RURAL ECONOMIC DEVELOPMENT ASSISTANCE PROGRAM

Companies financing projects through the Small Enterprise Development or Industrial Revenue Bond Programs which are administered by MBFC are eligible to participate in the Rural Economic Development Assistance Program.  The program allows these companies to receive credits on Mississippi corporate income taxes and assess new employees job development fees to offset annual debt service on the bonds.

Mississippi corporate income tax credits will be granted at the end of a company's fiscal year and will be based on the Mississippi tax liability at that time.  The amount a company will be required to pay in Mississippi income tax will be reduced by the amount of debt service paid during the tax year.

Employees whose gross wages are minimum wage or more per hour may be assessed a certain percentage of gross wages per hour up to a maximum of 6%. These employees will receive credits on their Mississippi personal income taxes in an amount equal to the assessment.  The total amount of tax credits and assessments may not exceed the annual debt service on the bond issue.  Only employees whose jobs are created as a direct result of the project may be assessed.