Statutory Requirements

Statutory Requirements. State statute provides that Mississippi Flexible Tax Incentive credits be used to offset income, franchise, sales, use, and payroll withholding taxes of the industry or specific identified affiliates. Certified credit amounts can be taken upon certification as a credit on all tax returns filed by the applicant or its identified affiliates after the certification date. A limit of twenty percent (20%) of the total credit awarded may be applied to payroll withholding tax liability per year. Credits may not be used to offset tax liability incurred prior to the certification date. To ensure that the credit awarded is based on the actual investment, job creation, and payroll of the company, the certified applicant will be required to submit annual reports to the MDA that provide the progress of the project to date. Credit amounts may be adjusted based on these reports and an updated credit certificate will be issued to the company as well as the Department of Revenue to validate those credits are commensurate with the actual project results.