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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Senator(s) Harkins
SENATE BILL NO. 3116
AN ACT TO AMEND SECTION 27-31-46, MISSISSIPPI CODE OF 1972, 1
TO REVISE THE DEFINITION OF "PROJECT" TO INCLUDE FACILITIES 2
STORING ENERGY USING BATTERY ENERGY STORAGE SYSTEMS, FOR PURPOSES 3
OF A COUNTY'S AUTHORITY TO GRANT CERTAIN AD VALOREM TAX EXEMPTIONS 4
OF UP TO 50% OF THE TOTAL ASSESSED VALUE OF CERTAIN PROJECTS; TO 5
AMEND SECTION 27-31-101, MISSISSIPPI CODE OF 1972, TO ADD BATTERY 6
ENERGY STORAGE SYSTEM FACILITIES, FOR PURPOSES OF A COUNTY'S OR A 7
MUNICIPALITY'S AUTHORITY TO GRANT CERTAIN AD VALOREM TAX 8
EXEMPTIONS; TO EXTEND THE DATE OF THE REVERTER ON THE STATUTE; AND 9
FOR RELATED PURPOSES. 10
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 11
SECTION 1. Section 27-31-46, Mississippi Code of 1972, is 12
amended as follows: 13
27-31-46. (1) As used in this section, "project" means a 14
facility, placed in operation after April 16, 2021, (a) generating 15
energy through the use of a renewable energy source such as wind, 16
water, biomass or solar, or (b) storing energy using battery 17
energy storage systems, whether standalone or co-located with a 18
renewable generation facility. 19
(2) In any project with a capital investment from private 20
sources of not less than One Hundred Million Dollars 21
($100,000,000.00), all property, whether real, personal or mixed, 22
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including fixtures and leaseholds utilized in the project, 23
including, but not limited to, operational and environmental 24
property utilized in the project, may be exempted by the county 25
board of supervisors from ad valorem taxation up to an amount not 26
to exceed fifty percent (50%) of the total assessed value of the 27
project. 28
SECTION 2. Section 27-31-101, Mississippi Code of 1972, is 29
amended as follows: 30
[Through June 30, * * * 2028, this section shall read as 31
follows:] 32
27-31-101. (1) County boards of supervisors and municipal 33
authorities are hereby authorized and empowered, in their 34
discretion, to grant exemptions from ad valorem taxation, except 35
state ad valorem taxation; however, such governing authorities 36
shall not exempt ad valorem taxes for school district purposes on 37
tangible property used in, or necessary to, the operation of the 38
manufacturers and other new enterprises enumerated by classes in 39
this section, except to the extent authorized in Sections 40
27-31-104 and 27-31-105(2), nor shall they exempt from ad valorem 41
taxes the products of the manufacturers or other new enterprises 42
or automobiles and trucks belonging to the manufacturers or other 43
new enterprises operating on and over the highways of the State of 44
Mississippi. The time of such exemption shall be for a period not 45
to exceed a total of ten (10) years, which shall begin on the date 46
of completion of the new enterprise for which the exemption is 47
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granted; however, boards of supervisors and municipal authorities, 48
in lieu of granting the exemption for one (1) period of ten (10) 49
years, may grant the exemption in a period of less than ten (10) 50
years. When the initial exemption period granted is less than ten 51
(10) years, the boards of supervisors and municipal authorities 52
may grant a subsequent consecutive period or periods to follow the 53
initial period of exemption, provided that the total of all 54
periods of exemption shall not exceed ten (10) years. The date of 55
completion of the new enterprise, from which the initial period of 56
exemption shall begin, shall be the date on which operations of 57
the new enterprise begin. The initial request for an exemption 58
must be made in writing by June 1 of the year immediately 59
following the year in which the date of completion of a new 60
enterprise occurs. If the initial request for the exemption is 61
not timely made, the board of supervisors or municipal authorities 62
may grant a subsequent request for the exemption and, in such 63
case, the exemption shall begin on the anniversary date of 64
completion of the enterprise in the year in which the request is 65
made and may be for a period of time extending not more than ten 66
(10) years from the date of completion of the new enterprise. Any 67
subsequent request for the exemption must be made in writing by 68
June 1 of the year in which it is granted. 69
(2) Any board of supervisors or municipal authority which 70
has granted an exemption for a period of less than ten (10) years 71
may grant subsequent periods of exemption to run consecutively 72
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with the initial exemption period, or a subsequently granted 73
exemption period, but in no case shall the total of the exemption 74
periods granted for a new enterprise exceed ten (10) years. Any 75
consecutive period of exemption shall be granted by entry of an 76
order by the board or the authority granting the consecutive 77
exemption on its minutes, reflecting the granting of the 78
consecutive exemption period and the dates upon which such 79
consecutive exemption period begins and expires. The entry of 80
this order granting the consecutive period of exemption shall be 81
made before the expiration of the exemption period immediately 82
preceding the consecutive exemption period being granted. 83
(3) (a) The new enterprises for which any or all of the 84
tangible property described in paragraph (b) of this subsection 85
(3) may be exempt from ad valorem taxation, except state ad 86
valorem taxation, ad valorem taxes for school district purposes, 87
and ad valorem taxes on the products thereof or on automobiles and 88
trucks belonging thereto and operating on and over the highways of 89
the State of Mississippi, are enumerated as and limited to the 90
following, as determined by the Department of Revenue: 91
(i) Warehouse and/or distribution centers; 92
(ii) Manufacturing, processors and refineries; 93
(iii) Research facilities; 94
(iv) Corporate regional and national headquarters 95
meeting minimum criteria established by the Mississippi 96
Development Authority; 97
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(v) Movie industry studios meeting minimum 98
criteria established by the Mississippi Development Authority; 99
(vi) Air transportation and maintenance facilities 100
meeting minimum criteria established by the Mississippi 101
Development Authority; 102
(vii) Recreational facilities that impact tourism 103
meeting minimum criteria established by the Mississippi 104
Development Authority; 105
(viii) Data/information processing enterprises 106
meeting minimum criteria established by the Mississippi 107
Development Authority; 108
(ix) Technology intensive enterprises or 109
facilities meeting criteria established by the Mississippi 110
Development Authority; 111
(x) Health care industry facilities as defined in 112
Section 57-117-3; 113
(xi) Data centers as defined in Section 57-113-21; 114
(xii) Telecommunications enterprises meeting 115
minimum criteria established by the Mississippi Development 116
Authority. The term "telecommunications enterprises" means 117
entities engaged in the creation, display, management, storage, 118
processing, transmission or distribution for compensation of 119
images, text, voice, video or data by wire or by wireless means, 120
or entities engaged in the construction, design, development, 121
manufacture, maintenance or distribution for compensation of 122
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devices, products, software or structures used in the above 123
activities. Companies organized to do business as commercial 124
broadcast radio stations, television stations or news 125
organizations primarily serving in-state markets shall not be 126
included within the definition of the term "telecommunications 127
enterprises"; * * * 128
(xiii) Controlled environment agriculture 129
enterprises meeting minimum criteria established by the 130
Mississippi Development Authority * * *; and 131
(xiv) Battery energy storage system facilities. 132
The new enterprises enumerated in this paragraph (a) do not 133
include medical cannabis establishments as defined in Section 134
41-137-3 of the Mississippi Medical Cannabis Act. 135
(b) An exemption from ad valorem taxes granted under 136
this section may include any or all tangible property, real or 137
personal, including any leasehold interests therein but excluding 138
automobiles and trucks operating on and over the highways of the 139
State of Mississippi, used in connection with, or necessary to, 140
the operation of an enterprise enumerated in paragraph (a) of this 141
subsection (3), whether or not such property is owned, leased, 142
subleased, licensed or otherwise obtained by such enterprise, 143
irrespective of the taxpayer to which any such leased property is 144
assessed for ad valorem tax purposes. If an exemption is granted 145
pursuant to this section with respect to any leasehold interest 146
under a lease, sublease or license of tangible property used in 147
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connection with, or necessary to, the operation of an enterprise 148
enumerated in paragraph (a) of this subsection (3), the 149
corresponding ownership interest of the owner, lessor and 150
sublessor of such tangible property shall similarly and 151
automatically be exempt without any action being required to be 152
taken by such owner, lessor or sublessor. 153
(4) Any exemption from ad valorem taxes granted under this 154
section before March 28, 2019, and consistent herewith, is hereby 155
ratified, approved and confirmed. 156
[From and after July 1, * * * 2028, this section shall read 157
as follows:] 158
27-31-101. (1) County boards of supervisors and municipal 159
authorities are hereby authorized and empowered, in their 160
discretion, to grant exemptions from ad valorem taxation, except 161
state ad valorem taxation; however, such governing authorities 162
shall not exempt ad valorem taxes for school district purposes on 163
tangible property used in, or necessary to, the operation of the 164
manufacturers and other new enterprises enumerated by classes in 165
this section, except to the extent authorized in Sections 166
27-31-104 and 27-31-105(2), nor shall they exempt from ad valorem 167
taxes the products of the manufacturers or other new enterprises 168
or automobiles and trucks belonging to the manufacturers or other 169
new enterprises operating on and over the highways of the State of 170
Mississippi. The time of such exemption shall be for a period not 171
to exceed a total of ten (10) years, which shall begin on the date 172
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of completion of the new enterprise for which the exemption is 173
granted; however, boards of supervisors and municipal authorities, 174
in lieu of granting the exemption for one (1) period of ten (10) 175
years, may grant the exemption in a period of less than ten (10) 176
years. When the initial exemption period granted is less than ten 177
(10) years, the boards of supervisors and municipal authorities 178
may grant a subsequent consecutive period or periods to follow the 179
initial period of exemption, provided that the total of all 180
periods of exemption shall not exceed ten (10) years. The date of 181
completion of the new enterprise, from which the initial period of 182
exemption shall begin, shall be the date on which operations of 183
the new enterprise begin. The initial request for an exemption 184
must be made in writing by June 1 of the year immediately 185
following the year in which the date of completion of a new 186
enterprise occurs. If the initial request for the exemption is 187
not timely made, the board of supervisors or municipal authorities 188
may grant a subsequent request for the exemption and, in such 189
case, the exemption shall begin on the anniversary date of 190
completion of the enterprise in the year in which the request is 191
made and may be for a period of time extending not more than ten 192
(10) years from the date of completion of the new enterprise. Any 193
subsequent request for the exemption must be made in writing by 194
June 1 of the year in which it is granted. 195
(2) Any board of supervisors or municipal authority which 196
has granted an exemption for a period of less than ten (10) years 197
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may grant subsequent periods of exemption to run consecutively 198
with the initial exemption period, or a subsequently granted 199
exemption period, but in no case shall the total of the exemption 200
periods granted for a new enterprise exceed ten (10) years. Any 201
consecutive period of exemption shall be granted by entry of an 202
order by the board or the authority granting the consecutive 203
exemption on its minutes, reflecting the granting of the 204
consecutive exemption period and the dates upon which such 205
consecutive exemption period begins and expires. The entry of 206
this order granting the consecutive period of exemption shall be 207
made before the expiration of the exemption period immediately 208
preceding the consecutive exemption period being granted. 209
(3) (a) The new enterprises for which any or all of the 210
tangible property described in paragraph (b) of this subsection 211
(3) may be exempt from ad valorem taxation, except state ad 212
valorem taxation, ad valorem taxes for school district purposes, 213
and ad valorem taxes on the products thereof or on automobiles and 214
trucks belonging thereto and operating on and over the highways of 215
the State of Mississippi, are enumerated as and limited to the 216
following, as determined by the Department of Revenue: 217
(i) Warehouse and/or distribution centers; 218
(ii) Manufacturing, processors and refineries; 219
(iii) Research facilities; 220
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(iv) Corporate regional and national headquarters 221
meeting minimum criteria established by the Mississippi 222
Development Authority; 223
(v) Movie industry studios meeting minimum 224
criteria established by the Mississippi Development Authority; 225
(vi) Air transportation and maintenance facilities 226
meeting minimum criteria established by the Mississippi 227
Development Authority; 228
(vii) Recreational facilities that impact tourism 229
meeting minimum criteria established by the Mississippi 230
Development Authority; 231
(viii) Data/information processing enterprises 232
meeting minimum criteria established by the Mississippi 233
Development Authority; 234
(ix) Technology intensive enterprises or 235
facilities meeting criteria established by the Mississippi 236
Development Authority; 237
(x) Data centers as defined in Section 57-113-21; 238
(xi) Telecommunications enterprises meeting 239
minimum criteria established by the Mississippi Development 240
Authority. The term "telecommunications enterprises" means 241
entities engaged in the creation, display, management, storage, 242
processing, transmission or distribution for compensation of 243
images, text, voice, video or data by wire or by wireless means, 244
or entities engaged in the construction, design, development, 245
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manufacture, maintenance or distribution for compensation of 246
devices, products, software or structures used in the above 247
activities. Companies organized to do business as commercial 248
broadcast radio stations, television stations or news 249
organizations primarily serving in-state markets shall not be 250
included within the definition of the term "telecommunications 251
enterprises"; * * * 252
(xii) Controlled environment agriculture 253
enterprises meeting minimum criteria established by the 254
Mississippi Development Authority * * *; and 255
(xiii) Battery energy storage system facilities. 256
The new enterprises enumerated in this paragraph (a) do not 257
include medical cannabis establishments as defined in Section 258
41-137-3 of the Mississippi Medical Cannabis Act. 259
(b) An exemption from ad valorem taxes granted under 260
this section may include any or all tangible property, real or 261
personal, including any leasehold interests therein but excluding 262
automobiles and trucks operating on and over the highways of the 263
State of Mississippi, used in connection with, or necessary to, 264
the operation of an enterprise enumerated in paragraph (a) of this 265
subsection (3), whether or not such property is owned, leased, 266
subleased, licensed or otherwise obtained by such enterprise, 267
irrespective of the taxpayer to which any such leased property is 268
assessed for ad valorem tax purposes. If an exemption is granted 269
pursuant to this section with respect to any leasehold interest 270
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ST: Ad valorem tax; add categories for energy
projects and enterprises for purposes of certain
exemptions.
under a lease, sublease or license of tangible property used in 271
connection with, or necessary to, the operation of an enterprise 272
enumerated in paragraph (a) of this subsection (3), the 273
corresponding ownership interest of the owner, lessor and 274
sublessor of such tangible property shall similarly and 275
automatically be exempt without any action being required to be 276
taken by such owner, lessor or sublessor. 277
(4) Any exemption from ad valorem taxes granted under this 278
section before March 28, 2019, and consistent herewith, is hereby 279
ratified, approved and confirmed. 280
SECTION 3. This act shall take effect and be in force from 281
and after July 1, 2026. 282