In April 2010, the Mississippi Legislature enacted HB 1701, establishing the Mississippi Clean Energy Initiative. This program provides an incentive for companies that manufacture systems or components used to generate renewable energy, including biomass, solar, wind and hydro generation. Alternative energy manufacturers, including manufacturers of components used in nuclear power plants, are also eligible for this incentive. This program allows the Mississippi Development Authority (MDA) to certify these manufacturers for a tax exemption.
Eligible manufacturers are offered a 10-year exemption from state income and franchise taxes as well as a sales and use tax exemption to establish a plant or expand an existing production facility. To qualify, a clean energy business must have a minimum capital investment of $50,000,000 and create a minimum of 250 new full-time jobs. Additionally, businesses that produce products or provide research for the aerospace industry must have a minimum capital investment of $25,000,000 and must create a minimum of 25 new full-time jobs.
Upon issuance of the certification, the entity shall be exempt from state taxes for a period of 10 years subject to certain performance requirements set out in the agreement. The entity must enter into an agreement with the MDA detailing the performance requirements of the approved business enterprise during the term of the exemption and provisions for recapture of all or a portion of the taxes exempted if the performance requirements are not met. Upon certifying an entity as eligible for the exemptions, the MDA will pass the information to the Department of Revenue so that the exemptions can be implemented.