The task at hand is to provide tax incentives to what Gov. Reeves called the “largest development project in Mississippi history.”
Lawmakers gaveled in on Wednesday for a special session called by Governor Tate Reeves.
The company for which the incentives being considered was not named, but Reeves said this would be a $2.5 billion capital investment into the state, creating over 1,000 jobs with an average salary of $93,000.
UPDATE 2:30 pm:
The Mississippi House passed Senate Bill 2001, Senate Bill 2002, and House Bill 1. All bills passed through their respective committees with minimal questions or debate.
SB 2001 and SB 2002 will have been sent to Governor Tate Reeves for his signature to make them law. The Senate gaveled in shortly after the House recessed subject to call and called a finance committee where it is expected they will take up HB 1.
Once HB 1 has passed through the committee the Senate will take take it up on the floor upon reconvening.
RELATED: Reeves calls special session for $2.5 billion capital investment project
The Legislature will be tasked with approving the project and other tax incentives that are part of the agreement with the business.
Highlights of the incentive package include:
- Tax credit for corporate income tax for 15 years
- 3.5% gross payroll tax rebate for 10 years
- Sales and use tax exemption to construct and equip the facility
- $29 million for public infrastructure
The total ask of incentives and investment from the state is $246,798,000.
Senator @briggs_hopson provides insight on the two pieces of legislation that were passed through the Senate this morning concerning the new economic development project. #msleg pic.twitter.com/1RzZti9xCu
— Yall Politics (@MSyallpolitics) November 2, 2022
The company’s capital investment will include land acquisition and construction costs that will begin immediately. There is a penalty and suspension phase that requires the business to meet certain benchmarks for jobs and investment or they will be required to pay the state back certain dollars or forgo tax credits.
The $246 million investment from the state includes $18 million to the county to finish purchasing the land that will be used for the site, $45 million in a reserve account, $1 million for the Mississippi Development Authority (MDA) to administer the project, $250,000 required by law for the State Auditor’s office and a Bond agreement of $2.4 million.
There is also a $25 million investment in roads coming from the state, as well as $1.6 million from the county for water and sewer improvements.
Senator Josh Harkins said they will be speeding up the bidding process for water, sewer and road contracts.
“This overall project has the capability of injecting a large GDP into our state. This is a pretty good opportunity for our state,” said Harkins.
Sen. @SenatorHarkins addresses some concerns about the secrecy surrounding the company that is involved in the project. That name has not officially been released yet by MDA. #msleg pic.twitter.com/9bcU9pAnfs
— Yall Politics (@MSyallpolitics) November 2, 2022
Both the House and Senate are presenting two bills to address the project – SB2001, SB2002, HB 1 and another bill yet to be released.
The Senate passed their bills for the project through committee by mid-morning and then went to the floor where it passed and was sent over to the House.
The House recessed until 1:00pm to make some changes to their bill and are expected to take it back up after lunch.
Read the full call to session from Governor Reeves via Mississippi Statewatch:
Special Session call 2022 by yallpolitics on Scribd
