Busters Discount Tree Service, Clarksdalle, Mississippi

Business Development Incentives

Clarksdale wants you and your business

The City of Clarksdale has many attractive business development opportunities.

The City of Clarksdale has many attractive business development opportunities.

Clarksdale offers a host of attractive economic and business development opportunities.  These are found in housing, small business, minority business, industry and manufacturing and more. Specifically designed to help new business development, both Clarksdale and the State of Mississippi offer a strong portfolio of economic incentives to attract and encourage new business here. Additionally, there are Federal incentives as well.

The combination of local and State incentives is both significant and expansive.  Included among the array of economic stimulus packages are: renovation and revitalization programs, grants and loans to meet infrastructure needs, workforce training programs, small and minority-owned business assistance programs, statutory tax credits and advantages, and more.

The Mississippi Development Authority offers a wide array of business development incentives.

The Mississippi Development Authority offers a wide array of business development incentives.

Both the City of Clarksdale and the Chamber of Commerce offer specific development opportunities that can include site procurement assistance, construction help or site build-out and remodeling assistance.  Local tax incentives and credits, some combined with Federal participation add even more substance to the new business attraction mix.

From the State, the Mississippi Development Authority (MDA) works closely with prospective businesses and companies to encourage development.  Their Financial Resources Division provides keen, helpful assistance to businesses, consultants, economic development professionals, and others regarding the state’s incentives. (Contact the MDA’s Financial Resources Division at 601.359.3552.)

Coahoma County also offers business development incentives.

Coahoma County also offers business development incentives.

Clarksdale & Coahoma County Tax Incentives & Credits

A number of local tax vehicles had been designed to help business development make sense. Some of these available tax incentives and credits in Clarksdale are:

•  Property Renovation and Revitalization Credits
•  Tax Moritoriums and Freezes
•  Advantage Tax Structures for Industrial Development
•  Historic District Tax Credits (in conjunction w similar Federal credits)
•  New Market Tax Credits (also in Federal conjunction)

Mississippi Tax Incentives & Credits

Mississippi offers a thorough development portfolio for businesses locating or expanding in the state. Among these are Income Tax Incentives, Sales and Use Tax Exemptions, Franchise Tax Incentives, Property Tax Incentives, Advantage Jobs Rebates and more.  Often Clarksdale’s local tax credits and incentives add even more depth to the State development package.  A review of some of the State’s tax incentives follows.

The Mississippi Development Guide, an example of the MDA at work.

The Mississippi Development Guide, an example of the MDA at work (see it here).

Income Tax Exemptions – In Mississippi, corporate income is subject to a state income tax of 5 percent. The state offers a number of income tax incentives for companies creating jobs and making corporate investments. Some of the State Income Tax Exemptions are:

•  Jobs Tax Credit
•  Rural Economic Development Tax Credit
•  Manufacturing Investment Tax Credit
•  Income Tax Exemption for Business in Growth and Prosperity (GAP) Areas
•  Income Tax Exemption for Aerospace Businesses
•  Income Tax Exemption for Clean Energy Businesses
•  National or Regional Headquarters Tax Credits

Sales & Use Tax Exemptions – Personal property sold in Mississippi is taxable, and personal property brought into the State by companies doing business in Mississippi is also taxable. Retail sales are taxed at 7% and manufacturing machinery is taxed at 1.5%.  A tax of 3.5% applies to a contractor’s gross receipts for the construction of commercial properties in Mississippi.  Some of the available State Sales and Use Tax Exemptions are:

•  Sales and Use Tax Exemption for Construction or Expansion
•  Sales and Use Tax Exemption for Bond Financing
•  Sales and Use Tax Exemption for Business in Growth and Prosperity (GAP) Areas
•  Sales and Use Tax Exemption for Headquarters
•  Sales and Use Tax Exemption for Aerospace Businesses
•  Sales and Use Tax Exemption for Clean Energy Businesses
•  Sales and Use Tax Exemption for Data Center Enterprises

The MDA Incentives Report is an annual publication to help business development.

The MDA Incentives Report is an annual publication to help business development (see it here).

Franchise Tax Incentives – Most business in Mississippi is currently subject to a franchise tax based on the company’s capital value. The current franchise tax rate is $2.50 per $1,000 of capital invested in the State.  Some of the available State Franchise Tax Incentives are:

•  Franchise Tax Exemption for Business in Growth and Prosperity (GAP) Areas
•  Franchise Tax Exemption for Aerospace Businesses
•  Franchise Tax Exemption for Clean Energy Businesses

Property Tax Incentives –  Tangible personal property is taxed in Mississippi.  Normally this is levied in combination by a city and county, and the property tax is assessed at 15 percent of true value, which is then calculated by a millage rate to determine a business’s annual tax liability. Each city and/or county sets its millage rates.  Some of the available Property Tax Incentives are:

•  Standard Property Tax Exemptions (up to 10 years)
•  Negotiated Fee in Lieu of Property Tax (up to 20 years)
•  Ad Valorem Exemption for Businesses in Growth and Prosperity (GAP) Areas
•  Free Port Warehouse Exemption

Advantage Jobs Rebate – Many businesses that create new jobs are eligible to receive a cash rebate in Mississippi.  This is normally equal to a percentage of their Mississippi payroll through the Advantage Jobs program, and it is available for up to 10 years.

Other State Tax Incentives – A number of other attractive State tax incentives are:

•  Sales and Use Tax Rebate for Tourism Projects
•  Motion Picture Production Rebate Program

The MDA publishes a quarterly development magazine.

The MDA publishes a quarterly development magazine (see it here).

Economic Development Grants

The State offers a number of grant and loan programs to assist businesses that make capital investments and create jobs. Some of these available grants are:

•  Development Infrastructure Program Grant
•  Economic Development Highway Grant
•  Job Training Grants
•  Job Protection Grants
•  Community Development Black Grant for Economic Development

Business Financing

The State also offers an array of loan programs to assist businesses that make capital investments and create jobs. Some of these available business financing opportunities are:

•  Mississippi Business Finance Corporation Industrial Revenue Bonds
•  Capital Improvement Revolving Loans
•  Existing Industry Productivity Loan Programs
•  Small Business Loan Guaranty Programs
•  Agribusiness Enterprise Loan Programs
•  Small Business and Existing Forestry Industry Loan Programs
•  Minority Business Enterprise Loan Programs
•  Minority Business Micro Loan Programs
•  Capital Access Contract Loan Programs
•  Energy Efficiency Revolving Loan Programs

Mississippi Business Launchpoint, a guide for successful business planning.

Mississippi Business Launchpoint, a guide for successful business planning (see it here).

Small Business Assistance

The State recognizes the vital role small businesses and aspiring entrepreneurs play in both Clarksdale’s and the State’s economy and their importance to our overall future.  Some of the Small Business Assistance programs are:

•  Small Business Loan Guaranty Program
•  Small Business and Existing Forestry Industry Loans
•  Agribusiness Enterprise Loans
•  Minority Business Enterprise Loans
•  Minority Business Micro Loans
•  Capital Access Contract Loans

Minority Business Assistance

The State offers many important programs and services that help minority-owned, women-owned and small business enterprises grow and thrive. Some of the Minority Business Assistance programs are:

•  Minority Business Enterprise Loans
•  Minority Business Micro Loans
•  Capital Access Contract Loans
•  Minority Surety Bond Guaranty Program

Tourism Incentive Programs

Visit Mississippi offers programs including the Mississippi Tourism Rebate Program and the Tourism Marketing Match Grant to promote tourism in Mississippi (contact Visit Mississippi here).

Film & Production Incentives

The State has designed a compelling motion picture production assistance program.  The Mississippi Motion Picture Incentive Program provides cash rebates on eligible film production expenditures and payroll, and provides sales and use tax reductions on eligible production rentals and purchases. This program has widespread availability and applies to nationally distributed motion pictures, television programs, DVDs, documentaries, short films, commercials, video games; and includes animation, interactive media, 3D applications, cinematics, visual effects and motion capture. (The state considers “national distribution” to  include theatrical, broadcast, direct to DVD/video, festival screening, streaming video and internet delivery.)

Community Development

The State offers a variety of grant and loan programs to help Mississippi communities to improve their quality of life. These programs provide funds to cities, counties and other entities to support community development and economic development projects.  The State programs here are designed to encourage future economic development opportunities and to help communities meet important housing needs.

Energy Incentives & Programs

The State is eager to assist in the development of cleaner, more sustainable energy.   A range of options has been designed to help turn clean energy commitments into reality. These include loans, incentives, tax credits and more.

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