Mississippi Administrative Code

In accordance with Miss. Code Ann. Section 21-23-23, excess monies allocated to the Municipal Court Collections Fund may be awarded as grants to participating municipalities as long as the use of the money is consistent with the purpose of the fund. Notes 35 Miss. Code. R. 1-08-3…

The amount of excess funds available in the Municipal Court Collections Fund on July 1 of each fiscal year may be used by the DOR to provide the municipal court collections grants. Notes 35 Miss. Code. R. 1-08-302 Adopted 7/10/2015

Municipal court collections grants will only be made to participating municipalities that will use the monies to provide support for the purposes listed in Section 105 of this regulation. The maximum amount that a city may receive from the fund is equal to the amount of deposits …

The amount of grant funds available will be determined at the end of each fiscal year based on the amount of excess money remaining in the Municipal Court Collections Fund and will be posted on the DOR website. A grant award is neither entitled nor guaranteed. Notes 35 Miss. Code…

In order to receive consideration for a grant from the DOR the participating municipality must submit a proposal between July 1 and August 31 of each year containing the following: 1. The name of the municipality; 2. The name and address of the contact person; 3. The date of requ…

The DOR Grant Review Committee (Grant Committee) will review and either accept or deny the grant proposal based on consistency with these regulations and the availability of funds. A letter response containing the decision will be sent to each municipality that submits a proposal…

Proposals will be evaluated and ranked with preference for approval based on the following factors: 1. Level of need; 2. Supporting or matching funds by government or other grant awards; 3. Previous grant approvals from this fund; 4. The need for additional funding supplemental t…

When funds requested exceed funds available, the ranking factors above may be used to determine which proposals are awarded grant funding. The Grant Committee, in its discretion, may also apportion available funding to applicants in a fair and equitable manner when the factors ab…

The Grant Committee may refuse to approve a grant proposal for any of the following reasons: 1. The proposal is inconsistent with these regulations or with any State law. 2. The participating municipality has failed to provide a complete proposal per Section 305 of these regulati…

Grant award conditions: 1. All grants require compliance with all applicable procurement and purchasing regulations established pursuant to state law. 2. No grant funds should be utilized for costs not identified in the approved grant proposal unless otherwise approved by the DOR…

A quarterly report and a final report upon completion of the project must be submitted to the DOR that includes a description of the progress of the project, expenditures to date and the current balance of the grant. All source documentation should be included with the quarterly …

A report of all distributions and grant approvals for each fiscal year will be made available to the State Auditor's Office. Municipalities awarded grant funds are responsible for maintaining proper documentation to verify that funds were spent only on eligible project costs per …

Grants will be awarded October 1. Any funds not awarded as a grant on November 1 of each prior fiscal year may revert to the DOR. Notes 35 Miss. Code. R. 1-08-313 Adopted 7/10/2015

Notes 35 Miss. Code. R. 1-08-314 Reserved 7/10/2015

Qualifying for and Calculating the Jobs Tax Credit Notes 35 Miss. Code. R. 10-01-100

1. Permanent business enterprises primarily engaged in manufacturing, processing, distribution, wholesaling, research and development and warehousing. 2. Permanent business enterprises designated by rule or regulation of the Mississippi Development Authority as air transportation…

No business enterprise for the transportation, handling, storage, processing or disposal of hazardous waste is eligible to receive this credit. Notes 35 Miss. Code. R. 10-01-102

The jobs tax credit is for each net new full time job created as long as the minimum increase has been achieved and maintained. The credit is allowed each year for 5 years beginning in years 2 through 6 after the creation of the job. The year the jobs are created is year 1. The u…

For the purposes of this credit, the counties in Mississippi are classified as Tier Three (less developed), Tier Two (moderately developed), and Tier One (developed). The counties are evaluated and ranked each year based on the unemployment rate and per capita income of each coun…

This classification is used to determine the minimum number of jobs a business enterprise must create in a given year before it qualifies for the credit. It is also used to determine the amount of credit per job created. The amount of credit per employee and the job levels for ea…

After a taxpayer has qualified for the credit, the credit is not allowed for a year if the net employment increase falls below the minimum required for qualification. The credit is only lost for the year(s) that the taxpayer is below the minimum. A recapture of credit taken in pr…

To determine whether a taxpayer with an existing facility has created the minimum number of jobs to qualify for the credit, the taxpayer must compare the average annual employment level for the previous year with the average annual employment in the current year. If the amount of…

To determine whether a taxpayer with a new facility qualifies for the credit, the average employment for the portion of the year after production was started should be compared with the same period for the previous year. If the increase exceeds the minimum, then the taxpayer woul…

The amount of increase in jobs necessary to qualify for the credit must occur within 1 year. They may not be accumulated over several years. The credit is allowed for net new full time jobs. Part time jobs may not be combined to create full time jobs. Notes 35 Miss. Code. R. 10-0…

If an employer qualified for the credit but then reduced employment levels through layoffs or plant closures, the reduction in employment must continue for a minimum of five (5) years before the employer may use the reduced employment levels in the computation of additional credi…

The sale, merger, acquisition, reorganization, bankruptcy or relocation from one county to another county within the state of any business enterprise may not create new eligibility in the current or any succeeding business entity, but any unused job tax credit may be transferred …

The credit cannot be used by any business enterprise or corporation other than the business enterprise actually qualifying for the credits. Credit received by a partnership, LLC or an S-Corporation may be passed through to offset tax due from the activity that created the credit.…

The total of the Jobs Tax Credit, the Headquarters Credit and the Research & Development Skills Credit is limited to 50% of the Mississippi income tax liability. The credit is not refundable. Notes 35 Miss. Code. R. 10-01-113

The form prescribed by the Commissioner which shows the computation of the credit must be attached to the Mississippi state income tax return. Notes 35 Miss. Code. R. 10-01-114

Certification of the Credit Notes 35 Miss. Code. R. 10-01-200

An application for this credit is not required. However, an application must be submitted to lock in the county classification. Notes 35 Miss. Code. R. 10-01-201

If an employer plans to expand its labor forces in a facility in a Tier Three or Tier Two county, then the employer may complete the certification application and make a request in a letter that the current designation of the county be retained in relationship to the expansion. T…

If there is no construction or expansion of a facility, the expansion in labor forces must take place by the end of the following tax year for the certification and county designation to remain valid. If there is a construction or expansion of a facility, it must begin within one…

Notes 35 Miss. Code. R. 10-01-204 35.X.01 revised effective August 15, 2008

National or Regional Headquarters Tax Credit Notes 35 Miss. Code. R. 10-02-100 Amended 10/13/2016

A credit is available to any company transferring or establishing a national or regional headquarters from within or outside the State of Mississippi and creating a minimum of twenty (20) jobs at the headquarters. A credit is also available to any company expanding or making addi…

The amount of the credit is $500.00 for each net new full time employee for the first five (5) years. The amount of the credit is increased to $1,000.00 provided the employee's salary (excluding benefits not subject to Mississippi income tax) is one hundred twenty-five percent (1…

A full-time employee is an employee who works at least thirty-five (35) hours a week. To be used in the credit computation, the employee must be located in Mississippi and subject to withholding tax. Part-time jobs cannot be combined to add up to a full-time job. Notes 35 Miss. C…

No enterprise in the business of transporting, handling, storing, processing or disposing of hazardous waste is eligible to receive these credits. No regional or national sales office is eligible for these credits. Notes 35 Miss. Code. R. 10-02-104 Amended 10/13/2016

A national headquarters is that office or location of a multi-state business where managerial, professional, technical and administrative personnel are domiciled and employed. It is the location where the centralized functions such as financial, legal, technical and personnel fun…

A regional headquarters is one of several management offices or facilities of a multi-state business that is responsible for planning, directing and controlling all aspects of the business operations within a sub-divided area of the United States. A regional headquarters performs…

Before the credit is granted, the taxpayer must show that the headquarters will have officers and other high level employees with the support staff normally associated with a headquarters. The support staff for the headquarters is also included in the computation of the credit. T…

Companies that transfer full time headquarters employees into the state that are employed in Mississippi for less than twelve (12) months will be allowed a pro-rated portion of the yearly credit in the first and last years. The amount of the credit is pro-rated based on the numbe…

If the number of jobs falls below the twenty (20) required within a year, the credit is lost for that year and cannot be recovered. If the minimum number of jobs is achieved again, the credit is available for the remainder of the original five (5) year period. The original period…

If the salaries that originally qualified for the additional amount of credit fall below the required average annual state wage, the amount of credit must be adjusted for that year and cannot be recovered. But, if the salaries once again meet the criteria, the additional credit i…

The total of the Jobs Tax Credit, the National or Regional Headquarters Credit, the National or Regional Headquarters Relocation Credit and the Research & Development Skills Credit is limited to fifty percent (50%) of the Mississippi Income Tax liability. The unused portions can …

The sale, merger, acquisition, reorganization, bankruptcy or relocation from one county to another county within the state of any business enterprise may not create new eligibility in the current or any succeeding business entity, but any unused credit may be transferred and cont…