Below are descriptions of the incentives that businesses in Madison County benefit from:

Jobs Tax Credits

Note: All Jobs Tax Credits are limited to an amount not greater than 50% of the taxpayer's state income tax liability for that year. Credits require a minimum increase of 20 new, full time employees.

Income Tax Credits

Child Care
Credits equal to 50% of child care expenses. Child care must be provided during employee's working hours. Facility must be licensed by the state and maintain daily enrollment of at least 6 children, ages 12 years or younger.

Basic Skills Training and Retraining
50% credit for expenses related to instructors, materials, equipment and facilities.

Property Tax Exemptions

• Manufacturing
• National or Regional Headquarters transfer creating a minimum of 35 jobs.
• Processing
• Research and Development.
• Warehousing

Property tax exemptions are available for land, buildings, equipment, raw materials and work-in-process. Exemptions are for a period of ten years. No exemption for local school taxes, except for projects of $100 million or more using a fee in lieu of taxes.

Free Port Warehouse

Under Mississippi law, a warehouse, public or private, is eligible to apply for a license to operate as a free port warehouse provided that at least fifty percent of the value of personal property consigned to it is shipped outside the state. Warehouses licensed under this law may be exempt from paying ad valorem taxes on the assessed value of property stored within their premises on January 1 or each year in a ratio equivalent to the value of property shipped to a final destination outside the state during the same year. A request for the exemption must be made to and approved by the local governing authorities. The term of the exemption is set by the authorities at the time of approval, and a renewal of the exemption may be requested at the expiration of the term. Property consigned to a free port warehouse cannot be deprived of exemption because while in the warehouse the property is bound, divided, broken in bulk, labeled, relabeled or repackaged. Manufacturers may take advantage of the Free Port Warehouse Law by electing to operate a warehouse as a business separate and apart from the manufacturing business. The warehouse is permitted to be contiguous to the manufacturing facility, but it must be physically separated from the manufacturing facility by a barrier. Also, bookkeeping and accounting methods must be consistent with the rules and regulations established by the state tax commission.

Sales and Use Tax Exemption

Full exemption is available for companies transferring regional national headquarters from outside the state and creating at least 35 jobs. Purchase of construction materials for a building and/or machinery and equipment is exempt. One-half exemption is available for purchase of building construction materials and machinery, and equipment used therein: and/or purchase of manufacturing and processing equipment permanently attached to the ground or permanent foundation for manufacturing or processing. All purchases must be made by the manufacturer or processor and from a supplier. The usual sales tax is seven percent (7%). However, manufacturing machinery or machine parts when sold to a manufacturer or custom processor for plant use in the manufacture of a commodity for sale, rental, or in processing for a fee, is taxed at the rate of one and one-half percent (1.5%).

Mississippi Free Port Law

For purposes of ad valorem taxation, tangible personal property (including inventories) in transit for a destination within Mississippi is assessed only in the taxing district of its destination. The assessment is based on the average value of the goods for the tax year. Tangible personal property in transit though Mississippi and tangible personal property manufactured, processed, or refined in Mississippi and stored for shipment outside Mississippi acquires no status in Mississippi and is not assessed for ad valorem taxation. Goods moving in interstate commerce may be assembled, bound, joined, processed, disassembled, divided, cut, broken in bulk, re-labeled or repackaged, and still be entitled to an exemption from ad valorem taxation. There is no time limit on how long goods can be stored. The only requirement is that the goods must be destined for out of state shipment.

Example: Ad ValoremTaxes on Manufacturing Property

1. The assessed value is 15% of the appraised value for all taxable property except finished goods. This example assumes that 98% of the finished goods are shipped outside the state and, because of the Free Port Warehouse Law, only 2% of appraised value is subject to the 15% assessment.

2. This example assumes that the levy for school purposes is 30 mills.