Mississippi Advantage Jobs Act; expand conditions for certain qualified businesses or industries receiving incentive payments.

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Harkins, DuPree

COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 2850

AN ACT TO AMEND SECTION 57-62-9, MISSISSIPPI CODE OF 1972, TO 1
ALLOW CERTAIN QUALIFIED BUSINESSES OR INDUSTRIES TO RECEIVE 2
INCENTIVE PAYMENTS UNDER THE MISSISSIPPI ADVANTAGE JOBS ACT FOR 10 3
YEARS UNDER CERTAIN CONDITIONS; TO BRING FORWARD SECTIONS 4
57-62-13, 57-114-5, 57-114-7 AND 57-114-9, MISSISSIPPI CODE OF 5
1972, FOR THE PURPOSE OF POSSIBLE AMENDMENT; AND FOR RELATED 6
PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. Section 57-62-9, Mississippi Code of 1972, is 9
amended as follows: 10
[For businesses or industries that received or applied for 11
incentive payments prior to July 1, 2005, this section shall read 12
as follows:] 13
57-62-9. (1) Except as otherwise provided in this section, 14
a qualified business or industry that meets the qualifications 15
specified in this chapter may receive quarterly incentive payments 16
for a period not to exceed ten (10) years from the Department of 17
Revenue pursuant to the provisions of this chapter in an amount 18
which shall be equal to the net benefit rate multiplied by the 19
actual gross payroll of new direct jobs for a calendar quarter as 20
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verified by the Mississippi Department of Employment Security, but 21
not to exceed the amount of money previously paid into the fund by 22
the employer. A qualified business or industry that is a project 23
as defined in Section 57-75-5(f)(iv)1 may elect the date upon 24
which the ten-year period will begin. Such date may not be later 25
than sixty (60) months after the date the business or industry 26
applied for incentive payments. 27
(2) (a) A qualified business or industry that is a project 28
as defined in Section 57-75-5(f)(iv)1 may apply to the MDA to 29
receive incentive payments for an additional period not to exceed 30
five (5) years beyond the expiration date of the initial ten-year 31
period if: 32
(i) The qualified business or industry creates at 33
least three thousand (3,000) new direct jobs within five (5) years 34
after the date the business or industry commences commercial 35
production; 36
(ii) Within five (5) years after the date the 37
business or industry commences commercial production, the average 38
annual wage of the jobs is at least one hundred fifty percent 39
(150%) of the most recently published state average annual wage or 40
the most recently published average annual wage of the county in 41
which the qualified business or industry is located as determined 42
by the Mississippi Department of Employment Security, whichever is 43
the lesser. The criteria for the average annual wage requirement 44
shall be based upon the state average annual wage or the average 45
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annual wage of the county whichever is appropriate, at the time of 46
creation of the minimum number of jobs, and the threshold 47
established at that time will remain constant for the duration of 48
the additional period; and 49
(iii) The qualified business or industry meets and 50
maintains the job and wage requirements of subparagraphs (i) and 51
(ii) of this paragraph (a) for four (4) consecutive calendar 52
quarters. 53
(b) A qualified business or industry that is a project 54
as defined in Section 57-75-5(f)(iv)1 and qualified to receive 55
incentive payments for the additional period provided in paragraph 56
(a) of this subsection (2) may apply to the MDA to receive 57
incentive payments for an additional period not to exceed ten (10) 58
years beyond the expiration date of the additional period provided 59
in paragraph (a) of this subsection (2) if: 60
(i) The qualified business or industry creates at 61
least four thousand (4,000) new direct jobs after qualifying for 62
the additional incentive period provided in paragraph (a) of this 63
subsection (2) but before the expiration of the additional period. 64
For purposes of determining whether the business or industry meets 65
the minimum jobs requirement of this subparagraph (i), the number 66
of jobs the business or industry created in order to meet the 67
minimum jobs requirement of paragraph (a) of this subsection (2) 68
shall be subtracted from the minimum jobs requirement of this 69
subparagraph (i); 70
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(ii) The average annual wage of the jobs is at 71
least one hundred fifty percent (150%) of the most recently 72
published state average annual wage or the most recently published 73
average annual wage of the county in which the qualified business 74
or industry is located as determined by the Mississippi Department 75
of Employment Security, whichever is the lesser. The criteria for 76
the average annual wage requirement shall be based upon the state 77
average annual wage or the average annual wage of the county 78
whichever is appropriate, at the time of creation of the minimum 79
number of jobs, and the threshold established at that time will 80
remain constant for the duration of the additional period; and 81
(iii) The qualified business or industry meets and 82
maintains the job and wage requirements of subparagraphs (i) and 83
(ii) of this paragraph (b) for four (4) consecutive calendar 84
quarters. 85
(3) In order to receive incentive payments, an establishment 86
shall apply to the MDA. The application shall be on a form 87
prescribed by the MDA and shall contain such information as may be 88
required by the MDA to determine if the applicant is qualified. 89
(4) In order to qualify to receive such payments, the 90
establishment applying shall be required to: 91
(a) Be engaged in a qualified business or industry; 92
(b) Provide an average salary, excluding benefits which 93
are not subject to Mississippi income taxes, of at least one 94
hundred twenty-five percent (125%) of the most recently published 95
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state average annual wage or the most recently published average 96
annual wage of the county in which the qualified business or 97
industry is located as determined by the Mississippi Department of 98
Employment Security, whichever is the lesser. The criteria for 99
this requirement shall be based upon the state average annual wage 100
or the average annual wage of the county whichever is appropriate, 101
at the time of application, and the threshold established upon 102
application will remain constant for the duration of the project; 103
(c) The business or industry must create and maintain a 104
minimum of ten (10) full-time jobs in counties that have an 105
average unemployment rate over the previous twelve-month period 106
which is at least one hundred fifty percent (150%) of the most 107
recently published state unemployment rate, as determined by the 108
Mississippi Department of Employment Security or in Tier Three 109
counties as determined under Section 57-73-21. In all other 110
counties, the business or industry must create and maintain a 111
minimum of twenty-five (25) full-time jobs. The criteria for this 112
requirement shall be based on the designation of the county at the 113
time of the application. The threshold established upon the 114
application will remain constant for the duration of the project. 115
The business or industry must meet its job creation commitment 116
within twenty-four (24) months of the application approval. 117
However, if the qualified business or industry is applying for 118
incentive payments for an additional period under subsection (2) 119
of this section, the business or industry must comply with the 120
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applicable job and wage requirements of subsection (2) of this 121
section. 122
(5) The MDA shall determine if the applicant is qualified to 123
receive incentive payments. If the applicant is determined to be 124
qualified by the MDA, the MDA shall conduct a cost/benefit 125
analysis to determine the estimated net direct state benefits and 126
the net benefit rate applicable for a period not to exceed ten 127
(10) years and to estimate the amount of gross payroll for the 128
period. If the applicant is determined to be qualified to receive 129
incentive payments for an additional period under subsection (2) 130
of this section, the MDA shall conduct a cost/benefit analysis to 131
determine the estimated net direct state benefits and the net 132
benefit rate applicable for the appropriate additional period and 133
to estimate the amount of gross payroll for the additional period. 134
In conducting such cost/benefit analysis, the MDA shall consider 135
quantitative factors, such as the anticipated level of new tax 136
revenues to the state along with the cost to the state of the 137
qualified business or industry, and such other criteria as deemed 138
appropriate by the MDA, including the adequacy of retirement 139
benefits that the business or industry provides to individuals it 140
employs in new direct jobs in this state. In no event shall 141
incentive payments, cumulatively, exceed the estimated net direct 142
state benefits. Once the qualified business or industry is 143
approved by the MDA, an agreement shall be deemed to exist between 144
the qualified business or industry and the State of Mississippi, 145
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requiring the continued incentive payment, together with any 146
amount due pursuant to subsection (8) of this section, if 147
applicable, to be made as long as the qualified business or 148
industry retains its eligibility. 149
(6) Upon approval of such an application, the MDA shall 150
notify the Department of Revenue and shall provide it with a copy 151
of the approved application and the estimated net direct state 152
benefits. The Department of Revenue may require the qualified 153
business or industry to submit such additional information as may 154
be necessary to administer the provisions of this chapter. The 155
qualified business or industry shall report to the Department of 156
Revenue periodically to show its continued eligibility for 157
incentive payments. The qualified business or industry may be 158
audited by the Department of Revenue to verify such eligibility. 159
In addition, the State Auditor may conduct performance and 160
compliance audits under this chapter according to Section 161
7-7-211(o) and may bill the oversight agency. 162
(7) If the qualified business or industry is located in an 163
area that has been declared by the Governor to be a disaster area 164
and as a result of the disaster the business or industry is unable 165
to create or maintain the full-time jobs required by this section: 166
(a) The Commissioner of Revenue may extend the period 167
of time that the business or industry may receive incentive 168
payments for a period of time not to exceed two (2) years; 169
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(b) The Commissioner of Revenue may waive the 170
requirement that a certain number of jobs be maintained for a 171
period of time not to exceed twenty-four (24) months; and 172
(c) The MDA may extend the period of time within which 173
the jobs must be created for a period of time not to exceed 174
twenty-four (24) months. 175
(8) Notwithstanding any other provision of this section to 176
the contrary, from and after January 1, 2023, if the amount of the 177
incentive payment that a qualified business or industry is 178
eligible to receive under this chapter is less than the amount 179
that the incentive payment would have been if the payment had been 180
calculated using any applicable income tax rates in Section 27-7-5 181
that were in effect before January 1, 2023, then the qualified 182
business or industry also shall receive a grant equal to the 183
difference between such two (2) amounts. Further, the term 184
"incentive payment," as such term is used in this chapter, shall 185
be deemed to not refer to or otherwise include any grant payment 186
payable to a qualified business or industry pursuant to this 187
subsection. 188
[For businesses or industries that received or applied for 189
incentive payments from and after July 1, 2005, but prior to July 190
1, 2010, this section shall read as follows:] 191
57-62-9. (1) (a) Except as otherwise provided in this 192
section, a qualified business or industry that meets the 193
qualifications specified in this chapter may receive quarterly 194
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incentive payments for a period not to exceed ten (10) years from 195
the Department of Revenue pursuant to the provisions of this 196
chapter in an amount which shall be equal to the net benefit rate 197
multiplied by the actual gross payroll of new direct jobs for a 198
calendar quarter as verified by the Mississippi Department of 199
Employment Security, but not to exceed: 200
(i) Ninety percent (90%) of the amount of money 201
previously paid into the fund by the employer if the employer 202
provides an average annual salary, excluding benefits which are 203
not subject to Mississippi income taxes, of at least one hundred 204
seventy-five percent (175%) of the most recently published state 205
average annual wage or the most recently published average annual 206
wage of the county in which the qualified business or industry is 207
located as determined by the Mississippi Department of Employment 208
Security, whichever is the lesser; 209
(ii) Eighty percent (80%) of the amount of money 210
previously paid into the fund by the employer if the employer 211
provides an average annual salary, excluding benefits which are 212
not subject to Mississippi income taxes, of at least one hundred 213
twenty-five percent (125%) but less than one hundred seventy-five 214
percent (175%) of the most recently published state average annual 215
wage or the most recently published average annual wage of the 216
county in which the qualified business or industry is located as 217
determined by the Mississippi Department of Employment Security, 218
whichever is the lesser; or 219
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(iii) Seventy percent (70%) of the amount of money 220
previously paid into the fund by the employer if the employer 221
provides an average annual salary, excluding benefits which are 222
not subject to Mississippi income taxes, of less than one hundred 223
twenty-five percent (125%) of the most recently published state 224
average annual wage or the most recently published average annual 225
wage of the county in which the qualified business or industry is 226
located as determined by the Mississippi Department of Employment 227
Security, whichever is the lesser. 228
(b) A qualified business or industry that is a project 229
as defined in Section 57-75-5(f)(iv)1 may elect the date upon 230
which the ten-year period will begin. Such date may not be later 231
than sixty (60) months after the date the business or industry 232
applied for incentive payments. 233
(2) (a) A qualified business or industry that is a project 234
as defined in Section 57-75-5(f)(iv)1 may apply to the MDA to 235
receive incentive payments for an additional period not to exceed 236
five (5) years beyond the expiration date of the initial ten-year 237
period if: 238
(i) The qualified business or industry creates at 239
least three thousand (3,000) new direct jobs within five (5) years 240
after the date the business or industry commences commercial 241
production; 242
(ii) Within five (5) years after the date the 243
business or industry commences commercial production, the average 244
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annual wage of the jobs is at least one hundred fifty percent 245
(150%) of the most recently published state average annual wage or 246
the most recently published average annual wage of the county in 247
which the qualified business or industry is located as determined 248
by the Mississippi Department of Employment Security, whichever is 249
the lesser. The criteria for the average annual wage requirement 250
shall be based upon the state average annual wage or the average 251
annual wage of the county whichever is appropriate, at the time of 252
creation of the minimum number of jobs, and the threshold 253
established at that time will remain constant for the duration of 254
the additional period; and 255
(iii) The qualified business or industry meets and 256
maintains the job and wage requirements of subparagraphs (i) and 257
(ii) of this paragraph (a) for four (4) consecutive calendar 258
quarters. 259
(b) A qualified business or industry that is a project 260
as defined in Section 57-75-5(f)(iv)1 and qualified to receive 261
incentive payments for the additional period provided in paragraph 262
(a) of this subsection (2) may apply to the MDA to receive 263
incentive payments for an additional period not to exceed ten (10) 264
years beyond the expiration date of the additional period provided 265
in paragraph (a) of this subsection (2) if: 266
(i) The qualified business or industry creates at 267
least four thousand (4,000) new direct jobs after qualifying for 268
the additional incentive period provided in paragraph (a) of this 269
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subsection (2) but before the expiration of the additional period. 270
For purposes of determining whether the business or industry meets 271
the minimum jobs requirement of this subparagraph (i), the number 272
of jobs the business or industry created in order to meet the 273
minimum jobs requirement of paragraph (a) of this subsection (2) 274
shall be subtracted from the minimum jobs requirement of this 275
subparagraph (i); 276
(ii) The average annual wage of the jobs is at 277
least one hundred fifty percent (150%) of the most recently 278
published state average annual wage or the most recently published 279
average annual wage of the county in which the qualified business 280
or industry is located as determined by the Mississippi Department 281
of Employment Security, whichever is the lesser. The criteria for 282
the average annual wage requirement shall be based upon the state 283
average annual wage or the average annual wage of the county 284
whichever is appropriate, at the time of creation of the minimum 285
number of jobs, and the threshold established at that time will 286
remain constant for the duration of the additional period; and 287
(iii) The qualified business or industry meets and 288
maintains the job and wage requirements of subparagraphs (i) and 289
(ii) of this paragraph (b) for four (4) consecutive calendar 290
quarters. 291
(3) In order to receive incentive payments, an establishment 292
shall apply to the MDA. The application shall be on a form 293
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prescribed by the MDA and shall contain such information as may be 294
required by the MDA to determine if the applicant is qualified. 295
(4) (a) In order to qualify to receive such payments, the 296
establishment applying shall be required to meet the definition of 297
the term "qualified business or industry"; 298
(b) The criteria for the average annual salary 299
requirement shall be based upon the state average annual wage or 300
the average annual wage of the county whichever is appropriate, at 301
the time of application, and the threshold established upon 302
application will remain constant for the duration of the project; 303
(c) The business or industry must meet its job creation 304
commitment within twenty-four (24) months of the application 305
approval. However, if the qualified business or industry is 306
applying for incentive payments for an additional period under 307
subsection (2) of this section, the business or industry must 308
comply with the applicable job and wage requirements of subsection 309
(2) of this section. 310
(5) (a) The MDA shall determine if the applicant is 311
qualified to receive incentive payments. 312
(b) If the applicant is determined to be qualified to 313
receive incentive payments for an additional period under 314
subsection (2) of this section, the MDA shall conduct a 315
cost/benefit analysis to determine the estimated net direct state 316
benefits and the net benefit rate applicable for the appropriate 317
additional period and to estimate the amount of gross payroll for 318
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the additional period. In conducting such cost/benefit analysis, 319
the MDA shall consider quantitative factors, such as the 320
anticipated level of new tax revenues to the state along with the 321
cost to the state of the qualified business or industry, and such 322
other criteria as deemed appropriate by the MDA, including the 323
adequacy of retirement benefits that the business or industry 324
provides to individuals it employs in new direct jobs in this 325
state. In no event shall incentive payments, cumulatively, exceed 326
the estimated net direct state benefits. Once the qualified 327
business or industry is approved by the MDA, an agreement shall be 328
deemed to exist between the qualified business or industry and the 329
State of Mississippi, requiring the continued incentive payment, 330
together with any amount due pursuant to subsection (8) of this 331
section, if applicable, to be made as long as the qualified 332
business or industry retains its eligibility. 333
(6) Upon approval of such an application, the MDA shall 334
notify the Department of Revenue and shall provide it with a copy 335
of the approved application and the estimated net direct state 336
benefits. The Department of Revenue may require the qualified 337
business or industry to submit such additional information as may 338
be necessary to administer the provisions of this chapter. The 339
qualified business or industry shall report to the Department of 340
Revenue periodically to show its continued eligibility for 341
incentive payments. The qualified business or industry may be 342
audited by the Department of Revenue to verify such eligibility. 343
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In addition, the State Auditor may conduct performance and 344
compliance audits under this chapter according to Section 345
7-7-211(o) and may bill the oversight agency. 346
(7) If the qualified business or industry is located in an 347
area that has been declared by the Governor to be a disaster area 348
and as a result of the disaster the business or industry is unable 349
to create or maintain the full-time jobs required by this section: 350
(a) The Commissioner of Revenue may extend the period 351
of time that the business or industry may receive incentive 352
payments for a period of time not to exceed two (2) years; 353
(b) The Commissioner of Revenue may waive the 354
requirement that a certain number of jobs be maintained for a 355
period of time not to exceed twenty-four (24) months; and 356
(c) The MDA may extend the period of time within which 357
the jobs must be created for a period of time not to exceed 358
twenty-four (24) months. 359
(8) Notwithstanding any other provision of this section to 360
the contrary, from and after January 1, 2023, if the amount of the 361
incentive payment that a qualified business or industry is 362
eligible to receive under this chapter is less than the amount 363
that the incentive payment would have been if the payment had been 364
calculated using any applicable income tax rates in Section 27-7-5 365
that were in effect before January 1, 2023, then the qualified 366
business or industry also shall receive a grant equal to the 367
difference between such two (2) amounts. Further, the term 368
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"incentive payment," as such term is used in this chapter, shall 369
be deemed to not refer to or otherwise include any grant payment 370
payable to a qualified business or industry pursuant to this 371
subsection. 372
[For businesses or industries that apply for incentive 373
payments from and after July 1, 2010, this section shall read as 374
follows:] 375
57-62-9. (1) (a) Except as otherwise provided in this 376
section, a qualified business or industry that meets the 377
qualifications specified in this chapter may receive quarterly 378
incentive payments for a period not to exceed ten (10) years from 379
the Department of Revenue pursuant to the provisions of this 380
chapter in an amount which shall be equal to ninety percent (90%) 381
of the amount of actual income tax withheld for employees with new 382
direct jobs, but in no event more than four percent (4%) of the 383
total annual salary paid for new direct jobs during such period, 384
excluding benefits which are not subject to Mississippi income 385
taxes. 386
(b) A qualified business or industry that is a project 387
as defined in Section 57-75-5(f)(iv)1 may elect the date upon 388
which the ten-year period will begin. Such date may not be later 389
than sixty (60) months after the date the business or industry 390
applied for incentive payments. 391
(c) A qualified business or industry as defined in 392
Section 57-62-5(a)(iii) may elect the date upon which the ten-year 393
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period will begin and may elect to begin receiving incentive 394
payments as early as the second quarter after that date. 395
Incentive payments will be calculated on all jobs above the 396
existing number of jobs as of the date the MDA determines that the 397
applicant is qualified to receive incentive payments. In the 398
event that the qualified business or industry falls below the 399
number of existing jobs at the time of determination that the 400
applicant is qualified to receive the incentive payment, the 401
incentive payment shall cease until the qualified business or 402
industry once again exceeds that number. If after forty-eight 403
(48) months, the qualified business or industry has failed to 404
create at least three thousand (3,000) new direct jobs, incentive 405
payments shall cease and the qualified business or industry shall 406
not be qualified to receive further incentive payments. 407
(2) (a) A qualified business or industry that is a project 408
as defined in Section 57-75-5(f)(iv)1 may apply to the MDA to 409
receive incentive payments for an additional period not to exceed 410
five (5) years beyond the expiration date of the initial ten-year 411
period if: 412
(i) The qualified business or industry creates at 413
least three thousand (3,000) new direct jobs within five (5) years 414
after the date the business or industry commences commercial 415
production; 416
(ii) Within five (5) years after the date the 417
business or industry commences commercial production, the average 418
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annual wage of the jobs is at least one hundred fifty percent 419
(150%) of the most recently published state average annual wage or 420
the most recently published average annual wage of the county in 421
which the qualified business or industry is located as determined 422
by the Mississippi Department of Employment Security, whichever is 423
the lesser. The criteria for the average annual wage requirement 424
shall be based upon the state average annual wage or the average 425
annual wage of the county whichever is appropriate, at the time of 426
creation of the minimum number of jobs, and the threshold 427
established at that time will remain constant for the duration of 428
the additional period; and 429
(iii) The qualified business or industry meets and 430
maintains the job and wage requirements of subparagraphs (i) and 431
(ii) of this paragraph (a) for four (4) consecutive calendar 432
quarters. 433
(b) A qualified business or industry that is a project 434
as defined in Section 57-75-5(f)(iv)1 and qualified to receive 435
incentive payments for the additional period provided in paragraph 436
(a) of this subsection (2) may apply to the MDA to receive 437
incentive payments for an additional period not to exceed ten (10) 438
years beyond the expiration date of the additional period provided 439
in paragraph (a) of this subsection (2) if: 440
(i) The qualified business or industry creates at 441
least four thousand (4,000) new direct jobs after qualifying for 442
the additional incentive period provided in paragraph (a) of this 443
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subsection (2) but before the expiration of the additional period. 444
For purposes of determining whether the business or industry meets 445
the minimum jobs requirement of this subparagraph (i), the number 446
of jobs the business or industry created in order to meet the 447
minimum jobs requirement of paragraph (a) of this subsection (2) 448
shall be subtracted from the minimum jobs requirement of this 449
subparagraph (i); 450
(ii) The average annual wage of the jobs is at 451
least one hundred fifty percent (150%) of the most recently 452
published state average annual wage or the most recently published 453
average annual wage of the county in which the qualified business 454
or industry is located as determined by the Mississippi Department 455
of Employment Security, whichever is the lesser. The criteria for 456
the average annual wage requirement shall be based upon the state 457
average annual wage or the average annual wage of the county 458
whichever is appropriate, at the time of creation of the minimum 459
number of jobs, and the threshold established at that time will 460
remain constant for the duration of the additional period; and 461
(iii) The qualified business or industry meets and 462
maintains the job and wage requirements of subparagraphs (i) and 463
(ii) of this paragraph (b) for four (4) consecutive calendar 464
quarters. 465
(c) A qualified business or industry * * * shall be 466
entitled to receive incentive payments for the full ten-year 467
period provided for in subsection (1) of this section, regardless 468
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of when the qualified business or industry applied for the 469
incentive, if: 470
(i) The qualified business or industry creates at 471
least three hundred (300) new direct jobs after qualifying for the 472
initial incentive period provided in subsection (1) of this 473
section; 474
(ii) The average annual wage of the jobs is at 475
least one hundred fifty percent (150%) of the most recently 476
published state average annual wage or the most recently published 477
average annual wage of the county in which the qualified business 478
or industry is located, as determined by the Mississippi 479
Department of Employment Security, whichever is the lesser. The 480
criteria for the average annual wage requirement shall be based 481
upon the state average annual wage or the average annual wage of 482
the county, whichever is appropriate, at the time of creation of 483
the minimum number of jobs, and the threshold established at that 484
time will remain constant for the duration of the additional 485
period; and 486
(iii) The qualified business or industry meets and 487
maintains the job and wage requirements of subparagraphs (i) and 488
(ii) of this paragraph (c) for four (4) consecutive calendar 489
quarters. 490
(3) In order to receive incentive payments, an establishment 491
shall apply to the MDA. The application shall be on a form 492
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prescribed by the MDA and shall contain such information as may be 493
required by the MDA to determine if the applicant is qualified. 494
(4) (a) In order to qualify to receive such payments, the 495
establishment applying shall be required to meet the definition of 496
the term "qualified business or industry"; 497
(b) The criteria for the average annual salary 498
requirement shall be based upon the state average annual wage or 499
the average annual wage of the county whichever is appropriate, at 500
the time of application, and the threshold established upon 501
application will remain constant for the duration of the project; 502
(c) Except as otherwise provided for a qualified 503
business or industry as defined in Section 57-62-5(a)(iii), the 504
business or industry must meet its job creation commitment within 505
twenty-four (24) months of the application approval. However, if 506
the qualified business or industry is applying for incentive 507
payments for an additional period under subsection (2) of this 508
section, the business or industry must comply with the applicable 509
job and wage requirements of subsection (2) of this section. 510
(5) (a) The MDA shall determine if the applicant is 511
qualified to receive incentive payments. 512
(b) If the applicant is determined to be qualified to 513
receive incentive payments for an additional period under 514
subsection (2) of this section, the MDA shall conduct an analysis 515
to estimate the amount of gross payroll for the appropriate 516
additional period. Incentive payments, cumulatively, shall not 517
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exceed ninety percent (90%) of the amount of actual income tax 518
withheld for employees with new direct jobs, but in no event more 519
than four percent (4%) of the total annual salary paid for new 520
direct jobs during the additional period, excluding benefits which 521
are not subject to Mississippi income taxes. Once the qualified 522
business or industry is approved by the MDA, an agreement shall be 523
deemed to exist between the qualified business or industry and the 524
State of Mississippi, requiring the continued incentive payment, 525
together with any amount due pursuant to subsection (8) of this 526
section, if applicable, to be made as long as the qualified 527
business or industry retains its eligibility. 528
(6) Upon approval of such an application, the MDA shall 529
notify the Department of Revenue and shall provide it with a copy 530
of the approved application and the minimum job and salary 531
requirements. The Department of Revenue may require the qualified 532
business or industry to submit such additional information as may 533
be necessary to administer the provisions of this chapter. The 534
qualified business or industry shall report to the Department of 535
Revenue periodically to show its continued eligibility for 536
incentive payments. The qualified business or industry may be 537
audited by the Department of Revenue to verify such eligibility. 538
In addition, the State Auditor may conduct performance and 539
compliance audits under this chapter according to Section 540
7-7-211(o) and may bill the oversight agency. 541
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(7) If the qualified business or industry is located in an 542
area that has been declared by the Governor to be a disaster area 543
and as a result of the disaster the business or industry is unable 544
to create or maintain the full-time jobs required by this section: 545
(a) The Commissioner of Revenue may extend the period 546
of time that the business or industry may receive incentive 547
payments for a period of time not to exceed two (2) years; 548
(b) The Commissioner of Revenue may waive the 549
requirement that a certain number of jobs be maintained for a 550
period of time not to exceed twenty-four (24) months; and 551
(c) The MDA may extend the period of time within which 552
the jobs must be created for a period of time not to exceed 553
twenty-four (24) months. 554
(8) Notwithstanding any other provision of this section to 555
the contrary, from and after January 1, 2023, if the amount of the 556
incentive payment that a qualified business or industry is 557
eligible to receive under this chapter is less than the amount 558
that the incentive payment would have been if the payment had been 559
calculated using any applicable income tax rates in Section 27-7-5 560
that were in effect before January 1, 2023, then the qualified 561
business or industry also shall receive a grant equal to the 562
difference between such two (2) amounts. Further, the term 563
"incentive payment," as such term is used in this chapter, shall 564
be deemed to not refer to or otherwise include any grant payment 565
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payable to a qualified business or industry pursuant to this 566
subsection. 567
SECTION 2. Section 57-62-13, Mississippi Code of 1972, is 568
brought forward as follows: 569
57-62-13. (1) As soon as practicable after the end of a 570
calendar quarter for which a qualified business or industry has 571
qualified to receive an incentive payment, the qualified business 572
or industry shall file a claim for the payment with the Department 573
of Revenue and shall specify the actual number of new direct jobs 574
created and maintained by the business or industry for the 575
calendar quarter and the gross payroll thereof. The Department of 576
Revenue shall verify the actual number of new direct jobs created 577
and maintained by the business or industry and compliance with the 578
average annual wage requirements for such business or industry 579
under this chapter. If the qualified business or industry files a 580
claim for an incentive payment during an additional incentive 581
period provided under Section 57-62-9(2), the Department of 582
Revenue shall verify the actual number of new direct jobs created 583
and maintained by the business or industry and compliance with the 584
average annual wage requirements for such business or industry 585
under this chapter. If the Department of Revenue is not able to 586
provide such verification utilizing all available resources, the 587
Department of Revenue may request such additional information from 588
the business or industry as may be necessary. 589
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(2) (a) Except as otherwise provided in this chapter, the 590
business or industry must meet the salary and job requirements of 591
this chapter for four (4) consecutive calendar quarters prior to 592
payment of the first incentive payment. Except as otherwise 593
provided in Section 57-62-9, if the business or industry does not 594
maintain the salary or job requirements of this chapter at any 595
other time during the ten-year period after the date the first 596
payment was made, the incentive payments shall not be made and 597
shall not be resumed until such time as the actual verified number 598
of new direct jobs created and maintained by the business or 599
industry equals or exceeds the requirements of this chapter for 600
one (1) calendar quarter. 601
(b) If the business or industry is qualified to receive 602
incentive payments for an additional period provided under Section 603
57-62-9(2), the business or industry must meet the wage and job 604
requirements of Section 57-62-9(2), for four (4) consecutive 605
calendar quarters prior to payment of the first incentive payment. 606
If the business or industry does not maintain the wage or job 607
requirements of Section 57-62-9(2), at any other time during the 608
appropriate additional period after the date the first payment was 609
made, the incentive payments shall not be made and shall not be 610
resumed until such time as the actual verified number of new 611
direct jobs created and maintained by the business or industry 612
equals or exceeds the amounts specified in Section 57-62-9(2), for 613
one (1) calendar quarter. 614
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(3) An establishment that has qualified pursuant to this 615
chapter may receive payments only in accordance with the provision 616
under which it initially applied and was approved. If an 617
establishment that is receiving incentive payments expands, it may 618
apply for additional incentive payments based on the new gross 619
payroll for new direct jobs anticipated from the expansion only, 620
pursuant to this chapter. 621
(4) As soon as practicable after verification of the 622
qualified business or industry meeting the requirements of this 623
chapter and all rules and regulations, the Department of Finance 624
and Administration, upon requisition of the Department of Revenue, 625
shall issue a warrant drawn on the Mississippi Advantage Jobs 626
Incentive Payment Fund to the establishment in the amount of the 627
incentive payment as determined pursuant to subsection (1) of this 628
section for the calendar quarter. 629
SECTION 3. Section 57-114-5, Mississippi Code of 1972, is 630
amended as follows: 631
57-114-5. Application for the mFlex tax incentive. Business 632
or industrial enterprises wishing to apply for the mFlex tax 633
incentive authorized by this chapter shall make application to the 634
authority, on a form prescribed thereby; provided that the 635
application shall, at a minimum, contain: 636
(a) A brief overview of the applicant's business or 637
industry, including its formation type (e.g., corporation, limited 638
liability company, limited partnership, etc.), its date of 639
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incorporation or formation thereof, and the location of its 640
principal headquarters, together with its principal place of 641
business in the state, if the applicant already has one or more 642
facilities located in the state; 643
(b) The location of the selected project site or 644
locations of selected project sites, if multiple locations will be 645
involved; 646
(c) A description of the proposed project; 647
(d) The amount of the qualified investment proposed to 648
be made as a result of the proposed project, including a breakout 649
of projected expenditures for manufacturing machinery, 650
nonmanufacturing equipment and component building materials to 651
establish and equip the proposed project; 652
(e) If the proposed project will be an expansion of an 653
existing business or industrial operation, the current number of 654
base full-time jobs; 655
(f) The number of new full-time jobs proposed to be 656
created as a result of the proposed project; 657
(g) The average employer wage proposed to be paid by 658
the applicant for new full-time jobs disclosed in the application; 659
(h) A description of benefits, including but not 660
limited to, health, dental and/or vision insurance, retirement 661
savings account, etc. made available to employees, as well as a 662
description of any employees to whom such benefits are not made 663
available (e.g., part-time employees); 664
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(i) The length of time necessary for the applicant to 665
meet its qualified investment and new full-time job creation 666
projections; 667
(j) A list of all affiliates of the qualified business 668
or industry known at the time of the application, including the 669
Federal Employer Identification Number for each such affiliate, 670
which have or are expected to have any state tax liability that 671
may be offset by all or some portion of the mFlex tax incentives 672
awarded to the qualified business or industry; 673
(k) An acknowledgment that the applicant, if awarded an 674
mFlex tax incentive pursuant to this chapter, will be required to 675
provide the annual report prescribed by Section 57-114-13 to 676
demonstrate the actual amount of its qualified investment, 677
including actual expenditures on manufacturing machinery, 678
nonmanufacturing equipment and component building materials, and 679
the number of new full-time jobs created and maintained as a 680
result of the project; and 681
(l) Any other information as may be requested by the 682
authority. 683
SECTION 4. Section 57-114-7, Mississippi Code of 1972, is 684
amended as follows: 685
57-114-7. (1) The authority shall evaluate an application 686
to determine whether the applicant's proposed project is a 687
qualified economic development project and whether it is therefore 688
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eligible for an award by the authority of an mFlex tax incentive, 689
as calculated in accordance with Section 57-114-9. 690
(2) Upon approval of an applicant's application, the 691
authority shall issue a certification (a) designating the 692
applicant's project as a "qualified economic development project" 693
and eligible for the mFlex tax incentive authorized by this 694
chapter; (b) awarding the initial mFlex tax incentive calculated 695
pursuant to Section 57-114-9; and (c) imposing those mandatory 696
conditions pursuant to subsection (4) of this section and any 697
discretionary conditions otherwise imposed by the authority. 698
(3) Upon the issuance of the certification and execution of 699
the mFlex agreement by a qualified business or industry and the 700
authority, the qualified business or industry may apply the amount 701
of its mFlex tax incentive as a credit to offset (a) any state 702
taxes (except for withholding tax required to be deducted and 703
withheld from employee wages pursuant to Section 27-7-301 et 704
seq.), as incurred thereby, up to the full amount of the mFlex tax 705
incentive awarded by the authority for the associated qualified 706
economic development project, and (b) only up to twenty percent 707
(20%) of the mFlex tax incentive amount may be applied as a credit 708
during the course of any reporting year to offset withholding tax 709
deducted and withheld from employee wages pursuant to Section 710
27-7-301 et seq.; provided that the amount of the mFlex tax 711
incentive available to be applied as a credit to offset such state 712
taxes shall be subject to any subsequent adjustments made by the 713
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authority to such award pursuant to Section 57-114-13, and any 714
performance requirements set out in the mFlex agreement. The 715
amount of the mFlex tax incentive available to be applied as a 716
credit to offset any state taxes described in Section 717
57-114-3(bb)(i) shall be limited to those such taxes payable 718
directly by the qualified business or industry to the Department 719
of Revenue pursuant to a direct pay permit issued by the 720
Department of Revenue under Section 27-65-93. The amount of the 721
mFlex tax incentive available to be applied as a credit to offset 722
any state taxes may not be applied as a credit to offset any state 723
taxes incurred prior to the issuance of the certification by the 724
authority and execution of the mFlex agreement by the qualified 725
business or industry and the authority. 726
(4) The following conditions shall apply to each such 727
certification made, and each mFlex tax incentive awarded, by the 728
authority in accordance with this chapter: 729
(a) Any certification and mFlex tax incentive award 730
issued by the authority under this chapter is nontransferable and 731
cannot be applied, used or assigned to any other person or 732
business or tax account without prior approval by the authority, 733
except for one or more affiliates of the qualified business or 734
industry disclosed thereby on its application or in a subsequent 735
annual report submitted to the authority in accordance with this 736
chapter; 737
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(b) No qualified business or industry may claim or use 738
the mFlex tax incentive awarded thereto under this chapter unless 739
the qualified business or industry is in full compliance with all 740
state and local tax laws, and related ordinances, permits and 741
other applicable governmental approvals; and 742
(c) Each qualified business or industry must enter into 743
an mFlex agreement with the authority which sets out, at a 744
minimum, (i) the obligation of the business or industry to provide 745
an annual report to the authority pursuant to Section 57-114-13 746
that demonstrates the actual amount of its qualified investment, 747
including actual expenditures on manufacturing machinery, 748
nonmanufacturing equipment and component building materials, the 749
number of new full-time jobs created and maintained as a result of 750
the project, and any other relevant information as may be required 751
by the authority; and (ii) terms for readjustment or recapture of 752
all or a portion of the mFlex tax incentive awarded thereto 753
pursuant to Section 57-114-13 if the applicant 1. fails to satisfy 754
the minimum job creation requirement if certification of the 755
project is predicated on satisfaction of the minimum job creation 756
requirement and not the minimum qualified investment, or 2. fails 757
to satisfy the minimum qualified investment if certification of 758
the project is predicated on satisfaction of the minimum job 759
creation requirement and not the minimum qualified investment, 760
and/or 3. fails to otherwise satisfy any other additional 761
performance requirements of the qualified business or industry or 762
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its qualified economic development project that are imposed by the 763
authority. 764
(5) In addition to those mandatory conditions prescribed by 765
this chapter that apply to each certification and award of an 766
mFlex tax incentive made by the authority in accordance herewith, 767
the authority is authorized to impose any other conditions upon 768
any certification and award of an mFlex tax incentive made by the 769
authority as it shall find best promotes economic development in 770
the state. 771
(6) Upon certifying a qualified business or industry as 772
eligible for, and awarding, an mFlex tax incentive under this 773
chapter, the authority shall forward the certification along with 774
any other necessary information to the Department of Revenue so 775
that the mFlex tax incentive awarded to the qualified business or 776
industry can be recorded by the Department of Revenue and used to 777
verify each state tax credit subsequently applied by the qualified 778
business or industry. 779
(7) Within thirty (30) days following the end of each 780
calendar quarter, the authority shall provide to the Governor, 781
Lieutenant Governor and the Speaker of the House of 782
Representatives a copy of each certification made, together with a 783
copy of each mFlex agreement approved and executed, during the 784
immediately preceding calendar quarter. 785
SECTION 5. Section 57-114-9, Mississippi Code of 1972, is 786
amended as follows: 787
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57-114-9. Calculation and application of an mFlex tax 788
incentive award. The total amount of the initial mFlex tax 789
incentive determined and awarded by the authority to the certified 790
applicant shall be calculated by the authority as follows: 791
(a) Subject to paragraph (f) below, one and one-half 792
percent (1.5%) of the total purchase or sales price, or value, 793
including any installation costs thereof, as applicable, of all 794
manufacturing or processing machinery acquired, leased or 795
otherwise moved into the state following the project certification 796
date to establish and equip the qualified economic development 797
project; plus 798
(b) Subject to paragraph (f) below, seven percent (7%) 799
of the total purchase or sales price, or value, including any 800
installation costs thereof, as applicable, of all nonmanufacturing 801
equipment, other than tagged over-the-road vehicles, acquired, 802
leased or otherwise moved into the state following the project 803
certification date to establish and equip the qualified economic 804
development project; plus 805
(c) Subject to paragraph (f) below, two percent (2%) of 806
the total contract price or compensation paid to any contractor 807
pursuant to any construction contract entered into following the 808
project certification date by the qualified business or industry 809
or any affiliate thereof, to construct, build, erect, repair or 810
add to any building, facility, structure or other improvement to 811
real property described in Section 27-65-21(1)(a)(i) to establish 812
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and construct the qualified economic development project; plus, if 813
applicable; 814
(d) To the extent that the average employer wage is 815
equal to or more than seventy-five percent (75%) of the average 816
state or county wage, then an additional fifteen percent (15%) of 817
the product derived by multiplying the average employer wage by 818
the number of new full-time jobs; plus, if applicable; 819
(e) (i) To the extent that 1. the qualified economic 820
development project is an enterprise enumerated in Section 821
57-114-3(x)(i) or (x)(ii); 2. the number of new full-time jobs 822
totals fifty (50) or more; 3. the qualified investment totals Ten 823
Million Dollars ($10,000,000) or more; 4. the average employer 824
wage is equal to or more than one hundred ten percent (110%) of 825
the average state or county wage; and 5. all full-time employees 826
are eligible for and offered health insurance coverage funded in 827
whole or at least fifty percent (50%) by the qualified business or 828
industry (or by a leasing company with respect to leased 829
employees), then an additional thirty percent (30%) of the product 830
derived by multiplying the average employer wage by the number of 831
new full-time jobs; or 832
(ii) To the extent that subparagraph (i) of this 833
paragraph (e) does not apply, but 1. the number of new full-time 834
jobs totals twenty-five (25) or more; 2. the average employer wage 835
is equal to or more than one hundred twenty-five percent (125%) of 836
the average state or county wage; and 3. all full-time employees 837
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are eligible for and offered health insurance coverage funded in 838
whole or at least fifty percent (50%) by the qualified business or 839
industry (or by a leasing company with respect to leased 840
employees), then an additional thirty percent (30%) of the product 841
derived by multiplying the average employer wage by the number of 842
new full-time jobs; provided, however, that the initial mFlex tax 843
incentive award amount determined by the authority and awarded on 844
the project certification date shall be based upon estimates 845
provided by the qualified business or industry to the authority 846
with respect to paragraphs (a) through (d) of this section, which 847
estimates shall be memorialized as project performance measures 848
agreed to by the qualified business or industry in the mFlex 849
agreement; provided, further, that such initial award amount shall 850
be subject to any subsequent adjustments made by the authority 851
pursuant to Section 57-114-13; 852
(f) To the extent that all or any portion of the 853
purchases to establish a qualified economic development project 854
which are financed by proceeds from bonds issued pursuant to 855
Section 57-10-201 et seq. or Section 57-10-401 et seq., the mFlex 856
tax incentive determined in accordance with this section shall 857
exclude the amount calculated in accordance with paragraphs (a), 858
(b) and (c) above; provided that, this paragraph (f) shall not 859
apply in determining the mFlex tax incentive for a qualified 860
economic development project to the extent that (i) the qualified 861
economic development project is an expansion of an existing 862
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ST: Mississippi Advantage Jobs Act; expand
conditions for certain qualified businesses or
industries receiving incentive payments.
project, (ii) all or any portion of the purchases to establish the 863
existing project were financed by proceeds from bonds issued 864
pursuant to Section 57-10-201 et seq. or Section 57-10-401 et 865
seq., and (iii) no purchases to establish the expansion 866
constituting a qualified economic development project are financed 867
by proceeds from bonds issued pursuant to Section 57-10-201 et 868
seq. or Section 57-10-401 et seq. 869
SECTION 6. This act shall take effect and be in force from 870
and after July 1, 2026, and shall stand repealed on June 30, 2026. 871