Incentive 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 Jefferson Davis County property taxes on finished goods through a Free Port Warehouse law.
· Customized industrial training programs provided through Pearl River Community College
· Job Training Partnership Act assistance provided through the Mississippi Department of Economic and Community Development
· 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 Jefferson Davis 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
· 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