PROPERTY TAX

​Mississippi’s Aerospace Initiative Incentives program provides corporate tax incentives to companies that manufacture or assemble components for the aerospace industry or provide research, development or training services for the sector and are looking to locate or expand in the state.

Aerospace businesses that locate or expand in Mississippi, create at least 25 full-time jobs paying at least 110% of the state or county average annual salary and make an investment of at least $25 million in the state may receive a sales and use tax exemption and other tax incentives through the Mississippi Aerospace Initiative Incentives Program.

Existing manufacturers that have operated in Mississippi for two or more years may be eligible for investment tax credits that can be applied to the entity’s state income tax liability. To qualify, an existing manufacturer must invest $1,000,000 or more in buildings and/or equipment used in the manufacturing operation. The investment credit is calculated as 5% of the eligible investment for a project.

To encourage construction and expansion within the state, the Mississippi Business Finance Corporation may issue industrial revenue bonds for financing approved projects. Once projects are induced in the bond program, a sales tax exemption is available for all purchase made with bond proceeds.

A full exemption from property taxes may be granted by local governing authorities on personal property that is being held and stored prior to transport to a final destination outside the state. The exemption may be granted for all local property taxes and may be granted for any period of time set by the local governing authority.

While Mississippi boasts energy costs around 20 percent below the national average, the state now exempts energy used in manufacturing from sales tax, further cutting the costs of one of the key drivers companies consider when choosing a location for new investment.

For eligible new businesses or expansion projects in the state that make a capital investment of more than $60 million, local governmental authorities may negotiate a fee that will be paid in place of the calculated
property tax typically due on the property.

Mississippi provides data centers with a sales and use tax exemption for all new and replacement computing equipment and software. Data centers must invest at least $20 million and must create at least 20 new jobs paying 125 percent of the average state wage to qualify for this program.