Department of Revenue

If the eligible production has physical production or postproduction activities both inside and outside the state, the rebate will only be allowed on a prorated amount of the eligible payroll based on the percentage of activities performed in Mississippi. Source documentation sho…

An individual who is hired through a loan out company or a temporary staffing company will be considered an employee if the loan out company or temporary staffing company is withholding Mississippi tax, otherwise, the individual will be treated as a contract employee. Loan out co…

Payments made to personal service corporations may qualify for the rebate if Mississippi income tax has been withheld and remitted. Notes 35 Miss. Code. R. 10-09-403 Adopted 5/29/2016 Amended 4/1/2018 Amended 6/24/2021

Payroll fees paid to Mississippi payroll companies qualify for the rebate. Notes 35 Miss. Code. R. 10-09-404 Adopted 5/29/2016 Amended 4/1/2018 Amended 6/24/2021

If the payroll and fringes paid for an employee exceeds $5,000,000, then the rebate is only authorized for the first $5,000,000 of the single employee's payroll and fringes. Notes 35 Miss. Code. R. 10-09-405 Adopted 5/29/2016 Amended 4/1/2018 Amended 6/24/2021

The production company may receive an additional 5% of the wages payroll and fringes paid for an employee who is an honorably discharged veteran of the United States Armed Forces upon which Mississippi income tax is due and has been withheld. A copy of Federal Form DD 214 Proof o…

Notes 35 Miss. Code. R. 10-09-407 Reserved 5/29/2016 Reserved 4/1/2018 Amended 6/24/2021

Notes 35 Miss. Code. R. 10-09-500 Adopted 5/29/2016 Amended 4/1/2018 Amended 6/24/2021

To claim the rebate by submitting the request to the MDOR, the motion picture company must submit an electronic Excel spreadsheet upon completion of the project containing a detailed accounting of the base investment and the employee payroll to the MDOR in the proper format. The …

The payroll tab should list residents of Mississippi, including social security numbers, names, addresses, W-2s, a breakdown of the amount of wages paid to and withheld from those individuals, employee benefits and employer fringes. The payroll documentation should include a payr…

All tabs of the spreadsheet must contain links to the PDF files of all source documentation contained in the rebate request. All source documentation must be kept for verification and additional documentation may be requested. The MDOR conducts a line-by-line review of the spread…

Maintain a copy of the USB submission in case a USB is lost or damaged in the mail. In addition, due to the agency's data security policies, any USB received by the Department cannot be returned to its original sender or the representatives of the production company. It is recomm…

When the rebate request is received the MDOR will determine if the submission is in the proper format to perform the review. If the request is not in the proper format, it will be sent back with an explanation containing the formatting requirements that were not met. The rebate r…

After reviewing and approving the rebate request, the MDOR will issue the rebate check to the certified production company. The rebate check is not transferrable. Notes 35 Miss. Code. R. 10-09-506 Reserved 5/29/2016 Reserved 4/1/2018 Amended 6/24/2021

Notes 35 Miss. Code. R. 10-09-507 Adopted 6/24/2021

Notes 35 Miss. Code. R. 10-09-600 Adopted 6/24/2021

The MPPC may also claim the rebate by engaging a CPA. The CPA will need to perform the audit of the MPPC's production expenditures, and such CPA shall verify each base investment, payroll, and fringes expenditure. Notes 35 Miss. Code. R. 10-09-601 Adopted 6/24/2021

Requirements for a CPA engaged to perform a Motion Picture Incentive Submission Audit: 1. Contact the Mississippi Department of Revenue (MDOR) at 601-923-7440 once the audit is agreed to. The MDOR will provide a document containing language to be included in the audit submission.…

The MPPC shall provide the CPA performing the audit with, at a minimum, the following information: 1. A copy of the Motion Picture Incentive Certificate from MDA. 2. A list of all expenditures claimed by line item in electronic format. 3. Payroll expense reports which identify, t…

The CPA shall specifically identify the amount of the base investment, payroll, and fringes expenditures eligible for the rebate. Notes 35 Miss. Code. R. 10-09-604 Adopted 6/24/2021

The CPA performing the audit may not include an expenditure in the rebate amount unless the MPPC has provided a receipt of payment or other evidence that the expenditure has been paid by the MPPC and was expended in Mississippi. Please see the most current Mississippi Tax Incenti…

The CPA must verify that any property or services purchased through a Mississippi vendor that has acquired the property or services from out of state meets the requirements in paragraph 308 of this regulation. Notes 35 Miss. Code. R. 10-09-606 Adopted 6/24/2021

The CPA must include the language in the "Requirements for CPAs Auditing Motion Picture Production Rebate Submissions" instructions when submitting the audit. The language must be on the CPAs letterhead. Notes 35 Miss. Code. R. 10-09-607 Adopted 6/24/2021

The DOR will review the audit using a sample in lieu of a one hundred percent (100%) line item review. Upon receipt of the CPA's audit the DOR will request samples of supporting documentation to be submitted in electronic format if it is not provided. The sample will not exceed t…

The CPA must provide the supporting documentation to the DOR within ten (10) days of the request, or the submission will be denied. Notes 35 Miss. Code. R. 10-09-609 Adopted 6/24/2021

The DOR will apply the rate of misstatement of the exceptions identified in the sample, if any, to the respective populations tested. The rate of misstatement will be calculated by the total value of the exceptions identified, divided by the total dollar value tested, and multipl…

Any adjusted amounts per the sample will be presented to the CPA. Additional information may be provided to the DOR for the transaction in the sample. Keep in mind that the DOR will have thirty (30) days after receipt of the original audit submission by the CPA to approve or deny…

The State of Mississippi shall not be liable for or otherwise responsible for any actions of a qualified accountant. Notes 35 Miss. Code. R. 10-09-612 Adopted 6/24/2021

Notes 35 Miss. Code. R. 10-09-613 Adopted 6/24/2021

General Notes 35 Miss. Code. R. 10-10-100

The SMART (Strengthening Mississippi Academic Research Through) Business rebate is based on an investor incurring qualified research costs subject to a research agreement as defined in Miss. Code Ann. Section 37-148-1 et seq. The amount of the rebate is twenty-five percent (25%) …

The total amount of rebates authorized for an investor will not exceed $1,000,000 in the aggregate and the total amount of rebates authorized in any fiscal year will not exceed $5,000,000 in the aggregate. Notes 35 Miss. Code. R. 10-10-102

In order to receive the rebate, the investor must submit the SMART Business Incentive form as well as proof of payment to college or research corporation, a copy of the SMART Business certificate from IHL, a copy of the research agreement, and any other documentation requested by…

Rebates may not be issued more than once a year to any one investor. Notes 35 Miss. Code. R. 10-10-104

Any research performed prior to certification by IHL will not be considered qualified research costs. Notes 35 Miss. Code. R. 10-10-105

Any research performed outside the state of Mississippi will not be considered qualified research. Notes 35 Miss. Code. R. 10-10-106

Any research funded by any grant, contract or otherwise by another person or governmental entity will not be considered qualified research. Notes 35 Miss. Code. R. 10-10-107

Reserved Notes 35 Miss. Code. R. 10-10-108

Notes 35 Miss. Code. R. 10-11-100 Adopted 10/1/2018

A sales and/or use tax exemption for construction or expansion is available for an eligible business that has obtained bond financing through the Mississippi Business Finance Corporation (MBFC). The type of eligible businesses depends upon the type of bond issued. Notes 35 Miss. …

The Mississippi Development Authority (MDA) and the MBFC determines whether a business qualifies for financing under these programs and the MDOR determines how the exemption is applied. Notes 35 Miss. Code. R. 10-11-102 Adopted 10/1/2018

The bonds that qualify for the exemptions are authorized by 1. Sections 57-10-1 et seq., Miss. Code Ann., and is known by the short title of "Small Business Assistance ". 2. Sections 57-61-1 et seq., Miss. Code Ann., and is known by the short title of the "Mississippi Business In…

All bonds must be issued within eighteen (18) months from the inducement date or an extension must be requested by the business addressed to the MDOR. If bonds do not remain outstanding for at least one (1) year the purchase is not considered to be made with bond proceeds and wou…

Notes 35 Miss. Code. R. 10-11-105 Reserved 10/1/2018

Notes 35 Miss. Code. R. 10-11-200 Adopted 10/1/2018

The Small Business Assistance program is administered by the Mississippi Business Finance Corporation. The sales and use tax exemption is for all purchases, including leases, necessary to establish the enterprise that are made with bond funds. This program consists of two types o…

The Industrial Revenue Development Bonds are issued to for-profit companies and in very limited circumstances, non-profit companies will qualify. Only businesses engaged in manufacturing or processing may qualify for the tax-exempt bonds. The following businesses may qualify for …