(1) As used in this section, the following words and phrases have the meanings ascribed in this subsection unless the context clearly requires otherwise:(a) “Blighted” means a property located in Mississippi that is declared by the governing authorities of the municipality or county in which the property is located to be unsafe, due to the physical condition of the property, to an extent that the property is an economic burden on the community that cannot be expected to be reversed absent redevelopment. Blighted property includes, but is not limited to: buildings in which it is unsafe or unhealthy for persons to live or work; conditions that prevent or substantially hinder the viable use or capacity of buildings or lots; and depreciated or stagnant property value.(b) “Eligible property” means property located in Mississippi that is tax forfeited property certified to the state, has been declared as blighted, and will be offered or used for residential or business purposes.(c) “Department” means the Mississippi Department of Revenue.(d) “Developer” means a person, firm, corporation, authority, partnership or other entity who constructs, repairs, renovates, and/or procures the construction, repair or renovation of property such as buildings and other facilities, but who was not the owner of the property when it was sold for taxes.(e) “Secretary” means the Mississippi Secretary of State’s Office.
(a) “Blighted” means a property located in Mississippi that is declared by the governing authorities of the municipality or county in which the property is located to be unsafe, due to the physical condition of the property, to an extent that the property is an economic burden on the community that cannot be expected to be reversed absent redevelopment. Blighted property includes, but is not limited to: buildings in which it is unsafe or unhealthy for persons to live or work; conditions that prevent or substantially hinder the viable use or capacity of buildings or lots; and depreciated or stagnant property value.
(b) “Eligible property” means property located in Mississippi that is tax forfeited property certified to the state, has been declared as blighted, and will be offered or used for residential or business purposes.
(c) “Department” means the Mississippi Department of Revenue.
(d) “Developer” means a person, firm, corporation, authority, partnership or other entity who constructs, repairs, renovates, and/or procures the construction, repair or renovation of property such as buildings and other facilities, but who was not the owner of the property when it was sold for taxes.
(e) “Secretary” means the Mississippi Secretary of State’s Office.
(2) (a) The secretary, in conjunction with the department, shall establish a program to provide tax incentives for developers to develop eligible and blighted property such as buildings and other facilities and to place that developed property into use, either as an owner-occupied dwelling or a commercial building.(b) A developer desiring to participate in the incentive program established under this section must submit an application to the secretary. The application must contain a development plan that provides a description of:(i) The property to be developed that meets the requirements of this program;(ii) Evidence that the property has been declared blighted;(iii) The type of work the developer will perform as part of development of the property and the purpose or purposes for which the property will be placed into use after development;(iv) The budget to perform the development; and(v) Any other information requested by the secretary.(c) A taxpayer incurring costs and expenses for the rehabilitation of eligible property is entitled to a rebate or credit against the taxes imposed pursuant to this chapter in an amount equal to twenty-five percent (25%) of the total costs and expenses of rehabilitation incurred after January 1, 2026, subject to the following conditions being met, as evidenced by documentation submitted by the developer:(i) The costs and expenses associated with rehabilitation exceed:1. Fifty Thousand Dollars ($50,000.00), for an owner-occupied dwelling; or2. One Hundred Thousand Dollars ($100,000.00), for a commercial structure;(ii) The actual expenses incurred in rehabilitating the building site are between eighty percent (80%) and one hundred twenty-five percent (125%) of the initial estimated expenses approved by the secretary;(iii) The project costs were certified by a licensed third party;(iv) The project was completed within thirty-six (36) months of the application submission; and(v) The property was purchased by an owner-occupant who is not the developer, in the case of a single-family dwelling, or sold or leased to a commercial tenant that is not the developer, in the case of a commercial building.(d) The secretary shall issue a certificate evidencing the date of the rebate or credit and amount of eligible rebate or credit if the taxpayer is found to be eligible for the tax rebate or credit. The taxpayer shall attach the certificate to all income tax returns on which the credit is claimed.(e) The department shall award the credit or rebate authorized by this section for any eligible taxpayer after it receives final certification of project completion by the secretary.
(a) The secretary, in conjunction with the department, shall establish a program to provide tax incentives for developers to develop eligible and blighted property such as buildings and other facilities and to place that developed property into use, either as an owner-occupied dwelling or a commercial building.
(b) A developer desiring to participate in the incentive program established under this section must submit an application to the secretary. The application must contain a development plan that provides a description of:(i) The property to be developed that meets the requirements of this program;(ii) Evidence that the property has been declared blighted;(iii) The type of work the developer will perform as part of development of the property and the purpose or purposes for which the property will be placed into use after development;(iv) The budget to perform the development; and(v) Any other information requested by the secretary.
(i) The property to be developed that meets the requirements of this program;
(ii) Evidence that the property has been declared blighted;
(iii) The type of work the developer will perform as part of development of the property and the purpose or purposes for which the property will be placed into use after development;
(iv) The budget to perform the development; and
(v) Any other information requested by the secretary.
(c) A taxpayer incurring costs and expenses for the rehabilitation of eligible property is entitled to a rebate or credit against the taxes imposed pursuant to this chapter in an amount equal to twenty-five percent (25%) of the total costs and expenses of rehabilitation incurred after January 1, 2026, subject to the following conditions being met, as evidenced by documentation submitted by the developer:(i) The costs and expenses associated with rehabilitation exceed:1. Fifty Thousand Dollars ($50,000.00), for an owner-occupied dwelling; or2. One Hundred Thousand Dollars ($100,000.00), for a commercial structure;(ii) The actual expenses incurred in rehabilitating the building site are between eighty percent (80%) and one hundred twenty-five percent (125%) of the initial estimated expenses approved by the secretary;(iii) The project costs were certified by a licensed third party;(iv) The project was completed within thirty-six (36) months of the application submission; and(v) The property was purchased by an owner-occupant who is not the developer, in the case of a single-family dwelling, or sold or leased to a commercial tenant that is not the developer, in the case of a commercial building.
(i) The costs and expenses associated with rehabilitation exceed:1. Fifty Thousand Dollars ($50,000.00), for an owner-occupied dwelling; or2. One Hundred Thousand Dollars ($100,000.00), for a commercial structure;
1. Fifty Thousand Dollars ($50,000.00), for an owner-occupied dwelling; or
2. One Hundred Thousand Dollars ($100,000.00), for a commercial structure;
(ii) The actual expenses incurred in rehabilitating the building site are between eighty percent (80%) and one hundred twenty-five percent (125%) of the initial estimated expenses approved by the secretary;
(iii) The project costs were certified by a licensed third party;
(iv) The project was completed within thirty-six (36) months of the application submission; and
(v) The property was purchased by an owner-occupant who is not the developer, in the case of a single-family dwelling, or sold or leased to a commercial tenant that is not the developer, in the case of a commercial building.
(d) The secretary shall issue a certificate evidencing the date of the rebate or credit and amount of eligible rebate or credit if the taxpayer is found to be eligible for the tax rebate or credit. The taxpayer shall attach the certificate to all income tax returns on which the credit is claimed.
(e) The department shall award the credit or rebate authorized by this section for any eligible taxpayer after it receives final certification of project completion by the secretary.
(3) (a) (i) If the amount of the tax credit established by this section exceeds the total state income tax liability for the credit year, the amount that exceeds the total state income tax liability may be carried forward for the ten (10) succeeding tax years.(ii) In lieu of claiming a tax credit, the taxpayer may elect to claim a rebate in the amount of seventy-five percent (75%) of the amount that would be eligible to claim as a credit. The election may be made at any time after the certification of the rebate. If the taxpayer has utilized a tax credit on an income tax return before making an election to claim a rebate, then the available rebate will be reduced by the amount of credit utilized. If claiming a credit instead of a rebate, the taxpayer shall claim the credit on the income tax return for the tax year for which the credit is certified.(iii) Rebate requests must be submitted to the department on forms prescribed by the department. The department then will provide the taxpayer with a voucher for the approved amount. Within twelve (12) months of the issuance of the voucher by the department, the taxpayer may submit the voucher to the department to receive payment. Rebates shall be made from current tax collections.(b) Credits granted to a partnership, a limited liability company taxed as a partnership or multiple owners of property shall be passed through to the partners, members or owners on a pro rata basis or pursuant to an executed agreement among the partners, members or owners documenting an alternative distribution method. Partners, members or other owners of a pass-through entity are not eligible to elect a refund of excess credit in lieu of a carryforward of the credit. However, a partnership or limited liability company taxed as a partnership may elect to claim a rebate at the entity level on a form prescribed by the department.
(a) (i) If the amount of the tax credit established by this section exceeds the total state income tax liability for the credit year, the amount that exceeds the total state income tax liability may be carried forward for the ten (10) succeeding tax years.(ii) In lieu of claiming a tax credit, the taxpayer may elect to claim a rebate in the amount of seventy-five percent (75%) of the amount that would be eligible to claim as a credit. The election may be made at any time after the certification of the rebate. If the taxpayer has utilized a tax credit on an income tax return before making an election to claim a rebate, then the available rebate will be reduced by the amount of credit utilized. If claiming a credit instead of a rebate, the taxpayer shall claim the credit on the income tax return for the tax year for which the credit is certified.(iii) Rebate requests must be submitted to the department on forms prescribed by the department. The department then will provide the taxpayer with a voucher for the approved amount. Within twelve (12) months of the issuance of the voucher by the department, the taxpayer may submit the voucher to the department to receive payment. Rebates shall be made from current tax collections.
(i) If the amount of the tax credit established by this section exceeds the total state income tax liability for the credit year, the amount that exceeds the total state income tax liability may be carried forward for the ten (10) succeeding tax years.
(ii) In lieu of claiming a tax credit, the taxpayer may elect to claim a rebate in the amount of seventy-five percent (75%) of the amount that would be eligible to claim as a credit. The election may be made at any time after the certification of the rebate. If the taxpayer has utilized a tax credit on an income tax return before making an election to claim a rebate, then the available rebate will be reduced by the amount of credit utilized. If claiming a credit instead of a rebate, the taxpayer shall claim the credit on the income tax return for the tax year for which the credit is certified.
(iii) Rebate requests must be submitted to the department on forms prescribed by the department. The department then will provide the taxpayer with a voucher for the approved amount. Within twelve (12) months of the issuance of the voucher by the department, the taxpayer may submit the voucher to the department to receive payment. Rebates shall be made from current tax collections.
(b) Credits granted to a partnership, a limited liability company taxed as a partnership or multiple owners of property shall be passed through to the partners, members or owners on a pro rata basis or pursuant to an executed agreement among the partners, members or owners documenting an alternative distribution method. Partners, members or other owners of a pass-through entity are not eligible to elect a refund of excess credit in lieu of a carryforward of the credit. However, a partnership or limited liability company taxed as a partnership may elect to claim a rebate at the entity level on a form prescribed by the department.
(4) (a) The maximum aggregate amount of rebates and credits awarded under the program shall not exceed Two Million Dollars ($2,000,000.00) in any one (1) calendar year.(b) The department shall award the rebate or credit based on the date of project completion. However, if the eligible rebate or credit exceeds the available limit in the year in which the project is completed, the rebate or credit shall be awarded in the first calendar year in which the requested rebate or credit would not exceed the calendar year limit.(c) The aggregate amount of tax rebates or credits that may be awarded under this section may not exceed Ten Million Dollars ($10,000,000.00).
(a) The maximum aggregate amount of rebates and credits awarded under the program shall not exceed Two Million Dollars ($2,000,000.00) in any one (1) calendar year.
(b) The department shall award the rebate or credit based on the date of project completion. However, if the eligible rebate or credit exceeds the available limit in the year in which the project is completed, the rebate or credit shall be awarded in the first calendar year in which the requested rebate or credit would not exceed the calendar year limit.
(c) The aggregate amount of tax rebates or credits that may be awarded under this section may not exceed Ten Million Dollars ($10,000,000.00).
(5) (a) The rebate or credit received by a taxpayer pursuant to this section is subject to recapture if:(i) The property is not sold or otherwise put back into productive use with an owner/occupier that is not the developer in the case of a single-family dwelling or sold or leased to a commercial tenant that is not the developer in the case of a commercial building; or(ii) The property is declared blighted by an appropriate governing authority within three (3) years of certification of completion.(b) The taxpayer shall notify the secretary and the department if any of the situations that subject the credit to recapture occur.
(a) The rebate or credit received by a taxpayer pursuant to this section is subject to recapture if:(i) The property is not sold or otherwise put back into productive use with an owner/occupier that is not the developer in the case of a single-family dwelling or sold or leased to a commercial tenant that is not the developer in the case of a commercial building; or(ii) The property is declared blighted by an appropriate governing authority within three (3) years of certification of completion.
(i) The property is not sold or otherwise put back into productive use with an owner/occupier that is not the developer in the case of a single-family dwelling or sold or leased to a commercial tenant that is not the developer in the case of a commercial building; or
(ii) The property is declared blighted by an appropriate governing authority within three (3) years of certification of completion.
(b) The taxpayer shall notify the secretary and the department if any of the situations that subject the credit to recapture occur.
(6) This section applies only to taxpayers:(a) Who have been issued a certificate evidencing the eligible credit before December 31, 2030; or(b) Who, before December 31, 2030, have received a determination in writing from the secretary that it meets the conditions of this program, or will meet the standards if certain specified conditions are met, and who are issued a certificate evidencing the eligible credit on or after December 31, 2030.
(a) Who have been issued a certificate evidencing the eligible credit before December 31, 2030; or
(b) Who, before December 31, 2030, have received a determination in writing from the secretary that it meets the conditions of this program, or will meet the standards if certain specified conditions are met, and who are issued a certificate evidencing the eligible credit on or after December 31, 2030.
(7) The secretary and the department shall have all powers necessary to implement and administer the program established under this section, and the secretary shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section.