LOCAL ECONOMIC DEVELOPMENT INCENTIVES
AD VALOREM (PROPERTY TAX) ABATEMENT (PARTIAL)
FOR THE CONSTRUCTION OF A NEW BUILDING OR IMPROVEMENT OF AN EXISTING PROPERTY (BUSINESS OR RESIDENTIAL), THE CITY OF JACKSON WILL EXEMPT THE PROPERTY OWNER FROM TAXES ON THE INCREASED ASSESSED VALUE FOR UP TO SEVEN YEARS. THIS CAN BE USED IN CONJUNCTION WITH OTHER INCENTIVES/CREDITS. FOR MORE INFORMATION VISIT THE CITY OF JACKSON BUSINESS DEVELOPMENT DIVISION.
REHABILITATION OF HISTORIC ASSETS
ANY LANDMARK, LANDMARK SITE, OR PROPERTY LOCATED WITHIN A HISTORIC DISTRICT THAT HAS UNDERGONE APPROVED RESTORATION IS ELIGIBLE FOR PARTIAL TAX ABATEMENT UPON APPROVAL BY THE HISTORIC PRESERVATION COMMISSION AND THE CITY COUNCIL. THE ABATEMENT IS APPLICABLE TO ANY INCREASE IN TAXES THAT OCCURS AS A RESULT OF THE IMPROVEMENT PROJECT. SECTION 70-7 OF THE CITY OF JACKSON ORDINANCES PROVIDES FOR THIS ABATEMENT. THE TAX EXEMPTION OF AD VALOREM TAXES WILL NOT EXCEED A PERIOD OF SEVEN YEARS. FOR MORE INFORMATION VISIT THE CITY OF JACKSON BUSINESS DEVELOPMENT DIVISION.
TAX INCREMENT FINANCING (TIF) BONDS
BOTH THE JACKSON MUNICIPAL AND HINDS COUNTY GOVERNMENTS CAN ISSUE TAX INCREMENT FINANCING BONDS. TIF BONDS ARE BONDS ISSUED BY A MUNICIPAL OR COUNTY GOVERNMENT TO PAY A DEVELOPER OR PROPERTY OWNER FOR INFRASTRUCTURE OUTLAYS MADE AS PART OF A DEVELOPMENT OR RENOVATION. TIF CAN PAY FOR ANYTHING TYPICALLY CONSTRUCTED FOR/PROVIDED BY A CITY, INCLUDING RECREATION/PARKS, PARKING, STREETS, LANDSCAPING, AND INFRASTRUCTURE. FOR MORE INFORMATION VISIT THE CITY OF JACKSON BUSINESS DEVELOPMENT DIVISION.
STATE ECONOMIC DEVELOPMENT INCENTIVES
STATE HISTORIC 25% TAX CREDIT
THE MISSISSIPPI DEPARTMENT OF ARCHIVES AND HISTORY IS RESPONSIBLE FOR THE ADMINISTRATION OF THE PROGRAM, WHICH PROVIDES FOR A STATE INCOME TAX CREDIT EQUAL TO 25% OF THE QUALIFIED EXPENSES OF REHABILITATING HISTORIC STRUCTURES USED FOR RESIDENTIAL OR BUSINESS PURPOSES. THE BUILDING MUST BE LISTED INDIVIDUALLY IN THE NATIONAL REGISTER OF HISTORIC PLACES, BE CERTIFIED AS A CONTRIBUTING PROPERTY IN A NATIONAL REGISTER-LISTED HISTORIC DISTRICT, OR BE DESIGNATED AS A MISSISSIPPI LANDMARK. THE PROJECT’S REHABILITATION EXPENDITURES MUST EXCEED $5,000 OR 50% OF THE TOTAL BASIS OF THE BUILDING. ALL WORK MUST MEET THE SECRETARY OF THE INTERIOR’S STANDARDS FOR REHABILITATION. ONLY REHABILITATION EXPENDITURES INCURRED AFTER JANUARY 1, 2006, QUALIFY. NOT-FOR-PROFIT ENTITIES ARE INELIGIBLE TO RECEIVE THE CREDITS. CLICK HERE FOR MORE INFORMATION, OR CONTACT THE MISSISSIPPI DEPARTMENT OF ARCHIVES AND HISTORY AT 601.576.6912.
SALES AND USE TAX EXEMPTIONS
THE STATE OF MISSISSIPPI OFFERS SEVERAL SALES AND USE TAX EXEMPTIONS FOR QUALIFIED COMPANIES. CONTACT THE MISSISSIPPI DEVELOPMENT AUTHORITY AT 601.353.3449 FOR MORE INFORMATION.
MOTION PICTURE PRODUCTION INCENTIVES AND TOURISM REBATE
THE STATE OF MISSISSIPPI OFFERS INCENTIVES AND REBATES TO ENCOURAGE THE PRODUCTION OF MOTION PICTURES, AS WELL AS THE CREATION OF TOURISM-RELATED PROJECTS, IN THE STATE OF MISSISSIPPI. CONTACT THE MISSISSIPPI DEVELOPMENT AUTHORITY AT 601.359.33449 FOR MORE INFORMATION.
FEDERAL ECONOMIC DEVELOPMENT INCENTIVES
FEDERAL HISTORIC 20% TAX CREDIT
TO BE ELIGIBLE FOR THE 20% REHABILITATION TAX CREDIT, A PROJECT MUST MEET THE FOLLOWING BASIC TAX REQUIREMENTS OF THE INTERNAL REVENUE CODE. THE BUILDING MUST BE DEPRECIABLE – COMMERCIAL OR RENTAL. THE PROPERTY MUST BE PLACED IN SERVICE (I.E., RETURNED TO USE) AND BE A CERTIFIED HISTORIC STRUCTURE. FURTHERMORE, THE OWNER MUST HOLD THE BUILDING FOR FIVE FULL YEARS AFTER COMPLETING THE REHABILITATION, OR PAY BACK THE CREDIT. THE REHABILITATION MUST BE SUBSTANTIAL, WHICH MEANS THAT DURING A 24-MONTH PERIOD SELECTED BY THE TAXPAYER, REHABILITATION EXPENDITURES MUST EXCEED $5,000 OR THE GREATER OF THE ADJUSTED BASIS OF THE BUILDING. CLICK HERE TO LEARN MORE, OR CONTACT THE MISSISSIPPI DEPARTMENT OF ARCHIVES AND HISTORY AT 601.576.6912.
NEW MARKETS TAX CREDITS
THE NEW MARKETS TAX CREDITS (NMTC) PROGRAM ATTRACTS INVESTMENT CAPITAL TO LOW-INCOME COMMUNITIES BY PERMITTING INDIVIDUAL AND CORPORATE INVESTORS TO RECEIVE A TAX CREDIT AGAINST THEIR FEDERAL INCOME TAX RETURN IN EXCHANGE FOR MAKING EQUITY INVESTMENTS IN SPECIALIZED FINANCIAL INSTITUTIONS CALLED COMMUNITY DEVELOPMENT ENTITIES (CDE). THE CREDIT TOTALS 39% OF THE ORIGINAL INVESTMENT AMOUNT AND IS CLAIMED OVER A PERIOD OF SEVEN YEARS (5% FOR EACH OF THE FIRST THREE YEARS, AND THEN 6% FOR THE REMAINING FOUR YEARS). THE INVESTMENT IN THE CDE CANNOT BE REDEEMED BEFORE THE END OF THE SEVEN-YEAR PERIOD.
THE PROGRAM ALLOWS CERTAIN QUALIFIED CDES TO COMPETE FOR A CERTAIN ALLOCATION OF TAX CREDIT AMOUNTS, WHICH FLOW TO INVESTORS WHO MAKE QUALIFIED EQUITY INVESTMENTS (QEI), IN CERTAIN QUALIFIED LOW-INCOME COMMUNITY INVESTMENTS (QLICI), ADMINISTERED BY THE CDES.
HOPE CREDIT UNION ENTERPRISE CORPORATION IS EXTREMELY KNOWLEDGEABLE WITH THESE CREDITS AND WAS INSTRUMENTAL IN STARTING THE PROGRAM IN MISSISSIPPI. FOR MORE INFORMATION, CALL 601.944.4151.
MUNISTRATEGIES HAS IN-DEPTH EXPERIENCE WITH THESE CREDITS. CONTACT ALAN LANGE AT 601.914.5642 FOR MORE INFORMATION.
OPPORTUNITY ZONES
THE TAX CUTS AND JOBS ACT OF 2017 ESTABLISHED OPPORTUNITY ZONES AS A NEW COMMUNITY DEVELOPMENT PROGRAM AIMED AT ENCOURAGING LONG-TERM INVESTMENTS IN LOW-INCOME AND RURAL COMMUNITIES.
PROVIDED UNDER INTERNAL REVENUE CODE (IRC) SECTIONS 1400Z-1 AND 1400Z-2, TAXPAYERS MAY ELECT TO DEFER RECOGNITION OF GAIN REALIZED ON THE SALE TO AN UNRELATED PARTY. THIS REQUIRES A 180-DAY REINVESTMENT OF GAIN DIRECTLY INTO A QUALIFIED OPPORTUNITY (QO) FUND. A QU FUND IS A CORPORATION OR PARTNERSHIP THAT HOLDS AT LEAST 90% OF ITS ASSETS IN QU ZONE PROPERTY. SUBSTANTIAL IMPROVEMENTS MUST BE MADE TO TANGIBLE QU ZONE BUSINESS PROPERTY, UNLESS THE PROPERTY’S ORIGINAL USE IS WITH THE FUND. DEFERRAL ENDS ON THE EARLIER OF THE DATE OF THE NEXT SALE OR DECEMBER 1, 2026. AFTER FIVE YEARS, TAXPAYERS RECEIVE A BASIS STEP-UP EQUAL TO 10% OF THE ORIGINAL GAIN. AFTER SEVEN YEARS, TAXPAYERS RECEIVE AN ADDITIONAL BASIS STEP-UP EQUAL TO 5% OF THE ORIGINAL GAIN. TAXPAYERS ALSO MAY ELECT TO PERMANENTLY EXCLUDE THE GAIN RELATED TO THE APPRECIATION ON THEIR QU FUND INVESTMENT AFTER A 10-YEAR HOLDING PERIOD. CONTACT THE MISSISSIPPI DEVELOPMENT AUTHORITY AT 601.359.3552 FOR MORE INFORMATION.