Mississippi State Tax Credits

More ways to save your hard-earned money from the tax man!

Mississippi has some great State Tax Credit for you.

Thank you so much for checking our resource out here for your state and congratulations for taking a proactive step to paying less in taxes. For your state, we have identified the tax credits that are currently being offered to help you pay less in state taxes.

We hope this resource is helpful to you, and if there is something you feel we have missed, please let us know!

It would be completely arrogant of us to think that we know all things and if we missed something we want to know so we can vet that and help you and our other friends in the entrepreneurial community pay less in taxes! And if you found this helpful, you should check out our DIY resources inside of our Tax Savings Communities (found at www.MakeTaxesFair.com/Our-Communities).

We're also ready to help you if you want to skip the line of the DIY process and get help directly from us. To learn more about how we help our clients check out www.MakeTaxesFair.com/Get-My-Roadmap
Mississippi

Mississippi Jobs Tax Credit

Overview:
The Mississippi Jobs Tax Credit incentivizes businesses to create full-time jobs by offering income tax credits based on payroll costs. The credit applies for five years starting in the second year after job creation and varies by county development tier—offering higher credits for areas with greater economic need.

Who It’s For:
Mississippi-based manufacturers, distributors, R&D facilities, and other eligible employers creating new full-time jobs—especially those operating in less developed counties or economically distressed areas.

Four Key Highlights:

  1. Tiered Credit Based on Location

    • 2.5% in Tier 1 (20-job minimum), 5% in Tier 2 (15-job minimum), 10% in Tier 3 (10-job minimum).

  2. Five-Year Tax Relief on Payroll Growth

    • Credits begin in Year 2 and continue through Year 6 for qualifying new jobs.

  3. Credit Limitations & Carryforward

    • Combined tax credits cannot exceed 50% of income tax liability; unused credits carry forward up to 5 years.

  4. Special Boost for Distressed Communities

    • 10% payroll credit for businesses in high-poverty, high-unemployment areas with just 10 new jobs required.

check it out now

Mississippi National or Regional Headquarters Tax Credit & Relocation Tax Credit

Overview:
Mississippi offers two tax credits to incentivize the creation, expansion, or relocation of national or regional headquarters in the state. Employers can receive up to $2,000 per high-paying full-time job and reimbursement for actual relocation costs when establishing a qualifying headquarters operation with at least 20 new jobs.

Who It’s For:
Businesses planning to establish, relocate, or expand national or regional headquarters in Mississippi and create a minimum of 20 new full-time, high-wage jobs.

Four Key Highlights:

  1. Job-Based Credit Tiers Reward High Salaries

    • $500–$2,000 per new full-time job based on salary thresholds (125% or 200% of state average wage).

  2. Relocation Costs Covered Up to $1M Statewide

    • Additional credit available to cover actual relocation expenses for out-of-state headquarters moves.

  3. Must Create & Maintain 20 Jobs for 5 Years

    • Jobs must be full-time, filled within one year, and maintained to retain the credit.

  4. Carryforward & Limitations

    • Credits offset up to 50% of income tax liability and can be carried forward for 5 years (or 7 if disaster-declared).

CHECK IT OUT NOW

Mississippi Basic Skill Training or Retraining Tax Credit

Overview:
This Mississippi tax credit allows qualifying businesses to claim a 50% income tax credit on approved training or retraining expenses—up to $2,500 per employee over three years. It supports workforce development through basic skills improvement and retraining for job retention or advancement.

Who It’s For:
Mississippi-based manufacturers, processors, distributors, and other eligible enterprises offering certified workforce training or retraining programs through community or junior colleges.

Four Key Highlights:

  1. 50% Credit on Qualified Training Costs

    • Covers costs for instructors, training materials, equipment, and facilities tied to certified programs.

  2. Employee Cap: $2,500 Over Three Years

    • Maximum benefit per employee across a three-year period, encouraging long-term skill development.

  3. Non-Refundable But Flexible

    • Cannot exceed 50% of income tax liability, but unused credits can be carried forward for up to 5 years.

  4. Must Be Certified by College & MDOR

    • Program requires dual certification from a local community or junior college and the Mississippi Department of Revenue.

CHECK IT OUT NOW

Mississippi Rural Economic Development (RED) Bond Tax Credit

Overview:
The Mississippi RED Bond Tax Credit allows businesses that use Industrial Revenue Bonds from the Mississippi Business Finance Corporation (MBFC) to claim a credit equal to their bond debt service payments—up to 80% of their state income tax liability. This credit supports job creation and capital investment in rural economic development projects.

Who It’s For:
Mississippi-based manufacturers, tech firms, distributors, and warehouse operators that finance qualifying projects through MBFC-issued Industrial Revenue Bonds.

Four Key Highlights:

  1. Covers Bond Debt Service Payments

    • Businesses can claim a credit equal to 100% of bond debt service costs, capped at 80% of their Mississippi income tax liability.

  2. Targeted to Economic Development Projects

    • Must involve manufacturing, telecommunications, data processing, distribution, or warehousing within Mississippi.

  3. Carryforward Flexibility

    • Unused credits may be carried forward for up to 3 years, helping manage fluctuating tax liabilities over time.

  4. Non-Refundable & Requires Certification

    • Credit applies only to MBFC bondholders and must be certified by the Mississippi Department of Revenue via the Taxpayer Access Point (TAP).

 

check it out now

Mississippi Equity Investment (New Markets) Tax Credit

Overview:
The Mississippi Equity Investment Tax Credit supports private investment in low-income communities by offering a 24% tax credit over three years for Qualified Equity Investments (QEIs) made through certified Community Development Entities (CDEs). This program complements the federal New Markets Tax Credit and targets economic development in underserved Mississippi areas.

Who It’s For:
Taxpayers—including individuals, corporations, and insurance companies—who invest in certified CDEs that deploy funds in Mississippi’s low-income communities.

Four Key Highlights:

  1. 24% Credit Over 3 Years

    • Investors earn 8% of their QEI annually for three years on approved Credit Allowance Dates.

  2. Applies to Multiple Tax Types

    • Can be used against Mississippi income tax, insurance premium tax, or premium retaliatory tax.

  3. Strict 7-Year Investment Period

    • The credit is subject to recapture if the QEI is redeemed or federal NMTC standards are violated within seven years.

  4. Carryforward Flexibility

    • Unused credits can be carried forward for up to seven years beyond the final Credit Allowance Date but cannot be transferred or refunded.

CHECK IT OUT NOW

Mississippi Employer-Provided Dependent Care Tax Credit

Overview:
This Mississippi tax credit allows businesses to claim 50% of eligible expenses for providing certified dependent care to employees during working hours. The credit applies to both child and adult dependent care, is non-refundable, and can be carried forward for up to five years.

Who It’s For:
Mississippi-based businesses that directly provide or contract certified dependent care services for their employees—either on-site, community-based, or through third-party facilities.

Four Key Highlights:

  1. 50% Credit for Certified Dependent Care Costs

    • Covers employer-paid expenses for care facilities, staff, materials, or third-party contracts, including child and elder care.

  2. Wide Range of Qualifying Facilities

    • Includes care centers for children under 12, teens with special needs, and elder care—must be certified by MDH or MDOR.

  3. Offsets Full Income Tax Liability

    • Can reduce a business’s income tax liability to zero, but the credit is non-refundable.

  4. 5-Year Carryforward Allowed

    • Unused credits can be applied to future tax years, up to five years.

Check it out now

Mississippi Eligible Charitable Business Contribution Tax Credit

Overview:
This tax credit rewards businesses for making voluntary cash donations to approved Mississippi-based charities (ECOs or ESCOs). It can offset up to 50% of a company’s income, insurance premium, or property tax liability, with unused credit carrying forward for five years.

Who It’s For:
Mississippi businesses—including corporations, LLCs, partnerships, and sole proprietors—interested in supporting certified child welfare or educational charities while reducing their tax burden.

Four Key Highlights:

  1. 50% Credit on Qualified Charitable Contributions

    • Applies to eligible cash donations to certified ECOs or ESCOs; credit capped at 50% of tax liability per year.

  2. Flexible Tax Applications

    • Can be used against income tax, insurance premium tax, or property tax (for non-corporate taxpayers).

  3. Pre-Approval & Documentation Required

    • Application via TAP portal is mandatory before contributing; proof of contribution must be submitted within 60 days.

  4. Five-Year Carryforward Available

    • Any unused portion of the credit can be carried forward for up to five years but is non-refundable and non-transferable.

 

CHECK IT OUT NOW