SB 2159 — Mississippi Flexible Tax Incentive Act; create.

(ii) That offers a minimum of one thousand eight hundred twenty (1,820) hours of an employee's time per year (i.e., thirty-five (35) hours per week on average) for a normal four (4) consecutive quarter period of the qualified business or industry's operations or a job for which the employee is hired after the project certification date and is compensated based on one thousand eight hundred twenty (1,820) hours for such annual period (including in each case an employee who, after hiring, elects to S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 78 (ii) That offers a minimum of one thousand eight hundred twenty (1,820) hours of an employee's time per year (i.e., thirty-five (35) hours per week on average) for a normal four (4) consecutive quarter period of the qualified business or industry's operations or a job for which the employee is hired after the project certification date and is compensated based on one thousand eight hundred twenty (1,820) hours for such annual period (including in each case an employee who, after hiring, elects to take unpaid time off or is on short-term or long-term disability);

in the business of leasing employees, and 2.

S.(iii) Who performs services for the qualified business or industry pursuant to a leasing agreement between the qualified business or industry and such other employee-leasing firm;

(iv) Whose job-performing services for the qualified business or industry offers a minimum of one thousand eight hundred twenty (1,820) hours of an employee's time per year (i.e., thirty-five (35) hours per week on average) for an entire normal work year of the qualified business or industry's S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 89 (iii)operations Whoor performsa servicesjob for which the qualifiedemployee businessis orleased industryafter pursuantthe toproject acertification leasingdate agreementand betweenis thecompensated qualifiedbased businesson orone industrythousand andeight hundred twenty (1,820) hours for such otherannual period (including in each case an employee leasingwho, firm;after being leased, elects to take unpaid time off or is on short-term or long-term disability);

(iv) Whose job-performing services for the qualified business or industry offers a minimum of one thousand eight hundred twenty (1,820) hours of an employee's time per year (i.e., thirty-five (35) hours per week on average) for an entire normal work year of the qualified business or industry's operations or a job for which the employee is leased after the project certification date and is compensated based on one thousand eight hundred twenty (1,820) hours for such annual period (including in each case an employee who, after being leased, elects to take unpaid time off or is on short-term or long-term disability);

(s) "Nonmanufacturing equipment" means all tangible personal property that is not manufacturing machinery, including, but not limited to, office furniture, fixtures, office computers S.and communications equipment, and warehouse equipment such as racking and shelving.

(t) "Part-time job" means a job (i) for which an employee is hired by the qualified business or industry that requires fewer than one thousand eight hundred twenty (1,820) hours of an employee's time per year (i.e., requires fewer than thirty-five (35) hours per week on average) for an entire normal work year of the qualified business or industry's operations or a job for which the employee is hired and is compensated based on S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 910 andfewer communicationsthan equipment,one andthousand warehouseeight equipmenthundred suchtwenty as(1,820) rackinghours andfor shelving.such annual period;

(t) "Part-time job" means a job (i) for which an employee is hired by the qualified business or industry that requires fewer than one thousand eight hundred twenty (1,820) hours of an employee's time per year (i.e., requires fewer than thirty-five (35) hours per week on average) for an entire normal work year of the qualified business or industry's operations or a job for which the employee is hired and is compensated based on fewer than one thousand eight hundred twenty (1,820) hours for such annual period;

S.(w) "Qualified business or industry" means any corporation, limited liability company, partnership, person or sole proprietorship, business trust or other legal entity and subunit or affiliate thereof, which makes a qualified minimum investment in a qualified economic development project.

(x) "Qualified economic development project" or "qualified project" means the location in the state of one or more of the following enumerated enterprises for which a corporation, limited liability company, partnership, sole proprietorship, business trust or other legal entity, or subunit or affiliate S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 1011 (w)thereof, "Qualifiedmakes business or industry"causes meansto anybe corporation,made limitedfrom liabilitythe company,minimum partnership,qualified personinvestment orand/or solesatisfies proprietorship, business trust or othercauses legalto entitybe andsatisfied subunitthe or affiliate thereof, which makes a qualified minimum investmentjob increation arequirement: qualified economic development project.

(x) "Qualified economic development project" or "qualified project" means the location in the state of one or more of the following enumerated enterprises for which a corporation, limited liability company, partnership, sole proprietorship, business trust or other legal entity, or subunit or affiliate thereof, makes or causes to be made from the minimum qualified investment and/or satisfies or causes to be satisfied the minimum job creation requirement:

S.(iii) A new research or research and development enterprise or an expansion of an existing research or research and development enterprise;

B.

No.

2159 *SS26/R336CS* ~ OFFICIAL ~ 22/SS26/R336CS PAGE 11 (iii) A new research or research and development enterprise or an expansion of an existing research or research and development enterprise;

provided that, in any such instance, such regional or nationalS. headquarters or expansion thereof is certified by the authority to qualify as such;

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 12 national headquarters or expansion thereof is certified by the authority to qualify as such;

S.(vii) A new data/information processing enterprise or an expansion of an existing new data/information processing enterprise;

B.

No.

2159 *SS26/R336CS* ~ OFFICIAL ~ 22/SS26/R336CS PAGE 12 (vii) A new data/information processing enterprise or an expansion of an existing new data/information processing enterprise;

provided that, in either instance, the technology intensive enterprise or expansion thereof is certified by the authority to qualify as such;S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 13 such;

provided further, that commercial broadcast radio stations, television stations or news S.organizations primarily serving in-state markets shall not be included within the definition of the term "telecommunications enterprise";

B.

No.

2159 *SS26/R336CS* ~ OFFICIAL ~ 22/SS26/R336CS PAGE 13 organizations primarily serving in-state markets shall not be included within the definition of the term "telecommunications enterprise";

provided that, in such instance, anyS. such data center enterprise or expansion thereof is certified by the authority to qualify as such.

(y) "Qualified investment" means any expenditures made or caused to be made by the qualified business or industry following the project certification date for construction, installation, equipping and operation of a qualified economic development project from any source or combination of sources, excluding any funds contributed by the state or any agency or other political subdivision thereof, or by any local government or any agency or other political subdivision thereof, to the extent such expenditures can be capitalized under applicable accounting rules or otherwise by the Internal Revenue Code, whether or not the qualified business or industry elects to capitalize the same, as reflected in its financial statements, including, but not limited to, all costs associated with the acquisition, installation and/or construction of, or capital leasehold interest in, any buildings and other real property improvements, fixtures, S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 14 equipment,any machinery,such landscaping,data firecenter protection,enterprise depreciableor fixedexpansion assets,thereof engineeringis andcertified designby costs.the authority to qualify as such.

(y) "Qualified investment" means any expenditures made or caused to be made by the qualified business or industry following the project certification date for construction, installation, equipping and operation of a qualified economic development project from any source or combination of sources, excluding any funds contributed by the state or any agency or other political subdivision thereof, or by any local government or any agency or other political subdivision thereof, to the extent such expenditures can be capitalized under applicable accounting rules or otherwise by the Internal Revenue Code, whether or not the qualified business or industry elects to capitalize the same, as reflected in its financial statements, including, but not limited to, all costs associated with the acquisition, installation and/or construction of, or capital leasehold interest in, any buildings and other real property improvements, fixtures, equipment, machinery, landscaping, fire protection, depreciable fixed assets, engineering and design costs.

(bb)S. "State tax" means:

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 15 (bb) "State tax" means:

Business or industrial enterprises wishing to apply for the mFlex tax incentive authorized by Sections 1 through 10 of this act shall make application to the authority, on a form prescribed S.thereby;

provided that the application shall, at a minimum, contain:

(a) A brief overview of the applicant's business or industry, including its formation type (e.g., corporation, limited liability company, limited partnership, etc.), its date of incorporation or formation thereof, and the location of its principal headquarters, together with its principal place of S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 1516 thereby;business in the state, if the applicant already has one or more facilities located in the state;

provided that the application shall, at a minimum, contain:

(a) A brief overview of the applicant's business or industry, including its formation type (e.g., corporation, limited liability company, limited partnership, etc.), its date of incorporation or formation thereof, and the location of its principal headquarters, together with its principal place of business in the state, if the applicant already has one or more facilities located in the state;

(h) A description of benefits, including but not limited to, health, dental and/or vision insurance, retirement savings account, etc.

made available to employees, as well as a description of any employees to whom such benefits are not made available (e.g., part-time employees);

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 1617 (h)(i) AThe descriptionlength of benefits,time includingnecessary butfor notthe limitedapplicant to,to health,meet dentalits and/orqualified visioninvestment insurance,and retirementnew savingsfull-time account,job etc.creation projections;

made available to employees, as well as a description of any employees to whom such benefits are not made available (e.g., part-time employees);

(i) The length of time necessary for the applicant to meet its qualified investment and new full-time job creation projections;

(k) An acknowledgment that the applicant, if awarded an mFlex tax incentivesincentive pursuant to Sections 1 through 10 of this act, will be required to provide the annual report prescribed by Section 7 of this act to demonstrate the actual amount of its qualified investment, including actual expenditures on manufacturing machinery, nonmanufacturing equipment and component building materials, and the number of new full-time jobs created and maintained as a result of the project;

S.SECTION 4.

B.

No.

2159 *SS26/R336CS* ~ OFFICIAL ~ 22/SS26/R336CS PAGE 17 SECTION 4.

(1) The authority shall evaluate an application to determine whether the applicant's proposed project is a qualified economic development project and whetherS. it is therefore eligible for an award by the authority of an mFlex tax incentive, as calculated in accordance with Section 5 of this act.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 18 whether it is therefore eligible for an award by the authority of an mFlex tax incentive, as calculated in accordance with Section 5 of this act.

(3) Upon the issuance of the certification and execution of the mFlex agreement by a qualified business or industry and the authority, the qualified business or industry may apply the amount of its mFlex tax incentive as a credit to offset (a) any state taxes (except for withholding tax required to be deducted and withheld from employee wages pursuant to Section 27-7-301 et seq.), as incurred thereby, up to the full amount of the mFlex tax S.incentive awarded by the authority for the associated qualified economic development project, and (b) only up to twenty percent (20%) of the mFlex tax incentive amount may be applied as a credit during the course of any reporting year to offset withholding tax deducted and withheld from employee wages pursuant to Section 27-7-301 et seq.;

provided that the amount of the mFlex tax S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 1819 incentive awardedavailable byto thebe authorityapplied foras thea associatedcredit qualifiedto economicoffset developmentsuch project,state andtaxes (b)shall onlybe upsubject to twentyany percentsubsequent (20%)adjustments ofmade theby mFlex tax incentive amount may be applied as a credit during the courseauthority ofto anysuch reportingaward yearpursuant to offsetSection withholding7 taxof deductedthis act, and withheldany fromperformance employeerequirements wagesset pursuantout toin Sectionthe 27-7-301mFlex etagreement. seq.;

provided that the amount of the mFlex tax incentive available to be applied as a credit to offset such state taxes shall be subject to (a) any subsequent adjustments made by the authority to such award pursuant to Section 7 of this act, and (b) any performance requirements set out in the mFlex agreement.

(a) Any certification and mFlex tax incentive award issued by the authority under Sections 1 through 10 of this act is nontransferable and cannot be applied, used or assigned to any other person or business or tax account without prior approval by the authority, except for one or more affiliates of the qualified business or industry disclosed thereby on its application or in a S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 1920 (a) Any certification and mFlex tax incentive award issued by the authority under Sections 1 through 10 of this act is nontransferable and cannot be applied, used or assigned to any other person or business or tax account without prior approval by the authority, except for one or more affiliates of the qualified business or industry disclosed thereby on its application or in a subsequent annual report submitted to the authority in accordance with Sections 1 through 10 of this act;

and (c) Each qualified business or industry must enter into an mFlex agreement with the authority which sets out, at a minimum, (i) the obligation of the business or industry to provide an annual report to the authority pursuant to Section 7 of this act that demonstrates the actual amount of its qualified investment, including actual expenditures on manufacturing machinery, nonmanufacturing equipment and component building materials, the number of new full-time jobs created and maintained as a result of the project, and any other relevant information as may be required by the authority;

and (ii) terms for readjustment or recapture of all or a portion of the mFlex tax incentive awarded thereto S.pursuant to Section 7 of this act if the applicant 1.

fails to satisfy the minimum job creation requirement if certification of the project is predicated on satisfaction of the minimum job creation requirement and not the minimum qualified investment, or 2.

fails to satisfy the minimum qualified investment if certification of the project is predicated on S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 2021 pursuantsatisfaction toof Sectionthe 7minimum ofjob thiscreation actrequirement ifand not the applicantminimum 1.qualified investment, and/or 3.

fails to satisfy the minimum job creation requirement if certification of the project is predicated on satisfaction of the minimum job creation requirement and not the minimum qualified investment, or 2.

fails to satisfy the minimum qualified investment if certification of the project is predicated on satisfaction of the minimum job creation requirement and not the minimum qualified investment, and/or 3.

(6) Upon certifying a qualified business or industry as eligible for, and awarding, an mFlex tax incentive under Sections 1 through 10 of this act, the authority shall forward the certification along with any other necessary information to the Department of Revenue so that the mFlex tax incentive awarded to the qualified business or industry can be recorded by the S.Department of Revenue and used to verify each state tax credit subsequently applied by the qualified business or industry.

(7) Within thirty (30) days following the end of each calendar quarter, the authority shall provide to the Governor, Lieutenant Governor and the Speaker of the House of Representatives a copy of each certification made, together with a S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 2122 Departmentcopy of Revenue and used to verify each statemFlex taxagreement creditapproved subsequentlyand appliedexecuted, byduring the qualifiedimmediately businesspreceding orcalendar industry.quarter.

(7) Within thirty (30) days following the end of each calendar quarter, the authority shall provide to the Governor, Lieutenant Governor and the Speaker of the House of Representatives a copy of each certification made, together with a copy of each mFlex agreement approved and executed, during the immediately preceding calendar quarter.

(a) OneSubject to paragraph (f) below, one and one-half percent (1.5%) of the total purchase or sales price, or value, including any installation costs thereof, as applicable, of all manufacturing or processing machinery acquired, leased or otherwise moved into the state following the project certification date to establish and equip the qualified economic development project;

plus (b) SevenSubject to paragraph (f) below, seven percent (7%) of the total purchase or sales price, or value, including any installation costs thereof, as applicable, of all nonmanufacturing equipment, other than tagged over-the-road vehicles, acquired, leased or otherwise moved into the state following the project certification date to establish and equip the qualified economic development project;

plus (c) Subject to paragraph (f) below, two percent (2%) of the total contract price or compensation paid to any contractor pursuant to any construction contract entered into following the project certification date by the qualified business or industry or any affiliate thereof, to construct, build, erect, repair or S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 2223 (c) Two percent (2%) of the total contract price or compensation paid to any contractor pursuant to any construction contract entered into following the project certification date by the qualified business or industry or any affiliate thereof, to construct, build, erect, repair or add to any building, facility, structure or other improvement to real property described in Section 27-65-21(1)(a)(i) to establish and construct the qualified economic development project;

plus, if applicable,applicable; (d) To the extent that the average employer wage is equal to or more than seventy-five percent (75%) of the average state or county wage, then an additional fifteen percent (15%) of the product derived by multiplying the average employer wage by the number of new full-time jobs;

plus,(d) ifTo applicable,the (e)extent (i)that Tothe average employer wage is equal to or more than seventy-five percent (75%) of the extentaverage thatstate 1.or county wage, then an additional fifteen percent (15%) of the product derived by multiplying the average employer wage by the number of new full-time jobs;

plus, if applicable;

(e) (i) To the extent that 1.

all full-time employees are eligible for and offered health insurance coverage funded in whole or at least fifty percent (50%) by the qualified business or industry (or by a leasing company with respect to leased employees), then an additional thirty percent (30%) of the product S.derived by multiplying the average employer wage by the number of new full-time jobs;

B.

No.

2159 *SS26/R336CS* ~ OFFICIAL ~ 22/SS26/R336CS PAGE 23 derived by multiplying the average employer wage by the number of new full-time jobs;

the average employer wage isS. equal to or more than one hundred twenty-five percent (125%) of the average state or county wage;

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 24 is equal to or more than one hundred twenty-five percent (125%) of the average state or county wage;

provided, further, that such initial award amount shall be subject to any subsequent adjustments made by the authority pursuant to Section 7 of this act.act;

SECTION(f) 6.To the extent that all or any portion of the purchases to establish a qualified economic development project which are financed by proceeds from bonds issued pursuant to Section 57-10-201 et seq.

Exclusiveor utilizationSection of57-10-401 et seq., the mFlex tax incentive.incentive determined in accordance with this section shall exclude the amount calculated in accordance with paragraphs (a), (b) and (c) above;

Aprovided qualifiedthat, businessthis orparagraph industry(f) awardedshall anynot mFlexapply taxin incentivedetermining by the authoritymFlex fortax itsincentive qualifiedfor economica developmentqualified project S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 2425 pursuanteconomic development project to Sectionsthe 1extent throughthat 10(i) ofthe thisqualified acteconomic shalldevelopment notproject beis eligiblean for,expansion norof shallan itexisting applyproject, for(ii) all or claim, any oneportion orof morethe ofpurchases to establish the followingexisting taxproject credits,were exemptionsfinanced orby incentivesproceeds forfrom suchbonds qualifiedissued project:pursuant to Section 57-10-201 et seq.

or Section 57-10-401 et seq., and (iii) no purchases to establish the expansion constituting a qualified economic development project are financed by proceeds from bonds issued pursuant to Section 57-10-201 et seq.

or Section 57-10-401 et seq.

SECTION 6.

Exclusive utilization of mFlex tax incentive.

(1) A qualified business or industry awarded any mFlex tax incentive by the authority for its qualified economic development project pursuant to Sections 1 through 10 of this act shall not be eligible for, nor shall it apply for or claim, any one or more of the following tax credits, exemptions or incentives for such qualified project:

(c) Any exemption from state income tax authorized by Section 27-7-30, Sections 57-80-1 through 57-80-11, Sections 57-113-1S. through 57-113-7, and Sections 57-113-21 through 57-11327;

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 26 57-113-1 through 57-113-7, and Sections 57-113-21 through 57-11327;

Sections 57-10-255(2) and 57-10-439(2);

(f) Any exemption from state franchise tax authorized by Section 27-13-5(4), Section 27-13-7(4), Sections 57-80-1 S.through 57-80-11, Sections 57-113-1 through 57-113-7, and Sections 57-113-21 through 57-113-27.

(2) Notwithstanding subsection (1) of this section, a qualified business or industry shall not be prohibited from applying for or receiving any of the tax credits, exemptions or incentives described in paragraphs (a) through (f) of subsection (1) of this section for any project or expansion which is not certified by the authority as a qualified economic development project and for which no mFlex tax incentive is awarded by the authority, notwithstanding the fact the qualified business or industry is awarded an mFlex tax incentive by the authority for a specific qualified economic development project undertaken thereby.

S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 2527 throughSECTION 57-80-11,7. Sections 57-113-1 through 57-113-7, and Sections 57-113-21 through 57-113-27.

SECTION 7.

Each annual report shall include the information set forth in this section, together with any other information required to be provided by the qualified business or industry pursuant to its mFlex agreement, for the immediately preceding twelve-month period ending on the last day S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 2628 immediately preceding twelve-month period ending on the last day of the month during which the annual anniversary of its project certification date occurred.

(f) The average employer wage for the reporting year;

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 2729 (f)(g) The averagepercentage employerand wagenumber, foras of the last day of the reporting year;year, of new full-time employees who are eligible for and offered a health insurance coverage funded in whole or at least fifty percent (50%) by the qualified business or industry (or by a leasing company with respect to leased employees);

(g) The percentage and number, as of the last day of the reporting year, of new full-time employees who are eligible for and offered a health insurance coverage funded in whole or at least fifty percent (50%) by the qualified business or industry (or by a leasing company with respect to leased employees);

(j) A list of all affiliates of the qualified business or industry, including the Federal Employer Identification Number for each affiliate, for which any state tax liability thereof has been or is expected to be offset by all or some portion of the mFlex tax incentives awarded to the qualified business or industry, which list shall further identify (i) any affiliate of the qualified business or industry that was not disclosed as such on its application or annual report submitted for the prior reporting period, whichever was more recent, but which has either become an affiliate of the qualified business or industry as of the date the current annual report or which the qualified business S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 2830 the date the current annual report or which the qualified business or industry desires to utilize all or a portion of its mFlex tax incentive as a credit to offset the affiliate's state tax liability following the date of the current annual report;

(4) Notwithstanding the obligation of a qualified business or industry to file an annual report with the authority for each qualified economic development project which has been certified, and for which any mFlex tax incentive has been awarded, the authority is authorized to request from the qualified business or S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 2931 authority is authorized to request from the qualified business or industry at any other time any of the information set forth herein that must be included in an annual report for purposes of determining whether a qualified business or industry has met any of the project performance measures set forth in its mFlex agreement on or before the respective deadlines imposed with respect thereto.

If the qualified business or industry thereafter fails to file its annual report with the authority, or provide such information requested by the authority within the thirty-day-cure period, the authority is authorized to suspend or revoke, at the discretion thereof, all or a portion of the amount of the mFlex S.tax incentive previously awarded to the qualified business or industry for its qualified economic development project.

S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 3032 tax(6) incentiveIf previouslya awardedqualified business or industry either fails to achieve or exceeds any project performance measure set forth in its mFlex agreement within or for any time period required by such agreement, the authority shall, following its (a) review of any annual report filed by the qualified business or industry or of any certified information provided by the qualified business or industry pursuant to subsection (4) of this section, and (b) verification based upon such information that the qualified business or industry either failed to achieve or exceeded any of the project performance measures set forth in its mFlex agreement within or for any time period required by such agreement, adjust the mFlex tax incentive awarded thereto for its qualified economic development project.project such that the award is no longer based upon any one or more of the performance measures set forth in its mFlex agreement, but is instead based upon one or more of the following, as applicable, as of the end of the most recent reporting year for which the annual report was filed:

(6) If a qualified business or industry either fails to achieve or exceeds any project performance measure set forth in its mFlex agreement within or for any time period required by such agreement, the authority shall, following its (a) review of any annual report filed by the qualified business or industry or of any certified information provided by the qualified business or industry pursuant to subsection (4) of this section, and (b) verification based upon such information that the qualified business or industry either failed to achieve or exceeded any of the project performance measures set forth in its mFlex agreement within or for any time period required by such agreement, adjust the mFlex tax incentive awarded thereto for its qualified economic development project such that the award is no longer based upon any one or more of the performance measures set forth in its mFlex agreement but is instead based upon one or more of the following, as applicable, as of the end of the most recent reporting year for which the annual report was filed:

(7) A qualified business or industry and the authority may, at any time, amend or restate an mFlex agreement in order to S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 3133 (7) A qualified business or industry and the authority may, at any time, amend or restate an mFlex agreement in order to modify the performance measures of the qualified business or industry with respect to its qualified economic development project, and in connection with such amendment or amendment and restatement, the authority shall modify the amount of the mFlex tax incentive awarded for the qualified economic development project to comport with the modified performance measures;

(9) If at any time the authority reduces the mFlex tax incentive award granted for the qualified economic development project to an amount less than the total amount of credits already applied and taken by the qualified business or industry, or by one or more affiliates thereof eligible to utilize such credit, to S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 3234 applied and taken by the qualified business or industry, or by one or more affiliates thereof eligible to utilize such credit, to offset state taxes thereof, the Department of Revenue shall charge the qualified business or industry, or such affiliate or affiliates, with an assessment for the amount of state taxes for which no mFlex tax incentive is available, following such reduction by the authority, for application as a tax credit, beginning with those state taxes against which the qualified business or industry most recently applied the credit, and such state tax assessment shall be immediately due and payable.

S.SECTION 8.

Audits and interagency cooperation.

(1) No provisions of Sections 1 through 10 of this act shall in any way S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 3335 SECTIONlimit 8.or restrict the authority of the Department of Revenue to perform audits for all state tax liabilities for any qualified business or industry that is awarded any mFlex tax incentives by the authority.

Audits and interagency cooperation.

(1) No provisions of Sections 1 through 10 of this act shall in any way limit or restrict the authority of the Department of Revenue to perform audits for all state tax liabilities for any qualified business or industry that is awarded any mFlex tax incentives by the authority.

(3) If any audit by the Department of Revenue results in a reclassification of component building materials, manufacturing equipment or nonmanufacturing equipment, as previously reported by a qualified business or industry, to a different property classification, or a change in the number of new full-time employees or average employer wage, as previously reported by a qualified business or industry, the authority is authorized to adjust the amount of the mFlex tax incentive awarded to the qualified business or industry for a qualified economic development project to comport with any property reclassification S.or change in the number of new full-time employees or average employer wage in the manner prescribed by Section 7 of this act.

S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 3436 or(4) changeThe inDepartment of Employment Security is authorized to provide to the numberauthority ofany newinformation full-timereceived, employeesobtained or averageproduced, employeror wagefindings inor determinations made, thereby with respect to any qualified business or industry that is awarded any mFlex tax incentives by the mannerauthority, prescribedand any such information, findings or determinations provided to the authority by Sectionthe 7Department of thisRevenue act.shall be exempt from the provisions of the Mississippi Public Records Act of 1983, Section 25-61-1 et seq.

(4) The Department of Employment Security is authorized to provide to the authority any information received, obtained or produced, or findings or determinations made, thereby with respect to any qualified business or industry that is awarded any mFlex tax incentives by the authority, and any such information, findings or determinations provided to the authority by the Department of Revenue shall be exempt from the provisions of the Mississippi Public Records Act of 1983, Section 25-61-1 et seq.

provided that any such analyses conducted by the University Research Center with respect to one or more particular qualified economic development projects shall be communicated and provided only to the Governor, Lieutenant S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 3537 particular qualified economic development projects shall be communicated and provided only to the Governor, Lieutenant Governor, Speaker of the House of Representatives and/or the authority.

(2) The authority shall have sole and exclusive jurisdiction and authority to determine whether an applicant qualifies as a qualified business or industry, whether an applicant's project qualifies as a qualified economic development project, whether to certify an applicant and its project as a qualified business or industry undertaking a qualified economic development project and the eligibility thereof for the mFlex tax incentive, the initial calculation of any mFlex tax incentive award, any terms or conditions or further requirements to be included in any mFlex agreement, and any subsequent adjustments to any mFlex tax incentive S.award or any revocation thereof, in all instances in accordance with Sections 1 through 10 of this act.

S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 3638 award(3) Nothing in Sections 1 through 10 of this act shall be construed to constitute a guarantee or assumption by the State of Mississippi of any revocationdebt thereof,of inany allcorporation, instanceslimited inliability accordancecompany, withpartnership, Sectionsperson 1or throughsole 10proprietorship, business trust or other legal entity and subunit or affiliate thereof nor to authorize the credit of thisthe act.state to be given, pledged or loaned to any corporation, limited liability company, partnership, person or sole proprietorship, business trust or other legal entity and subunit or affiliate thereof.

(3)Further, Nothingnothing in Sections 1 through 10 of this act shallgives beany construedright to constitute a guarantee or assumption by the State of Mississippi of any debtqualified of any corporation, limited liability company, partnership, person or sole proprietorship, business trust or otherindustry legal entity and subunit or affiliate thereof nor to authorize the credittax ofincentives theauthorized stateby toSections be1 given,through pledged10 orof loanedthis toact anyunless corporation,such limitedincentive liabilityis company,awarded partnership,by personSections or1 solethrough proprietorship,10 businessof trustthis oract. other legal entity and subunit or affiliate thereof.

Further, nothing in Sections 1 through 10 of this act gives any right to any qualified business or industry to the incentives authorized by Sections 1 through 10 of this act unless such incentive is awarded by Sections 1 through 10 of this act.

S.27-7-309.

(1) (a) Except as otherwise provided in this subsection, every employer required to deduct and withhold from wages under this article shall, for each calendar quarter, on or S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 3739 27-7-309.before the fifteenth day of the month following the close of such calendar quarter, file a withholding return as prescribed by the commissioner and pay over to the commissioner the full amount required to be deducted and withheld from wages by such employer for the calendar quarter.

(1) (a) Except as otherwise provided in this subsection, every employer required to deduct and withhold from wages under this article shall, for each calendar quarter, on or before the fifteenth day of the month following the close of such calendar quarter, file a withholding return as prescribed by the commissioner and pay over to the commissioner the full amount required to be deducted and withheld from wages by such employer for the calendar quarter.

(2) Notwithstanding any of the other provisions of this section, all transient employers and all employers engaged in any business which is seasonal shall make return and pay over to the S.commissioner on a monthly basis, the full amounts required to be deducted and withheld from the wages by such employer for the calendar month.

Such returns and payments to the commissioner by S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 3840 commissionersuch employers shall be made on aor monthlybefore basis,the fifteenth day of the fullmonth amountsfollowing requiredthe tomonth befor which such amounts were deducted and withheld from the wages byof suchhis employeremployees. for the calendar month.

Such returns and payments to the commissioner by such employers shall be made on or before the fifteenth day of the month following the month for which such amounts were deducted and withheld from the wages of his employees.

(5) Once an employer has become liable to a quarterly return of withholding, he must continue to file a quarterly report, even though no tax has been withheld, until such time as he notifies S.the commissioner, in writing, that he no longer has employees or that he is no longer liable for such quarterly returns.

S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 3941 (6) Once an employer has become liable to a monthly return of withholding, he must continue to file a monthly report, even though no tax has been withheld until such time as he notifies the commissioner, in writing, that he no longer has employees or that he is no longer liable for such quarterlymonthly returns.

(6) Once an employer has become liable to a monthly return of withholding, he must continue to file a monthly report, even though no tax has been withheld until such time as he notifies the commissioner, in writing, that he no longer has employees or that he is no longer liable for such monthly returns.

The annual statement shall be in the form prescribed by the commissioner and shall be filed with the commissioner and two (2) copies thereof furnished the employee S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 4042 the form prescribed by the commissioner and shall be filed with the commissioner and two (2) copies thereof furnished the employee on or before the thirty-first day of January following the close of the calendar year.

SECTION 13.

Section 27-13-5, Mississippi Code of 1972, is amended as follows:

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 4143 SECTION27-13-5. 13.

Section 27-13-5, Mississippi Code of 1972, is amended as follows:

27-13-5.

(iii) For tax years beginning on or after January 1, 2019, but before January 1, 2020, Two Dollars and Twenty-five S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 4244 (iii) For tax years beginning on or after January 1, 2019, but before January 1, 2020, Two Dollars and Twenty-five Cents ($2.25) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.

(vi) For tax years beginning on or after January 1, 2022, but before January 1, 2023, One Dollar and Fifty Cents ($1.50) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 4345 ($1.50) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.

(ix) For tax years beginning on or after January 1, 2025, but before January 1, 2026, Seventy-five Cents (75¢) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the exercise of any S.power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.

S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 4446 (x) For tax years beginning on or after January 1, 2026, but before January 1, 2027, Fifty Cents (50¢) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.

(x) For tax years beginning on or after January 1, 2026, but before January 1, 2027, Fifty Cents (50¢) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.

(2) Annual report of domestic corporations.

Each domestic corporation shall file an annual report as required by the provisions of Section 79-4-16.22.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 4547 (2)(3) Annual(a) reportA ofcorporation domesticthat corporations.has negotiated a fee-in-lieu as defined in Section 57-75-5 shall not be subject to the tax levied by this section on such project;

Each domestic corporation shall file an annual report as required by the provisions of Section 79-4-16.22.

(3) (a) A corporation that has negotiated a fee-in-lieu as defined in Section 57-75-5 shall not be subject to the tax levied by this section on such project;

(iii) In the event that the annual number of full-time jobs maintained by the enterprise falls below the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and the enterprise for two (2) consecutive years, the franchise tax S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 4648 minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and the enterprise for two (2) consecutive years, the franchise tax fee-in-lieu for the project shall be suspended until the first tax year during which the annual number of full-time jobs maintained by the enterprise reaches the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and the enterprise.

(5) A business enterprise operating a project as defined in Section 57-64-33, in a county that is a member of a regional economic development alliance created under the Regional Economic Development Act shall not be subject to the tax levied by this S.section on the value of capital used, invested or employed by the business enterprise in such a county as provided in Section 57-64-33.

S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 4749 section(6) onThe thetax valuelevied ofby capitalthis used,chapter investedand orpaid employed by thea business enterprise located in such a countyredevelopment asproject providedarea under Sections 57-91-1 through 57-91-11 shall be deposited into the Redevelopment Project Incentive Fund created in Section 57-64-33.57-91-9.

(6) The tax levied by this chapter and paid by a business enterprise located in a redevelopment project area under Sections 57-91-1 through 57-91-11 shall be deposited into the Redevelopment Project Incentive Fund created in Section 57-91-9.

Except as otherwise provided in subsections (3), (4), (5) and (7) of this section, there is hereby imposed, levied and assessed upon every corporation, association or joint-stock company, or partnership treated as a corporation under the income tax laws or regulations S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 4850 there is hereby imposed, levied and assessed upon every corporation, association or joint-stock company, or partnership treated as a corporation under the income tax laws or regulations as hereinbefore defined, organized and existing under and by virtue of the laws of some other state, territory or country, or organized and existing without any specific statutory authority, now or hereafter doing business or exercising any power, privilege or right within this state, as hereinbefore defined, a franchise or excise tax equal to:

(iii) For tax years beginning on or after January 1, 2019, but before January 1, 2020, Two Dollars and Twenty-five Cents ($2.25) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 4951 ($100,000.00), of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.

(vi) For tax years beginning on or after January 1, 2022, but before January 1, 2023, One Dollar and Fifty Cents ($1.50) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the S.exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.

S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 5052 (vii) For tax years beginning on or after January 1, 2023, but before January 1, 2024, One Dollar and Twenty-five Cents ($1.25) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.

(vii) For tax years beginning on or after January 1, 2023, but before January 1, 2024, One Dollar and Twenty-five Cents ($1.25) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.

(x) For tax years beginning on or after January 1, 2026, but before January 1, 2027, Fifty Cents (50¢) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 5153 (x) For tax years beginning on or after January 1, 2026, but before January 1, 2027, Fifty Cents (50¢) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.

S.(3) (a) A corporation that has negotiated a fee-in-lieu as defined in Section 57-75-5 shall not be subject to the tax levied by this section on such project;

however, the fee-in-lieu payment S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 5254 (3)shall (a)be Aotherwise corporationtreated thatin hasthe negotiatedsame amanner fee-in-lieu as defined in Section 57-75-5 shall not be subject to the taxpayment leviedof byfranchise thistaxes. section on such project;

however, the fee-in-lieu payment shall be otherwise treated in the same manner as the payment of franchise taxes.

(iii) In the event that the annual number of full-time jobs maintained by the enterprise falls below the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and the enterprise for two (2) consecutive years, the franchise tax fee-in-lieu for the project shall be suspended until the first tax year during which the annual number of full-time jobs maintained by the enterprise reaches the minimum annual number of full-time S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 5355 fee-in-lieu for the project shall be suspended until the first tax year during which the annual number of full-time jobs maintained by the enterprise reaches the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and the enterprise.

(6) The tax levied by this chapter and paid by a business enterprise located in a redevelopment project area under Sections S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 5456 (6) The tax levied by this chapter and paid by a business enterprise located in a redevelopment project area under Sections 57-91-1 through 57-91-11 shall be deposited into the Redevelopment Project Incentive Fund created in Section 57-91-9.

and, upon request, he shall furnish any taxpayer with a copy of the rules and regulations.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 5557 and,(2) uponAll request,forms, henecessary shallfor furnishthe anyenforcement taxpayerof withthe asales copytax oflaw, theshall rulesbe prescribed, printed and regulations.furnished by the commissioner.

(2)(3) AllThe forms,commissioner necessarymay adopt rules and regulations providing for the enforcementissuance of permits to manufacturers, utilities, construction contractors, companies receiving bond financing through the salesMississippi taxBusiness law,Finance Corporation or the Mississippi Development Authority, and other taxpayers as determined by the commissioner, and the commissioner shall beadopt prescribed,rules printedand regulations providing for the issuance of a permit to any qualified business or industry, which is certified as such by the Mississippi Development Authority pursuant to the Mississippi Flexible Tax Incentive Act and furnishedawarded any mFlex tax incentive amount for such qualified business's or industry's qualified economic development project, certified as such by the commissioner.Mississippi Development Authority pursuant to the Mississippi Flexible Tax Incentive Act, to purchase tangible personal property taxed under Section 27-65-17, items taxed under Section 27-65-18, items taxed under Section 27-65-19, services taxed under Section 27-65-23, items taxed under Section 27-65-24, and items taxed under Section 27-65-26 without the payment to the vendor of the tax imposed by the sales and use tax laws, and providing for persons to report and pay the tax directly to the commissioner in instances where the commissioner determines that these provisions will facilitate and expedite the collection of the tax at the proper rates which S.

(3) The commissioner may adopt rules and regulations providing for the issuance of permits to manufacturers, utilities, construction contractors, companies receiving bond financing through the Mississippi Business Finance Corporation or the Mississippi Development Authority, and other taxpayers as determined by the commissioner, and the commissioner shall adopt rules and regulations providing for the issuance of a permit to any qualified business or industry, which is certified as such by the Mississippi Development Authority pursuant to the Mississippi Flexible Tax Incentive Act and awarded any mFlex tax incentive amount for such qualified business's or industry's qualified economic development project, certified as such by the Mississippi Development Authority pursuant to the Mississippi Flexible Tax Incentive Act, to purchase tangible personal property taxed under Section 27-65-17, items taxed under Section 27-65-18, items taxed under Section 27-65-19, services taxed under Section 27-65-23, items taxed under Section 27-65-24, and items taxed under Section 27-65-26 without the payment to the vendor of the tax imposed by the sales and use tax laws, and providing for persons to report and pay the tax directly to the commissioner in instances where S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 5658 the commissioner determines that these provisions will facilitate and expedite the collection of the tax at the proper rates which may be due on purchases by the permittee.

Every taxpayer shall file a return with his remittance, which return shall be prescribed by the commissioner and shall show for the calendar month preceding the tax payment date, the total sale or purchase price, or value of tangible personal property or specified digital products sold, used, stored or consumed by him for benefit received or service performed, and such other information as the S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 5759 received or service performed, and such other information as the commissioner may deem pertinent and necessary for determining the amount of tax due thereunder.

The credit applied for a tax-reporting period S.shall be reflected on the form of the return in the manner prescribed by the commissioner.

S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 5860 shallSECTION be17. reflected on the form of the return in the manner prescribed by the commissioner.

SECTION 17.

(3) Any breakouts or subcategories of the total qualified investment amounts reported pursuant to Sections 3(d), 7(2)(a) and 7(2)(b) of this act, and information reported pursuant to Sections 3(g), 3(h), 3(j), 7(2)(f), 7(2)(g), 7(2)(h) and 7(2)(i) of this S.act shall not be subject to any disclosure under the Mississippi Public Records Act of 1983.

In addition, any information and S.

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG PAGE 5961 actdocumentation, shallincluding notwithout belimitation, subjectcopies toof any disclosurecertifications, undertogether with any amendments thereto, made by the Mississippi PublicDevelopment RecordsAuthority, Actand copies of 1983.any mFlex agreements, together with any amendments thereto, approved and executed by the Mississippi Development Authority, pursuant to the Mississippi Flexible Tax Incentive Act, which are (a) provided by the authority to the Governor, Lieutenant Governor and/or Speaker of the House of Representatives pursuant to Section 4(7) or Section 7(11) of this act;

In addition, any information and documentation, including without limitation, copies of any certifications, together with any amendments thereto, made by the Mississippi Development Authority, and copies of any mFlex agreements, together with any amendments thereto, approved and executed by the Mississippi Development Authority, pursuant to the Mississippi Flexible Tax Incentive Act, which are (a) provided by the authority to the Governor, Lieutenant Governor and/or Speaker of the House of Representatives pursuant to Section 4(7) or Section 7(11) of this act;

Section 27-7-22, Mississippi Code of 1972, whichis providesamended income tax credits for qualified businesses and qualified companies as definedfollows: in certain repealed code sections, is repealed.

27-7-22.

(1) For any qualified business, as defined in Section 57-51-5, which is located in a county, or portion thereof, designated as an enterprise zone pursuant to Title 57, Chapter 51, Mississippi Code of 1972, there shall be allowed as a credit against the tax imposed by this chapter, an amount equal to One Thousand Dollars ($1,000.00) per net full-time employee as determined by the average annual employment of the business S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 62 reported to the Employment Security Commission.

Such credit shall be allowed annually to each qualified business for a period not to exceed ten (10) years.

If the amount allowable as a credit exceeds the tax imposed by this chapter, the amount of such excess shall not be refundable or carried forward to any other taxable year.

For the purpose of determining the credit allowed to a qualified business which is an existing trade or business having expanded its buildings and facilities, the number of net full-time employees shall be the difference between the average annual employment of such business before and after such expansion.

If the Mississippi Enterprise Zone Act is repealed, any qualified business which had been granted a tax credit under this subsection prior to the date of such repeal shall be entitled to such tax credit until the period for which it was granted expires.

(2) For any qualified business, as defined in Section 57-54-5, there shall be allowed as a credit against the tax imposed by this chapter, an amount equal to One Thousand Dollars ($1,000.00) per net full-time employee as determined by the average annual employment of the business reported to the Employment Security Commission.

Such credit shall be allowed annually to each qualified business for a period not to exceed ten (10) years.

If the amount allowable as a credit exceeds the tax imposed by this chapter, the amount of such excess shall not be refundable or carried forward to any other taxable year.

S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 63 For the purpose of determining the credit allowed to a qualified business which is an existing trade or business having expanded its buildings and facilities, the number of net full-time employees shall be the difference between the average annual employment of such business before and after such expansion.

If the Mississippi Advanced Technology Initiative Act is repealed, any qualified business which had been granted a tax credit under this subsection prior to the date of such repeal shall be entitled to such tax credit until the period for which it was granted expires.

(3) For any qualified company, certified as such by the Mississippi Board of Economic Development under Section 57-53-1, there shall be allowed as a credit against the tax imposed by this chapter, an amount equal to One Thousand Dollars ($1,000.00) per net full-time employee in this state, provided there is a minimum of seventy-five (75) net full-time employees, as determined by the average annual employment of the company in this state reported to the Employment Security Commission.

Such credit shall be allowed annually to each qualified company for a period not to exceed ten (10) years.

If the amount allowable as a credit exceeds the tax imposed by this chapter, the amount of such excess shall not be refundable or carried forward to any other taxable year.

For the purpose of determining the credit allowed to a qualified company which has expanded its existing buildings and facilities, the number of net full-time employees shall be the S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 64 difference between the average annual employment of such company before and after such expansion.

(4) For any qualified business or industry which is certified as such by the Mississippi Board of Economic Development pursuant to the Mississippi Flexible Tax Incentive Act and awarded any mFlex tax incentive amount for such qualified business's or industry's qualified economic development project, there shall be allowed as a credit against the tax imposed by this chapter, an amount prescribed by, and subject to, the Mississippi Flexible Tax Incentive Act.

ThisFrom actand shallafter takeJanuary effect1, and2023, beif the amount of any mFlex tax incentive or other incentive that a qualified business or other entity is eligible to receive under the Mississippi Flexible Tax Incentive Act is less than the amount of the mFlex tax incentive or other incentive that the qualified business or other entity would have been eligible to receive or to use if the mFlex tax incentive or other incentive had been calculated using any applicable income tax rates in forceSection from27-7-5, andMississippi afterCode Julyof 1972, that were in effect before January 1, 2022,2023, andthen the qualified business or other entity shall standreceive repealeda ongrant Junefrom 30,the 2022.Mississippi Development Authority equal to the difference between such two amounts.

SECTION 20.

Section 57-62-9, Mississippi Code of 1972, is amended as follows:

2159 *SS26/R336CS**SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336CS22/SS26/R336SG ST:PAGE 65 [For businesses or industries that received or applied for incentive payments prior to July 1, 2005, this section shall read as follows:] 57-62-9.

(1) Except as otherwise provided in this section, a qualified business or industry that meets the qualifications specified in this chapter may receive quarterly incentive payments for a period not to exceed ten (10) years from the Department of Revenue pursuant to the provisions of this chapter in an amount which shall be equal to the net benefit rate multiplied by the actual gross payroll of new direct jobs for a calendar quarter as verified by the Mississippi Department of Employment Security, but not to exceed the amount of money previously paid into the fund by the employer.

A qualified business or industry that is a project as defined in Section 57-75-5(f)(iv)1 may elect the date upon which the ten-year period will begin.

Such date may not be later than sixty (60) months after the date the business or industry applied for incentive payments.

(2) (a) A qualified business or industry that is a project as defined in Section 57-75-5(f)(iv)1 may apply to the MDA to receive incentive payments for an additional period not to exceed five (5) years beyond the expiration date of the initial ten-year period if:

(i) The qualified business or industry creates at least three thousand (3,000) new direct jobs within five (5) years S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 66 after the date the business or industry commences commercial production;

(ii) Within five (5) years after the date the business or industry commences commercial production, the average annual wage of the jobs is at least one hundred fifty percent (150%) of the most recently published state average annual wage or the most recently published average annual wage of the county in which the qualified business or industry is located as determined by the Mississippi Department of Employment Security, whichever is the lesser.

The criteria for the average annual wage requirement shall be based upon the state average annual wage or the average annual wage of the county whichever is appropriate, at the time of creation of the minimum number of jobs, and the threshold established at that time will remain constant for the duration of the additional period;

and (iii) The qualified business or industry meets and maintains the job and wage requirements of subparagraphs (i) and (ii) of this paragraph (a) for four (4) consecutive calendar quarters.

(b) A qualified business or industry that is a project as defined in Section 57-75-5(f)(iv)1 and qualified to receive incentive payments for the additional period provided in paragraph (a) of this subsection (2) may apply to the MDA to receive incentive payments for an additional period not to exceed ten (10) S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 67 years beyond the expiration date of the additional period provided in paragraph (a) of this subsection (2) if:

(i) The qualified business or industry creates at least four thousand (4,000) new direct jobs after qualifying for the additional incentive period provided in paragraph (a) of this subsection (2) but before the expiration of the additional period.

For purposes of determining whether the business or industry meets the minimum jobs requirement of this subparagraph (i), the number of jobs the business or industry created in order to meet the minimum jobs requirement of paragraph (a) of this subsection (2) shall be subtracted from the minimum jobs requirement of this subparagraph (i);

(ii) The average annual wage of the jobs is at least one hundred fifty percent (150%) of the most recently published state average annual wage or the most recently published average annual wage of the county in which the qualified business or industry is located as determined by the Mississippi Department of Employment Security, whichever is the lesser.

The criteria for the average annual wage requirement shall be based upon the state average annual wage or the average annual wage of the county whichever is appropriate, at the time of creation of the minimum number of jobs, and the threshold established at that time will remain constant for the duration of the additional period;

and (iii) The qualified business or industry meets and maintains the job and wage requirements of subparagraphs (i) and S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 68 (ii) of this paragraph (b) for four (4) consecutive calendar quarters.

(3) In order to receive incentive payments, an establishment shall apply to the MDA.

The application shall be on a form prescribed by the MDA and shall contain such information as may be required by the MDA to determine if the applicant is qualified.

(4) In order to qualify to receive such payments, the establishment applying shall be required to:

(a) Be engaged in a qualified business or industry;

(b) Provide an average salary, excluding benefits which are not subject to Mississippi income taxes, of at least one hundred twenty-five percent (125%) of the most recently published state average annual wage or the most recently published average annual wage of the county in which the qualified business or industry is located as determined by the Mississippi Department of Employment Security, whichever is the lesser.

The criteria for this requirement shall be based upon the state average annual wage or the average annual wage of the county whichever is appropriate, at the time of application, and the threshold established upon application will remain constant for the duration of the project;

(c) The business or industry must create and maintain a minimum of ten (10) full-time jobs in counties that have an average unemployment rate over the previous twelve-month period which is at least one hundred fifty percent (150%) of the most recently published state unemployment rate, as determined by the S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 69 Mississippi Department of Employment Security or in Tier Three counties as determined under Section 57-73-21.

In all other counties, the business or industry must create and maintain a minimum of twenty-five (25) full-time jobs.

The criteria for this requirement shall be based on the designation of the county at the time of the application.

The threshold established upon the application will remain constant for the duration of the project.

The business or industry must meet its job creation commitment within twenty-four (24) months of the application approval.

However, if the qualified business or industry is applying for incentive payments for an additional period under subsection (2) of this section, the business or industry must comply with the applicable job and wage requirements of subsection (2) of this section.

(5) The MDA shall determine if the applicant is qualified to receive incentive payments.

If the applicant is determined to be qualified by the MDA, the MDA shall conduct a cost/benefit analysis to determine the estimated net direct state benefits and the net benefit rate applicable for a period not to exceed ten (10) years and to estimate the amount of gross payroll for the period.

If the applicant is determined to be qualified to receive incentive payments for an additional period under subsection (2) of this section, the MDA shall conduct a cost/benefit analysis to determine the estimated net direct state benefits and the net benefit rate applicable for the appropriate additional period and S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 70 to estimate the amount of gross payroll for the additional period.

In conducting such cost/benefit analysis, the MDA shall consider quantitative factors, such as the anticipated level of new tax revenues to the state along with the cost to the state of the qualified business or industry, and such other criteria as deemed appropriate by the MDA, including the adequacy of retirement benefits that the business or industry provides to individuals it employs in new direct jobs in this state.

In no event shall incentive payments, cumulatively, exceed the estimated net direct state benefits.

Once the qualified business or industry is approved by the MDA, an agreement shall be deemed to exist between the qualified business or industry and the State of Mississippi, requiring the continued incentive payment, together with any amount due pursuant to subsection (8) of this section, if applicable, to be made as long as the qualified business or industry retains its eligibility.

(6) Upon approval of such an application, the MDA shall notify the Department of Revenue and shall provide it with a copy of the approved application and the estimated net direct state benefits.

The Department of Revenue may require the qualified business or industry to submit such additional information as may be necessary to administer the provisions of this chapter.

The qualified business or industry shall report to the Department of Revenue periodically to show its continued eligibility for incentive payments.

The qualified business or industry may be S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 71 audited by the Department of Revenue to verify such eligibility.

In addition, the State Auditor may conduct performance and compliance audits under this chapter according to Section 7-7-211(o) and may bill the oversight agency.

(7) If the qualified business or industry is located in an area that has been declared by the Governor to be a disaster area and as a result of the disaster the business or industry is unable to create or maintain the full-time jobs required by this section:

(a) The Commissioner of Revenue may extend the period of time that the business or industry may receive incentive payments for a period of time not to exceed two (2) years;

(b) The Commissioner of Revenue may waive the requirement that a certain number of jobs be maintained for a period of time not to exceed twenty-four (24) months;

and (c) The MDA may extend the period of time within which the jobs must be created for a period of time not to exceed twenty-four (24) months.

(8) Notwithstanding any other provision of this section to the contrary, from and after January 1, 2023, if the amount of the incentive payment that a qualified business or industry is eligible to receive under this chapter is less than the amount that the incentive payment would have been if the payment had been calculated using any applicable income tax rates in Section 27-7-5 that were in effect before January 1, 2023, then the qualified business or industry also shall receive a grant equal to the S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 72 difference between such two (2) amounts.

Further, the term "incentive payment," as such term is used in this chapter, shall be deemed to not refer to or otherwise include any grant payment payable to a qualified business or industry pursuant to this subsection.

[For businesses or industries that received or applied for incentive payments from and after July 1, 2005, but prior to July 1, 2010, this section shall read as follows:] 57-62-9.

(1) (a) Except as otherwise provided in this section, a qualified business or industry that meets the qualifications specified in this chapter may receive quarterly incentive payments for a period not to exceed ten (10) years from the Department of Revenue pursuant to the provisions of this chapter in an amount which shall be equal to the net benefit rate multiplied by the actual gross payroll of new direct jobs for a calendar quarter as verified by the Mississippi Department of Employment Security, but not to exceed:

(i) Ninety percent (90%) of the amount of money previously paid into the fund by the employer if the employer provides an average annual salary, excluding benefits which are not subject to Mississippi income taxes, of at least one hundred seventy-five percent (175%) of the most recently published state average annual wage or the most recently published average annual wage of the county in which the qualified business or industry is S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 73 located as determined by the Mississippi Department of Employment Security, whichever is the lesser;

(ii) Eighty percent (80%) of the amount of money previously paid into the fund by the employer if the employer provides an average annual salary, excluding benefits which are not subject to Mississippi income taxes, of at least one hundred twenty-five percent (125%) but less than one hundred seventy-five percent (175%) of the most recently published state average annual wage or the most recently published average annual wage of the county in which the qualified business or industry is located as determined by the Mississippi Department of Employment Security, whichever is the lesser;

or (iii) Seventy percent (70%) of the amount of money previously paid into the fund by the employer if the employer provides an average annual salary, excluding benefits which are not subject to Mississippi income taxes, of less than one hundred twenty-five percent (125%) of the most recently published state average annual wage or the most recently published average annual wage of the county in which the qualified business or industry is located as determined by the Mississippi Department of Employment Security, whichever is the lesser.

(b) A qualified business or industry that is a project as defined in Section 57-75-5(f)(iv)1 may elect the date upon which the ten-year period will begin.

Such date may not be later S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 74 than sixty (60) months after the date the business or industry applied for incentive payments.

(2) (a) A qualified business or industry that is a project as defined in Section 57-75-5(f)(iv)1 may apply to the MDA to receive incentive payments for an additional period not to exceed five (5) years beyond the expiration date of the initial ten-year period if:

(i) The qualified business or industry creates at least three thousand (3,000) new direct jobs within five (5) years after the date the business or industry commences commercial production;

(ii) Within five (5) years after the date the business or industry commences commercial production, the average annual wage of the jobs is at least one hundred fifty percent (150%) of the most recently published state average annual wage or the most recently published average annual wage of the county in which the qualified business or industry is located as determined by the Mississippi Department of Employment Security, whichever is the lesser.

The criteria for the average annual wage requirement shall be based upon the state average annual wage or the average annual wage of the county whichever is appropriate, at the time of creation of the minimum number of jobs, and the threshold established at that time will remain constant for the duration of the additional period;

and S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 75 (iii) The qualified business or industry meets and maintains the job and wage requirements of subparagraphs (i) and (ii) of this paragraph (a) for four (4) consecutive calendar quarters.

(b) A qualified business or industry that is a project as defined in Section 57-75-5(f)(iv)1 and qualified to receive incentive payments for the additional period provided in paragraph (a) of this subsection (2) may apply to the MDA to receive incentive payments for an additional period not to exceed ten (10) years beyond the expiration date of the additional period provided in paragraph (a) of this subsection (2) if:

(i) The qualified business or industry creates at least four thousand (4,000) new direct jobs after qualifying for the additional incentive period provided in paragraph (a) of this subsection (2) but before the expiration of the additional period.

For purposes of determining whether the business or industry meets the minimum jobs requirement of this subparagraph (i), the number of jobs the business or industry created in order to meet the minimum jobs requirement of paragraph (a) of this subsection (2) shall be subtracted from the minimum jobs requirement of this subparagraph (i);

(ii) The average annual wage of the jobs is at least one hundred fifty percent (150%) of the most recently published state average annual wage or the most recently published average annual wage of the county in which the qualified business S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 76 or industry is located as determined by the Mississippi Department of Employment Security, whichever is the lesser.

The criteria for the average annual wage requirement shall be based upon the state average annual wage or the average annual wage of the county whichever is appropriate, at the time of creation of the minimum number of jobs, and the threshold established at that time will remain constant for the duration of the additional period;

and (iii) The qualified business or industry meets and maintains the job and wage requirements of subparagraphs (i) and (ii) of this paragraph (b) for four (4) consecutive calendar quarters.

(3) In order to receive incentive payments, an establishment shall apply to the MDA.

The application shall be on a form prescribed by the MDA and shall contain such information as may be required by the MDA to determine if the applicant is qualified.

(4) (a) In order to qualify to receive such payments, the establishment applying shall be required to meet the definition of the term "qualified business or industry";

(b) The criteria for the average annual salary requirement shall be based upon the state average annual wage or the average annual wage of the county whichever is appropriate, at the time of application, and the threshold established upon application will remain constant for the duration of the project;

(c) The business or industry must meet its job creation commitment within twenty-four (24) months of the application S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 77 approval.

However, if the qualified business or industry is applying for incentive payments for an additional period under subsection (2) of this section, the business or industry must comply with the applicable job and wage requirements of subsection (2) of this section.

(5) (a) The MDA shall determine if the applicant is qualified to receive incentive payments.

(b) If the applicant is determined to be qualified to receive incentive payments for an additional period under subsection (2) of this section, the MDA shall conduct a cost/benefit analysis to determine the estimated net direct state benefits and the net benefit rate applicable for the appropriate additional period and to estimate the amount of gross payroll for the additional period.

In conducting such cost/benefit analysis, the MDA shall consider quantitative factors, such as the anticipated level of new tax revenues to the state along with the cost to the state of the qualified business or industry, and such other criteria as deemed appropriate by the MDA, including the adequacy of retirement benefits that the business or industry provides to individuals it employs in new direct jobs in this state.

In no event shall incentive payments, cumulatively, exceed the estimated net direct state benefits.

Once the qualified business or industry is approved by the MDA, an agreement shall be deemed to exist between the qualified business or industry and the State of Mississippi, requiring the continued incentive payment, S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 78 together with any amount due pursuant to subsection (8) of this section, if applicable, to be made as long as the qualified business or industry retains its eligibility.

(6) Upon approval of such an application, the MDA shall notify the Department of Revenue and shall provide it with a copy of the approved application and the estimated net direct state benefits.

The Department of Revenue may require the qualified business or industry to submit such additional information as may be necessary to administer the provisions of this chapter.

The qualified business or industry shall report to the Department of Revenue periodically to show its continued eligibility for incentive payments.

The qualified business or industry may be audited by the Department of Revenue to verify such eligibility.

In addition, the State Auditor may conduct performance and compliance audits under this chapter according to Section 7-7-211(o) and may bill the oversight agency.

(7) If the qualified business or industry is located in an area that has been declared by the Governor to be a disaster area and as a result of the disaster the business or industry is unable to create or maintain the full-time jobs required by this section:

(a) The Commissioner of Revenue may extend the period of time that the business or industry may receive incentive payments for a period of time not to exceed two (2) years;

S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 79 (b) The Commissioner of Revenue may waive the requirement that a certain number of jobs be maintained for a period of time not to exceed twenty-four (24) months;

and (c) The MDA may extend the period of time within which the jobs must be created for a period of time not to exceed twenty-four (24) months.

(8) Notwithstanding any other provision of this section to the contrary, from and after January 1, 2023, if the amount of the incentive payment that a qualified business or industry is eligible to receive under this chapter is less than the amount that the incentive payment would have been if the payment had been calculated using any applicable income tax rates in Section 27-7-5 that were in effect before January 1, 2023, then the qualified business or industry also shall receive a grant equal to the difference between such two (2) amounts.

Further, the term "incentive payment," as such term is used in this chapter, shall be deemed to not refer to or otherwise include any grant payment payable to a qualified business or industry pursuant to this subsection.

[For businesses or industries that apply for incentive payments from and after July 1, 2010, this section shall read as follows:] 57-62-9.

(1) (a) Except as otherwise provided in this section, a qualified business or industry that meets the qualifications specified in this chapter may receive quarterly S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 80 incentive payments for a period not to exceed ten (10) years from the Department of Revenue pursuant to the provisions of this chapter in an amount which shall be equal to ninety percent (90%) of the amount of actual income tax withheld for employees with new direct jobs, but in no event more than four percent (4%) of the total annual salary paid for new direct jobs during such period, excluding benefits which are not subject to Mississippi income taxes.

(b) A qualified business or industry that is a project as defined in Section 57-75-5(f)(iv)1 may elect the date upon which the ten-year period will begin.

Such date may not be later than sixty (60) months after the date the business or industry applied for incentive payments.

(c) A qualified business or industry as defined in Section 57-62-5(a)(iii) may elect the date upon which the ten-year period will begin and may elect to begin receiving incentive payments as early as the second quarter after that date.

Incentive payments will be calculated on all jobs above the existing number of jobs as of the date the MDA determines that the applicant is qualified to receive incentive payments.

In the event that the qualified business or industry falls below the number of existing jobs at the time of determination that the applicant is qualified to receive the incentive payment, the incentive payment shall cease until the qualified business or industry once again exceeds that number.

If after forty-eight S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 81 (48) months, the qualified business or industry has failed to create at least three thousand (3,000) new direct jobs, incentive payments shall cease and the qualified business or industry shall not be qualified to receive further incentive payments.

(2) (a) A qualified business or industry that is a project as defined in Section 57-75-5(f)(iv)1 may apply to the MDA to receive incentive payments for an additional period not to exceed five (5) years beyond the expiration date of the initial ten-year period if:

(i) The qualified business or industry creates at least three thousand (3,000) new direct jobs within five (5) years after the date the business or industry commences commercial production;

(ii) Within five (5) years after the date the business or industry commences commercial production, the average annual wage of the jobs is at least one hundred fifty percent (150%) of the most recently published state average annual wage or the most recently published average annual wage of the county in which the qualified business or industry is located as determined by the Mississippi Department of Employment Security, whichever is the lesser.

The criteria for the average annual wage requirement shall be based upon the state average annual wage or the average annual wage of the county whichever is appropriate, at the time of creation of the minimum number of jobs, and the threshold S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 82 established at that time will remain constant for the duration of the additional period;

and (iii) The qualified business or industry meets and maintains the job and wage requirements of subparagraphs (i) and (ii) of this paragraph (a) for four (4) consecutive calendar quarters.

(b) A qualified business or industry that is a project as defined in Section 57-75-5(f)(iv)1 and qualified to receive incentive payments for the additional period provided in paragraph (a) of this subsection (2) may apply to the MDA to receive incentive payments for an additional period not to exceed ten (10) years beyond the expiration date of the additional period provided in paragraph (a) of this subsection (2) if:

(i) The qualified business or industry creates at least four thousand (4,000) new direct jobs after qualifying for the additional incentive period provided in paragraph (a) of this subsection (2) but before the expiration of the additional period.

For purposes of determining whether the business or industry meets the minimum jobs requirement of this subparagraph (i), the number of jobs the business or industry created in order to meet the minimum jobs requirement of paragraph (a) of this subsection (2) shall be subtracted from the minimum jobs requirement of this subparagraph (i);

(ii) The average annual wage of the jobs is at least one hundred fifty percent (150%) of the most recently S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 83 published state average annual wage or the most recently published average annual wage of the county in which the qualified business or industry is located as determined by the Mississippi Department of Employment Security, whichever is the lesser.

The criteria for the average annual wage requirement shall be based upon the state average annual wage or the average annual wage of the county whichever is appropriate, at the time of creation of the minimum number of jobs, and the threshold established at that time will remain constant for the duration of the additional period;

and (iii) The qualified business or industry meets and maintains the job and wage requirements of subparagraphs (i) and (ii) of this paragraph (b) for four (4) consecutive calendar quarters.

(3) In order to receive incentive payments, an establishment shall apply to the MDA.

The application shall be on a form prescribed by the MDA and shall contain such information as may be required by the MDA to determine if the applicant is qualified.

(4) (a) In order to qualify to receive such payments, the establishment applying shall be required to meet the definition of the term "qualified business or industry";

(b) The criteria for the average annual salary requirement shall be based upon the state average annual wage or the average annual wage of the county whichever is appropriate, at the time of application, and the threshold established upon application will remain constant for the duration of the project;

S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 84 (c) Except as otherwise provided for a qualified business or industry as defined in Section 57-62-5(a)(iii), the business or industry must meet its job creation commitment within twenty-four (24) months of the application approval.

However, if the qualified business or industry is applying for incentive payments for an additional period under subsection (2) of this section, the business or industry must comply with the applicable job and wage requirements of subsection (2) of this section.

(5) (a) The MDA shall determine if the applicant is qualified to receive incentive payments.

(b) If the applicant is determined to be qualified to receive incentive payments for an additional period under subsection (2) of this section, the MDA shall conduct an analysis to estimate the amount of gross payroll for the appropriate additional period.

Incentive payments, cumulatively, shall not exceed ninety percent (90%) of the amount of actual income tax withheld for employees with new direct jobs, but in no event more than four percent (4%) of the total annual salary paid for new direct jobs during the additional period, excluding benefits which are not subject to Mississippi income taxes.

Once the qualified business or industry is approved by the MDA, an agreement shall be deemed to exist between the qualified business or industry and the State of Mississippi, requiring the continued incentive payment, together with any amount due pursuant to subsection (8) of this S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 85 section, if applicable, to be made as long as the qualified business or industry retains its eligibility.

(6) Upon approval of such an application, the MDA shall notify the Department of Revenue and shall provide it with a copy of the approved application and the minimum job and salary requirements.

The Department of Revenue may require the qualified business or industry to submit such additional information as may be necessary to administer the provisions of this chapter.

The qualified business or industry shall report to the Department of Revenue periodically to show its continued eligibility for incentive payments.

The qualified business or industry may be audited by the Department of Revenue to verify such eligibility.

In addition, the State Auditor may conduct performance and compliance audits under this chapter according to Section 7-7-211(o) and may bill the oversight agency.

(7) If the qualified business or industry is located in an area that has been declared by the Governor to be a disaster area and as a result of the disaster the business or industry is unable to create or maintain the full-time jobs required by this section:

(a) The Commissioner of Revenue may extend the period of time that the business or industry may receive incentive payments for a period of time not to exceed two (2) years;

(b) The Commissioner of Revenue may waive the requirement that a certain number of jobs be maintained for a period of time not to exceed twenty-four (24) months;

and S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 86 (c) The MDA may extend the period of time within which the jobs must be created for a period of time not to exceed twenty-four (24) months.

(8) Notwithstanding any other provision of this section to the contrary, from and after January 1, 2023, if the amount of the incentive payment that a qualified business or industry is eligible to receive under this chapter is less than the amount that the incentive payment would have been if the payment had been calculated using any applicable income tax rates in Section 27-7-5 that were in effect before January 1, 2023, then the qualified business or industry also shall receive a grant equal to the difference between such two (2) amounts.

Further, the term "incentive payment," as such term is used in this chapter, shall be deemed to not refer to or otherwise include any grant payment payable to a qualified business or industry pursuant to this subsection.

SECTION 21.

Section 57-62-11, Mississippi Code of 1972, is amended as follows:

57-62-11.

(1) There is created in the State Treasury a special fund to be known as the Mississippi Advantage Jobs Incentive Payment Fund, into which shall be deposited withholding tax revenue required to be deposited into such fund pursuant to Section 27-7-312 and any other monies designated for deposit therein.

The money in the fund shall be used for the purpose of S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 87 making the incentive payments and grants authorized under this chapter.

(2) The Mississippi Advantage Jobs Incentive Payment Fund shall be administered by the Department of Revenue, and monies in the fund, less three percent (3%) to be retained by the Department of Revenue to pay the reasonable and necessary expenses of the Department of Revenue in administering its duties under this chapter, shall be expended pursuant to the approved application.

Amounts in the fund at the end of any fiscal year that are not necessary to make future incentive payments and grants shall be paid into the General Fund.

(3) The liability of the State of Mississippi to make the incentive payments and grants authorized under this chapter shall be limited to the balance contained in the fund.

SECTION 22.

Section 57-99-1, Mississippi Code of 1972, is amended as follows:

57-99-1.

As used in Sections 57-99-1 through 57-99-9, the following words and phrases shall have the meanings ascribed in this section unless the context clearly indicates otherwise:

(a) "Qualified business or industry" means any company and affiliates thereof, pursuant to rules and regulations of the MDA, which is:

(i) A project that has been certified by the MMEIA as a project defined in Section 57-75-5(f)(xxi) and creates at S.

B.

No.

2159 *SS26/R336SG* ~ OFFICIAL ~ 22/SS26/R336SG PAGE 88 least one thousand five hundred (1,500) jobs within sixty (60) months of the beginning of the project;

(ii) A project that has been certified by the MMEIA as a project defined in Section 57-75-5(f)(xxii) and creates at least five hundred (500) jobs within seventy-two (72) months of the beginning of the project;

(iii) A project:

1.