Development Foundation
 
P.O. Box 145, Belzoni, MS 39038
662-247-4838  fax 662-247-4805 
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"All Things Great About Living in the Mississippi Delta"

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World Catfish Festival, Belzoni, Mississippi

Incentives and Taxes

 

Aside from our great community and tremendous economic environment, consider just a few of the great unique incentives we offer our prospective industry.  We offer Federal Empowerment Zone tax credits, State job tax credits, local tax waivers, Freeport warehouse, right to work state, local incentives and an excellent quality of life for your employees.  Our web site is loaded with reasons to call Belzoni, Mississippi, your industrial or family home.

Federal Tax Credit on Wages 
Employers could receive up reimbursements per employee that live and work in the zone.

Work Opportunity Credit 
Employers could receive reimbursements for employees hired from groups that have high unemployment rates, including youth 18 to 24 that live in the Zone, plus veterans and food stamp recipients.

Commercial Revitalization Deduction 
Would allow businesses that construct or rehabilitate commercial property to deduct a portion of the cost over a shorter period of time.

Increase Section 170 Deduction 
Allows qualified businesses to take a deducation on equipment purchases.

Need more incentives and credits?  E-mail us!

Tax Incentive Programs in Downtown

Tax Rebatement 
Renovations or improvements to existing structures allow owners to receive tax abatement for up to 7 years.

Façade Grants 
Grant available for (%) one-third of the cost of rehabilitation.

Historic Tax Credits
You would receive up to 20% of the rehabilitation cost in federal tax credit.  

Tax Abatement for New Construction and 
Improvements to Existing Buildings

For a three-year (3) abatement, the minimum project investment must be ten thousand five hundred dollars to nineteen thousand nine hundred ninety-nine dollars ($10,500-$19,999).

For a four-year (4) abatement, the minimum project investment must be twenty thousand dollars to forty-four thousand nine hundred ninety-nine dollars ($20,000-$44,999).

For a five-year (5) abatement, the minimum project investment must be forty-five thousand dollars to sixty-four thousand nine hundred ninety-nine dollars ($45,000-$64,999).

For a six-year (6) abatement, the minimum project investment must be sixty-five thousand dollars to eighty-nine thousand nine hundred ninety-nine dollars ($65,000-$89,999).

For a seven-year (7) abatement, the minimum project investment must be ninety thousand dollars ($90,000).

The Humphreys County Board of Supervisors has agreed to the same tax abatement on an individual basis.

Growth And Prosperity Program (GAP)

The Growth and Prosperity Program (GAP) is an incentive program designed to encourage development in economically challenged areas of the state. This program designates  Humphreys County  as a GAP county and provides income, franchise, sales, and property tax incentives to companies that locate or expand in Humphreys County .

To receive a GAP designation, the county must have an unemployment rate that is 200% of the state’s annual unemployment rate, or must have 30% or more of it’s population below the federal poverty rate.

Program Facts

The following businesses that create 10 or more jobs are eligible to participate under the GAP Program:

  • Manufacturing, processing, assembling, storing, warehousing, servicing, distributing or selling of any products or goods, including products of agriculture;

  • Enterprises for research and development, including, but not limited to, scientific laboratories; or

  • Other businesses or industries that will further the public purposes of the GAP Act as determined on a case-by-case basis by MDA, and that create a minimum of ten (10) jobs.

Retail or gaming businesses or electrical generation facilities are not considered eligible business enterprises

Eligible entities that locate or expand in a GAP area receive a series of tax incentives for a period of up to ten years. Taxes that are included in this full exemption are:

Sales and use taxes on all equipment and machinery purchased during the initial construction or expansion at an approved facility. This exemption is valid from the date that the project begins until three months after start-up. This exemption, or the contractors tax.

This exemption applies to the general 7% sales tax on component building materials, equipment, and other assets purchased for the project as well as the 1.5% sales tax on manufacturing machinery. The exemption is available from the beginning of the project until three months after the start-up of the new or expanded facility.

For commercial construction in Mississippi , there is a contractor’s tax assessed on the construction of commercial real property that is calculated as 3.5% of the contractor’s gross receipts from the construction.  Contractor’s tax has no exemptions, and the contractor is allowed to purchase all component building materials exempt from sales tax.

Under this exemption, component building materials can be purchased directly by the GAP business. If these materials are not part of the construction contract, they are not subject to contractor’s tax, and sales tax is not due on materials purchased by the GAP company. To qualify for the exemption, the materials must be purchased by, billed to, and paid for directly by the eligible entity. Contractor’s tax will still apply to the labor portion of the construction contract.

All state income and franchise taxes related to the new location or expansion. In instances where an expansion is approved for companies already subject to Mississippi income and franchise tax, an apportionment formula will be used to determine the percentage of Mississippi income and/or capital that is exempt through GAP. This formula utilizes a property factor and a double weighted payroll factor based on GAP property and payroll divided by the total company property and payroll. Specific calculation guidelines can be obtained from the Mississippi State Tax Commission.

Property taxes levied on land, building, equipment and certain inventory at an approved facility in an approved GAP designated area. This exemption does not include school taxes and that portion of the property tax utilized to pay for fire and police protection. If the company is eligible for a Free Port Warehouse exemption, it must be applied for separately.