Mississippi introduced a new incentive for businesses in 2022 called the Mississippi Flexible Tax Incentive (MFLEX). It’s a universal tax credit that can be used to offset companies’ state tax liabilities other than property taxes, which are levied at the local level. It was developed by the state, in consultation with economic development partners, to make state incentive offerings more robust, streamlined and more competitive.
“MFLEX has been particularly attractive to businesses that may not have been able to utilize other types of tax credits.”
— Sara Watson, Director of Business Incentives at MDA
MFLEX is designed for companies creating 10 or more new jobs or investing at least $2.5 million in Mississippi. It can be used to offset such tax liabilities as state income, sales and use, franchise and payroll withholding. Part of the incentive’s appeal is its ease of use. Applicants submit one form to the Mississippi Development Authority (MDA) and report annually to the agency so that credits can be based on actual investment, jobs created and wages paid. MFLEX credits can be claimed over a period of 10 years.
Sara Watson, director of business incentives at MDA, says businesses’ and site consultants’ reactions to MFLEX have been extremely positive. “MFLEX has been particularly attractive to businesses that may not have been able to utilize other types of tax credits and exemptions that they may be eligible to earn due to new job creation,” she explains. “But in practice, however, they aren’t using them due to the nature of their state tax liabilities.” The flexibility of MFLEX has been attractive to all industries across the board. Additionally, it has been specifically attractive to distribution center projects that did not qualify for some tax incentive benefits under the state’s traditional tax incentive programs.”
