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S. B. No. 2865 *SS36/R991* ~ OFFICIAL ~ R3/5
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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Senator(s) DeLano, Thompson, England,
Wiggins
SENATE BILL NO. 2865
AN ACT TO PROVIDE AN INCOME TAX CREDIT FOR CERTAIN GAMING 1
LICENSEES MAKING EXPENDITURES OF AT LEAST $2,000,000.00 ON BEHALF 2
OF GROWTH CAPITAL INVESTMENT PROJECTS CONSTRUCTING OR EXPANDING 3
NONGAMING FACILITIES AT EXISTING CASINO PROPERTIES, FOR THE 4
PURPOSE OF INCREASING ECONOMIC ACTIVITY AT SUCH PROPERTIES; TO 5
PROVIDE THAT THE CREDIT SHALL BE FOR AN AMOUNT EQUAL TO 50% OF THE 6
INCREMENTAL GAMING TAXES PAID BY THE ENTITY; TO DEFINE INCREMENTAL 7
GAMING TAXES AS THE DIFFERENCE BETWEEN AN ENTITY'S GAMING TAXES 8
PAID ANNUALLY FOR THE FIRST 10 YEARS AFTER THE OPENING OF THE 9
GROWTH CAPITAL INVESTMENT PROJECT AND THE ANNUALIZED AVERAGE OF 10
THE ENTITY'S GAMING TAXES PAID FOR THE THREE-YEAR PERIOD BEFORE 11
THE OPENING OF SUCH PROJECT; TO PROVIDE THAT THE AMOUNT OF THE 12
CREDIT THAT MAY BE UTILIZED BY AN ENTITY IN ANY TAX YEAR SHALL BE 13
NOT GREATER THAN THE TOTAL INCOME TAX LIABILITY OF THE ENTITY, AND 14
THE TOTAL AMOUNT OF THE CREDIT CLAIMED FOR ANY PROJECT MAY NOT 15
EXCEED THE COST OF THAT PROJECT; TO ALLOW AN UNUSED CREDIT TO BE 16
CARRIED FORWARD FOR FIVE CONSECUTIVE YEARS AFTER THE CREDIT WAS 17
EARNED; TO PROVIDE THAT AN ENTITY SHALL APPLY TO THE MISSISSIPPI 18
GAMING COMMISSION, WHICH SHALL DETERMINE THE ELIGIBILITY OF AN 19
EXPENDITURE TO QUALIFY AS A GROWTH CAPITAL INVESTMENT PROJECT FOR 20
PURPOSES OF THE CREDIT; TO PROVIDE THAT THE GAMING COMMISSION 21
SHALL NOT ISSUE CERTIFICATES OF ELIGIBILITY UNDER THIS ACT AFTER 22
DECEMBER 31, 2030; AND FOR RELATED PURPOSES. 23
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 24
SECTION 1. (1) As used in this section, the following terms 25
and phrases shall have the meanings ascribed herein: 26
(a) "Entity" means a gaming licensee having operated in 27
Mississippi for at least five (5) years and making an expenditure 28
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on behalf of a growth capital investment project at its casino 29
property. 30
(b) "Gaming taxes" means all taxes paid by an entity on 31
its gaming revenue, excluding the gross revenue license fee 32
imposed under Section 75-76-177. 33
(c) "Growth capital investment project" or "project" 34
means a new capital project with an investment of no less than Two 35
Million Dollars ($2,000,000.00) at an existing casino property 36
designed to increase economic activity at the property, including, 37
but not limited to, the construction, renovation, upgrades or 38
expansion of hotels, recreational vehicle (RV) parks, 39
entertainment venues, restaurants, marinas or other nongaming 40
attractions not including the construction, expansion, renovation 41
or upgrade of gaming facilities. 42
(d) "Incremental gaming taxes" means an amount 43
calculated annually as the difference between an entity's gaming 44
taxes paid for a twelve-month period beginning on the first day of 45
the month following the opening of a growth capital investment 46
project, or the first day of the same month in the next nine (9) 47
years, and the entity's gaming taxes paid for an annualized 48
three-year average of the thirty-six-month period ending with the 49
full month immediately prior to the opening of the project. 50
(2) Any entity shall be allowed a credit against the taxes 51
imposed by this chapter. The credit shall be for an amount equal 52
to fifty percent (50%) of the incremental gaming taxes paid by the 53
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entity. However, the amount of the credit that may be utilized by 54
an entity in any one (1) tax year shall be limited to an amount 55
not greater than the total tax liability of the entity under this 56
chapter, and the total amount of the credit claimed for any one 57
(1) project may not exceed the cost of that project. An entity 58
may claim the credit for the tax year after the twelve-month 59
period for which the incremental gaming taxes were calculated. 60
Any credit claimed under this section but not used in any tax year 61
may be carried forward for the five (5) succeeding tax years from 62
the close of the tax year in which the credit was earned. 63
(3) In order to claim a credit authorized under this 64
section, an entity shall apply to the Mississippi Gaming 65
Commission, which shall determine the eligibility of an 66
expenditure to qualify as a growth capital investment project. 67
The Gaming Commission shall issue a certificate evidencing its 68
determination that the entity is eligible for the credit. The 69
entity shall attach the certificate to all applicable returns on 70
which the credit is claimed. The Gaming Commission shall not 71
issue certificates of eligibility under this section after 72
December 31, 2030. 73
(4) The Gaming Commission and the Department of Revenue 74
shall have all powers necessary to implement and administer the 75
provisions of this section and may promulgate rules and 76
regulations, in accordance with the Mississippi Administrative 77
Procedures Law, necessary for the implementation of this section. 78
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ST: Income tax; authorize credit for added tax
revenue from certain nongaming capital
investment projects at casinos.
SECTION 2. Section 1 of this act shall be codified as a new 79
section in Chapter 7, Title 27, Mississippi Code of 1972. 80
SECTION 3. This act shall take effect and be in force from 81
and after January 1, 2026. 82