Page Title

Incentives for Industry

An existing income tax credit. This credit has been changed
from a dollar per job credit to a percentage of payroll credit. The
credit is now 10% of the payroll of the eligible enterprise
per year for five years provided that 10 or more new full-
time jobs are created; the credit in more populated counties is
5% and a 15 job and 2.5% with a 20 job minimum.
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
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

ADVANTAGE JOBS INCENTIVE PROGRAM

Many companies would likely qualify for another program under
the Advantage Mississippi Initiative, the Advantage Jobs Incentive
Program. If an employer pays 125% of or greater than the
average Walthall County wage* (and, this can include bonuses,
overtime, and salaried personnel), the company will qualify for a
rebate of a percentage of payroll dollars quarterly from the state
tax commission. more

THE GULF OPPORTUNITY ZONE ACT

The Gulf Opportunity Zone Act of 2005 is federal legislation that
was passed by Congress and signed into law by President Bush
in December of 2005. This legislation provides for Federal Tax
Incentives to areas affected by Hurricanes Katrina, Rita, and
Wilma that were designated as warranting individual or public and
individual assistance. more

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