ECONOMIC DEVELOPMENT
Taxes & Incentives
Other Taxes
Withholding of Personal Income Tax
Mississippi levies a tax on individual income in the state, assessed at the same rate for individuals as it is for business entities. This tax is a deduction from the employee’s wages, and does not require a contribution from the employer.
State Unemployment Compensation Tax
Mississippi levies an unemployment compensation tax on the first $7,000 of an employee’s annual wages. The maximum contribution rate for employers is 5.4%, and the minimum rate varies from year to year depending upon the general experience rate of the State. The minimum rate is 0.9%. New employers in the state are assigned an initial rate of 2.7% of wages until the Mississippi Department of Employment Security can compute an actual experience rate for the employer.
Worker’s Compensation
Mississippi employers with five or more employees are required to purchase worker’s compensation coverage through an insurance carrier, or they must qualify with the Mississippi Worker’s Compensation Commission as a self-insurer. The compensation is about two-thirds of the claimant’s average weekly wages for up to 450 weeks, not including medical payments. These amounts are indexed on an annual basis.
Incentives for New and Expanding Industry
Incentives are a major factor in Mississippi's reputation as one of the best business climates in the United States. Few other states can match the state's incentives, which include the following important components. Mississippi continues to put programs in place that will help your business do good business. Just for starters, consider the following advantages
Foreign trade zones, safe areas where your company's goods can be landed, stored, processed, and tran-shipped - all without incurring custom duties (import tax). Foreign trade zones can provide customers with manufacturing, assembling, packaging, and display facilities, all free of duties. |
Customized training, developed specifically for your business's needs. Through Holmes Community College, we can find you the right people and train them your way, on your company site, at mobile facilities, or at the HCC campus. It's your choice. |
The right-to-work is assured by Mississippi's Constitution, not just by statute as in most other right-to-work states. So your employees cannot be required to join a union as a condition of their employment. |
Favorable unemployment insurance rates and workers' compensation rates make that bottom line healthier. |
State-sponsored financing programs for land, building, and new equipment. |
Utility companies offer discounts on telephone and electric rates to eligible companies. |
Mississippi's environmental regulations are, in most cases, identical to federal regulations. |
Obtaining environmental permits in Mississippi is made easier by the fact that most permits are issued by the Mississippi Department of Environmental Quality (DEQ) and can be obtained from the office in Jackson. Although not actually defined as one-stop permitting, the process is not complicated. Senior agency management are accessible for thorough, open communication and decision making. The DEQ is the delegated authority to issue almost all federal environmental permits. The Permit Board meets bimonthly. |
Choctaw County has exceptionally clean air and abundant water resources; these environmental conditions make almost every area of the county ideal for greenfield industrial sites. Mississippi is one of the few states that meets all of the national ambient air quality standards for protection of public health and welfare. There are no non attainment areas in the state. |
Other Incentives
Gulf Opportunity
The Gulf Opportunity Zone Act of 2005 is federal legislation that (GO) Zone (link) 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. Choctaw County is included in the Zone for individual and public assistance.
Momentum
The Momentum Mississippi Incentive legislation has two Mississippi (link) components – first, enhancing tax credits existing tax credits and incentives to include high-tech non-manufacturing industries and provide investment incentives to existing Mississippi businesses and second to fund incentive programs through issuance of bonds.
Mississippi Development Authority (MDA) is currently preparing guidelines based on this legislation. The information provided in this summary may change as MDA and other agencies develop guidelines for the new programs and adjust guidelines for existing programs.
Advantage Jobs
Included in Momentum Mississippi, this program provides for a Incentive Program rebate of a percentage of Mississippi payroll to qualified employers for a period of up to 10 years. Available to businesses that promise significant economic development of the economy through the creation of jobs. The average of all jobs included in the program must meet the minimum average wage requirements:
- Data or Information Processing Enterprises that provide an annual wage of 100% of the lesser of the average county or state wage and 100 new jobs
- Manufacturers of Distributors that provide an annual wage of 110% of the lesser of the average county or state wage and 20 new jobs, with an investment by the business of at least $20,000,000 in property, plant and equipment
- Any business except retailers and gaming establishments that provide an annual wage of 125% of the lesser of the average county or state wage and 10 new jobs
- Research and Development Enterprises that provide an annual wage of 150% of the lesser of the average county or state wage and 10 new jobs
- Technology Intensive Enterprises that provide an annual wage of 150% of the lesser of the average county or state wage and 10 new jobs
In addition to the above requirements, eligible businesses must provide a basic health benefits plan and execute a performance agreement with MDA specifying the manner in which the enterprise will utilize the rebate.
Financial Assistance
The Mississippi Development Authority administers several programs which may provide financial assistance for eligible businesses. Because there are numerous programs each with different eligibility criteria, it is recommended that interested parties contact the Choctaw County Economic Development Foundation or the MDA to determine the programs that best fit your individual needs. To provide an idea of the nature of assistance available, following is a list of programs available through MDA for qualifying companies:
Grants |
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Loans |
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The Mississippi Development Authority also provides financial assistance to communities to assist in the expansion or development of industrial projects. For more information contact the Choctaw County Economic Development Foundation or visit www.mississippi.org.
