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Incentives for Industry

Jobs tax credits are credits that can be applied to state income
tax to reduce an employer’s income tax liability. These credits are
earned by certain types of businesses that create and sustain new
jobs in Mississippi. The following businesses qualify for these
credits:

Manufacturers
Wholesalers
Processors
Research and Development Facilities
Distributors
Warehouses

In addition, the following businesses qualify upon receiving a designation
by the Mississippi Development Authority:

Air and Transportation Maintenance Facilities, Telecommunications
Companies, Data and Information Processing Companies, Computer
Software Development Enterprises, Recreational Facilities that impact
Tourism, Resort hotels having a minimum of 150 rooms, Movie Industry
Studios and Technology intensive facilities.

Program Facts

Jobs Tax Credits are calculated as a percentage of eligible payroll each
year for five years, based on job location and wages subject to state
income tax. The credits are taken in years two through six after the new
jobs are created.

To be eligible for this credit, the employer must create and maintain an
annual average employment of the minimum number of jobs required
based on the development ranking of the county.

  County Classification       Jobs                      Credit Amount

  Tier II                               15 or more              5% of Payroll

Walthall County is classified as a Tier II County for 2010.

Credits can be used to offset up to fifty percent of the entity’s income tax
liability, and unused jobs tax credits can be carried forward up to five
years.

For further details, see the Mississippi Tax Incentives, Exemptions, and
Credits on the State Tax Commission’s website http://www.mstc.state.ms.
us/revenue/incentive/2008IncentiveBook.pdf, or Section 57-73-21, Ms
Code 1972, Annotated. To request these documents or for assistance,
contact the State Tax Commission at (601)923-7044 or the Financial
Resources Division at financial@mississippi.org or (601)359-3552.

Sales Tax Exemption - component materials used in the
construction of a facility and the sales or leases of machinery and
equipment not later than 3 months after the completion of
construction of the facility may receive a full exemption against
sales tax on purchases of raw materials, packaging materials or
processing chemicals. (data/information and technology intensive
enterprises are now added to an existing exemption)
Property Tax Exemption - allows local governing authorities to
exempt all taxes except school taxes for ten years for eligible
entities. This exemption applies to land, building, equipment, and
certain inventory.
Alternative Energy Project - a new income tax credit equal to
$1,000 annually for each new full-time job for a period of twenty
years from the date the credit begins. The credit shall begin on
the date selected by the producer; however, the beginning date
shall not be more than five years from the date the producer
begins manufacturing or producing alternative energy. Once a
producer creates and maintains 25 new full-time jobs, the
producer shall be eligible for the credit. Any unused credits can be
carried forward for five years. These credits shall be in lieu of the
jobs tax, research and development, and headquarters credit.
Existing Manufacturer Credit - A new income tax credit
available to a manufacturer that has operated in the state for at
least two years and invests at least $1,000,000 in buildings and/or
equipment. The credit will be 5% of the eligible investment. The
credit cannot exceed 50% of the income tax liability in any given
year, but any unused credits can be carried forward for five years.

The maximum credit that may be claimed by a taxpayer on any
project shall not exceed $1,000,000.

State income tax credits for qualified industries in conjunction with
certain bond financing agreements.
Exemption from Walthall County property taxes on finished goods
through a Free Port Warehouse law - MORE INFO
Customized industrial training programs provided through
Southwest Mississippi Community College
Job Training Partnership Act assistance provided through the
Mississippi Department of Economic and Community Development

ON-THE-JOB TRAINING

On-the-Job Training (OJT) is a program that assists employers in
training new employees. The employee cannot have any prior
experience in the job for which training is developed. Employers
utilizing OJT may be reimbursed up to 50 percent (50%) of the
wage rate of the new employee to cover the cost of training and
supervision. The maximum time that an employer can be
reimbursed is based on the skill level of the job and the content of
the training. To participate an employer must:
Offer a full time job
Have an IRS identification number
Have worker's compensation insurance
Maintain an adequate system of record keeping