MFLEX INCENTIVE
From Mississippi Development Guide 2023
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Handle State Tax Liabilities Your Way

A new state incentive program flexes its muscle.

MFLEX INCENTIVE
by MARK AREND
S

ince April 2022, companies considering a Mississippi location for their operations have had another reason to do so. That’s when the state introduced the Mississippi Flexible Tax Incentive, or MFLEX, which lets capital investors offset certain state tax liabilities over a period of 10 years.

The Mississippi Development Authority (MDA), which administers the incentive, says “MFLEX eliminates the need for multiple applications for incentive programs, and it provides greater transparency to companies and state stakeholders regarding the value of credits awarded.”

To qualify for MFLEX companies must plan to invest at least $2.5 million and create 10 or more jobs. Companies in manufacturing, data and information processing, logistics, telecommunications and air transport and maintenance, among other industries, are eligible to apply for the incentive. 

To date, 50 companies have been certified for MFLEX. One is CORE X GULFPORT, which announced plans in February to invest more than $73 million in a 150,000-sq.-ft. cold storage facility at the Port of Gulfport. The company says it will create 48 jobs in its first year of operation and 25 more the following year. 

mflex infographicInfographic courtesy of MDA

Another is Skydweller Aero, which builds solar-powered, unmanned aircraft (see the Aerospace report in this guide). The Oklahoma City-based aerospace company is investing $15 million and will create more than 30 jobs at Stennis International Airport at Stennis Space Center in Hancock County.

“MFLEX can be used to offset corporate income tax, sales and use tax, and employee income withholding tax,” says Sara Watson, MDA’s director of business incentives. “Sales and use tax and withholding tax have been the primary use of the MFLEX credit so far.”

How is MFLEX going over with location experts?

“MDA has continued to receive positive feedback on the flexibility and benefits of the program from site selection consultants, tax professionals and companies,” says Watson. “One specific project did state it made its location decision largely based on the incentives offered by the state. The company is not only moving its manufacturing operations, it also is moving its research and development efforts to Mississippi as a result of the MFLEX incentives offered, as well as other benefits, such as the cost of doing business in Mississippi.”

The above graphic from MDA explains the process for applying for the MFLEX incentive. 

Mark Arend
Editor Emeritus of Site Selection magazine

Mark Arend

Mark Arend is editor emeritus of Site Selection, and previously served as editor in chief from 2001 to 2023. Prior to joining the editorial staff in 1997, he worked for 10 years in New York City at Wall Street Computer Review, ABA Banking Journal and Global Investment Technology. Mark graduated from the University of Hartford (Conn.) in 1985 and lives near Atlanta, Georgia.

 

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