The economic development bill streamlines incentives that will impact and aid in economic growth for Mississippi.
The bill creating MFlex authored by Senate Economic and Workforce Development Chairman David Parker (R) was passed last week and now heads to the Governor for consideration.
MFlex established under SB 2159 allows a tax credit against any state tax liability and combines several current incentives aimed at spurring economic development into one simplified option.
The amount of the tax credit is calculated by considering the business’s investment in equipment and infrastructure, the number of full-time jobs created, and wages and benefits paid out to employees.
“This program, which streamlines incentives to spur economic growth, has been several years in the making. The hard work of Chairman Parker and so many of our local economic developers have seen it through to fruition,” Lt. Governor Delbert Hosemann said. “As a performance-based—not promise-based—program, MFlex will make Mississippi even more competitive in the region.”
In order to participate in MFlex, a business must create at least 10 full-time jobs and have a capital investment of $2.5 million. Those that do qualify for the program must report the amount of investment, jobs created, average wage of employees, benefits provided and other information to the public.
Senator Parker said he and Senate leadership were waiting to see what kind of state income tax cut would come from the 2022 session before making a move on MFlex since the incentive is largely based off of that.
“I would think that any new business or any expansion of business will look at MFlex now as maybe the first consideration they give,” said Sen. Parker.
Parker said he feels confident that Governor Tate Reeves will approve the legislation as this seems to be a priority for Lt. Governor and Governor as well Speaker of the House Philip Gunn.