSIPPI 4
CODE OF 1972, WHICH CONSTITUTE THE SMART BUSINESS ACT, FOR THE 5
PURPOSE OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 7
SECTION 1. Section 37-148-11, Mississippi Code of 1972, is 8
amended as follows: 9
37-148-11. Sections 37-148-1, 37-148-3, 37-148-5, 37-148-7, 10
37-148-9 and 37-148-11, which constitute the Strengthening 11
Mississippi Academic Research Through Business Act, shall stand 12
repealed on July 1, * * * 2028. 13
SECTION 2. Section 37-148-1, Mississippi Code of 1972, is 14
brought forward as follows: 15
37-148-1. This chapter shall be known and may be cited as 16
the "Strengthening Mississippi Academic Research Through Business 17
Act." 18
SECTION 3. Section 37-148-3, Mississippi Code of 1972, is 19
brought forward as follows: 20
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37-148-3. As used in this chapter, the following words and 21
phrases have the meanings ascribed in this section unless the 22
context clearly indicates otherwise: 23
(a) "College" means the state institutions of higher 24
learning in Mississippi which are accredited by the Southern 25
Association of Colleges and Schools. 26
(b) "Investor" means a natural person, partnership, 27
limited liability company, association, corporation, business 28
trust or other business entity, not formed for the specific 29
purpose of acquiring the rebate offered, which is subject to 30
Mississippi income tax. The term "investor" does not include any 31
medical cannabis establishment as defined in the Mississippi 32
Medical Cannabis Act. 33
(c) "Qualified research" means the systematic 34
investigative process that is undertaken for the purpose of 35
discovering information. The term "qualified research" does not 36
include research conducted outside the State of Mississippi or 37
research expenses that are already being funded by any grant, 38
contract or otherwise by another person or governmental entity. 39
(d) "Research agreement" means a written contract, 40
grant or cooperative agreement entered into between a person and a 41
college or research corporation for the performance of qualified 42
research. All qualified research costs generating a SMART 43
Business Rebate must be spent by the college or research 44
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corporation on qualified research undertaken according to a 45
research agreement. 46
(e) "Research corporation" means any research 47
corporation formed under Section 37-147-15 if the corporation is 48
wholly owned by or affiliated with a college and all income and 49
profits of the corporation inure to the benefit of the college. 50
(f) "Qualified research costs" means costs paid or 51
incurred by an investor to a college or research corporation for 52
qualified research undertaken according to a research agreement. 53
(g) "State" means the State of Mississippi or a 54
governmental entity of the State of Mississippi. 55
(h) "IHL" means the Board of Trustees of State 56
Institutions of Higher Learning in Mississippi. 57
(i) "SMART Business" means Strengthening Mississippi 58
Academic Research Through Business. 59
(j) "Applicant" means a college or research corporation 60
applying for SMART Business Accelerate Initiative funds to develop 61
state-owned intellectual property into products and services. 62
(k) "Qualified validation expense" includes, but is not 63
limited to, services that accelerate the development of early 64
product concepts, conducting proof-of-concept studies, and 65
manufacturing prototypes to perform research validation. 66
Qualified validation expense does not include salaries or wages 67
associated with a licensee of state-owned intellectual property, 68
legal fees or any payment in conflict with state law. 69
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(l) "Research validation" means research intended to 70
validate the commercial viability of state-owned intellectual 71
property. 72
(m) "Disbursement" means a grant of funds to support 73
research validation. 74
SECTION 4. Section 37-148-5, Mississippi Code of 1972, is 75
brought forward as follows: 76
37-148-5. (1) The SMART Business Act shall include the 77
SMART Business Rebate to promote research partnerships between 78
colleges and investors and the SMART Business Accelerate 79
Initiative to promote the development of state-owned intellectual 80
property. 81
(2) The SMART Business Rebate shall be implemented as 82
follows: 83
(a) Subject to the provisions of this chapter, an 84
investor incurring qualified research costs subject to a research 85
agreement is eligible for a rebate equal to twenty-five percent 86
(25%) of the investor's qualified research costs. 87
(b) An investor incurring research costs may not claim 88
a rebate pursuant to this chapter greater than One Million Dollars 89
($1,000,000.00) in any fiscal year. 90
(c) The total amount of rebates issued under the SMART 91
Business Rebate by the state in any fiscal year may not exceed 92
Three Million Five Hundred Thousand Dollars ($3,500,000.00). 93
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(d) Investors desiring to apply for the SMART Business 94
rebate authorized by this chapter shall submit an application to 95
IHL which must contain, at a minimum, the following: 96
(i) A description of the qualified research to be 97
conducted by the college or research corporation; 98
(ii) A proposed budget; 99
(iii) An estimated date for completion of the 100
qualified research; and 101
(iv) Such additional information as may be 102
requested by IHL. 103
(e) IHL shall review each application to determine if 104
the investor has satisfied all of the requirements of this 105
section. 106
(f) Within sixty (60) days of receiving an application, 107
IHL shall issue or refuse to issue a SMART Business Rebate 108
certificate. The SMART Business Rebate certificate must include 109
the amount of the rebate the investor is eligible to claim, 110
subject to subsection (1) of this section. IHL must notify the 111
Department of Revenue when a SMART Business Rebate certificate is 112
issued. 113
(g) To claim a rebate, the investor must submit a 114
rebate allocation claim to the Department of Revenue. The rebate 115
allocation claim must include, at a minimum, the SMART Business 116
Rebate certificate issued by IHL and proof of payment to the 117
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college or research corporation for qualified research conducted 118
according to the research agreement. 119
(h) The Department of Revenue may request an audit from 120
the investor submitting a rebate allocation claim, at the 121
investor's expense, to verify the investor has satisfied the 122
requirements of this chapter. 123
(i) The Department of Revenue shall issue rebates 124
available under this subsection from current income tax 125
collections. 126
(j) Rebates must be allocated to investors by the 127
Department of Revenue in the order that SMART Business Rebate 128
certificates are issued by IHL. 129
(3) The SMART Business Accelerate Initiative shall be 130
implemented as follows: 131
(a) Subject to the provisions of this chapter, an 132
applicant performing research validation pursuant to a research 133
agreement is eligible for a disbursement of up to One Hundred 134
Fifty Thousand Dollars ($150,000.00) for the applicant's qualified 135
validation expenses. 136
(b) The total amount of disbursements issued by the 137
state under the SMART Business Accelerate Initiative in any fiscal 138
year may not exceed One Million Five Hundred Thousand Dollars 139
($1,500,000.00). 140
(c) Applicants desiring to apply for a SMART Business 141
Accelerate Initiative disbursement authorized by this chapter 142
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shall submit an application to IHL which must contain, at a 143
minimum, the following: 144
(i) A description of the research validation to be 145
conducted by the college or research corporation using funds from 146
the disbursement; 147
(ii) A proposed budget of qualified validation 148
expenses; 149
(iii) A certified determination from the applicant 150
that the proposed research validation is necessary to develop 151
state-owned intellectual property into products and services; and 152
(iv) Such additional information as may be 153
requested by IHL. 154
(d) IHL shall review each application to determine if 155
the applicant has satisfied all of the requirements of this 156
section. 157
(e) Within sixty (60) days of receiving an application, 158
IHL shall issue or refuse to issue a SMART Business Accelerate 159
Initiative disbursement certificate. The SMART Business 160
Accelerate Initiative disbursement certificate must include the 161
amount of the disbursement the applicant is eligible to receive, 162
subject to paragraphs (a) and (b) of this subsection. IHL must 163
notify the Department of Revenue when a SMART Business Accelerate 164
Initiative disbursement certificate is issued. 165
(f) IHL shall develop a process for accepting, 166
reviewing and selecting proposals for SMART Business Accelerate 167
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Initiative disbursements and notifying the Department of Revenue 168
when applicants have been selected to receive disbursements. 169
(g) The Department of Revenue shall issue disbursements 170
available under this subsection from current income tax 171
collections. 172
SECTION 5. Section 37-148-7, Mississippi Code of 1972, is 173
brought forward as follows: 174
37-148-7. IHL and the Department of Revenue each may 175
promulgate, in accordance with the Mississippi Administrative 176
Procedures Law, rules and regulations, application forms and any 177
other forms necessary for the implementation and administration of 178
this chapter. 179
SECTION 6. Section 37-148-9, Mississippi Code of 1972, is 180
brought forward as follows: 181
37-148-9. Before December 1 of each year, IHL shall file a 182
report with the Governor, Secretary of the Senate and Clerk of the 183
House of Representatives on the implementation of the 184
Strengthening Mississippi Academic Research Through Business Act. 185
For each research agreement where an investor was issued a SMART 186
Business certificate during that year, the report must include, 187
but not necessarily be limited to, the name of the investor and 188
the rebate amount the investor was eligible to claim. For each 189
SMART Business Accelerate Initiative disbursement certificate 190
issued during that year, the report must include, but not 191
necessarily be limited to, the name of the applicant, a 192
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ST: Strengthening Mississippi Academic Research
Through (SMART) Business Act; extend repealer
on.
description of the research validation and the amount of the 193
disbursement. 194
SECTION 7. This act shall take effect and be in force from 195
and after July 1, 2026. 196