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MississippiHB 12012025 Regular SessionHouseWALLET

Income tax and ad valorem tax; create incentives for developers to improve tax forfeited, blighted properties in MS.

Sponsored By: Shanda Yates (Independent)

Signed by Governor

Ways and MeansFinance

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Tax breaks for blighted property developers

Mississippi gives developers a tax credit for fixing certified tax-forfeited, blighted property, excluding owners when the property was taxed. The credit equals 25% of certified repair costs incurred after January 1, 2026. Costs must exceed $50,000 for a single-family home or $100,000 for a commercial building. Homes must be purchased by owner-occupants other than the developer; commercial buildings must be sold or leased to non-developer businesses. Developers submit plans and budgets to the Secretary of State and must finish within 36 months of applying. A licensed third party must certify costs, which must fall between 80% and 125% of the approved estimate. The credit cannot exceed income tax owed, but unused amounts carry forward for up to 10 years. Instead, taxpayers can choose a cash rebate worth 75% of the eligible credit, payable within 12 months. Prior credit use limits rebates, and rebates for credits claimed in the certification year must be claimed in a later year. Partnership credits pass through to owners; partnerships and partnership-taxed limited liability companies can choose entity-level rebates, but owners cannot individually rebate excess credits. Combined credit and rebate awards are capped at $2 million yearly and $10 million total, ordered by project completion date. Excess annual demand rolls to the next year. Taxpayers must attach an eligibility certificate to returns claiming the credit. They need that certificate by December 31, 2030, or a written program determination by then followed by a certificate. Benefits are subject to repayment for failing the required use or a new blight declaration within three years after certified completion.

Local tax revenue funds developer payments

Beginning July 1, 2025, Mississippi establishes developer payments tied to increased property values after approved redevelopment of blighted, tax-forfeited property. Homes must be purchased by non-developer owner-occupants; commercial buildings must be sold or leased to non-developer businesses. Assessors record the original assessed value and certify the current value each year. City or county clerks send general-fund property taxes from the increased value to the state in the first use year and the next four years. This temporarily diverts that revenue from local general funds. The money enters a separate state fund, where earnings stay and unused balances carry over. Lawmakers must approve spending before the Secretary of State pays developers. Payments are limited to remitted tax revenue and capped overall at 25% of the approved project budget. Phased projects receive phased transfers and payments; after the transfer period, increased-value taxes return to normal local use. Payments are subject to repayment for failing the required occupancy or a new blight declaration within three years after completion.

Sponsors & Cosponsors

Sponsor

  • Shanda Yates

    Independent • House

Cosponsors

  • Lawrence Blackmon

    Democratic • House

  • Grace Butler-Washington

    Democratic • House

  • Ronnie C. Crudup

    Democratic • House

  • Jill Ford

    Republican • House

  • Stephanie Foster

    Democratic • House

  • Clay Mansell

    Republican • House

  • Jonathan McMillan

    Republican • House

  • Fabian Nelson

    Democratic • House

  • Gene Newman

    Republican • House

  • Brent Powell

    Republican • House

  • Fred Shanks

    Republican • House

  • Lance Varner

    Republican • House

  • Price Wallace

    Republican • House

  • Lee Yancey

    Republican • House

  • Henry Zuber III

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 336 • No: 0

House vote • 3/31/2025

Conference Report Adopted

Yes: 116 • No: 0

Senate vote • 3/31/2025

Conference Report Adopted

Yes: 49 • No: 0 • Other: 1

Senate vote • 3/11/2025

Passed As Amended

Yes: 51 • No: 0

House vote • 1/29/2025

Passed

Yes: 120 • No: 0

Actions Timeline

  1. Approved by Governor

    4/17/2025legislature

  2. Enrolled Bill Signed

    4/3/2025Senate

  3. Enrolled Bill Signed

    4/2/2025House

  4. Conference Report Adopted

    3/31/2025Senate

  5. Conference Report Adopted

    3/31/2025House

  6. Conference Report Filed

    3/28/2025House

  7. Conference Report Filed

    3/28/2025Senate

  8. Conferees Named Harkins,Johnson,Horhn

    3/27/2025Senate

  9. Conferees Named Lamar,Steverson,Barnett

    3/25/2025House

  10. Decline to Concur/Invite Conf

    3/20/2025House

  11. Returned For Concurrence

    3/12/2025Senate

  12. Passed As Amended

    3/11/2025Senate

  13. Amended

    3/11/2025Senate

  14. Title Suff Do Pass As Amended

    3/4/2025Senate

  15. Referred To Finance

    2/17/2025Senate

  16. Transmitted To Senate

    1/30/2025House

  17. Passed

    1/29/2025House

  18. Title Suff Do Pass

    1/28/2025House

  19. Referred To Ways and Means

    1/20/2025House

Bill Text

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