MBFC Program Incentives

MBFC Incentive Data Form. Let us help!

MBFC offers a variety of incentives to help reduce capital requirements to eligible Mississippi businesses. For an incentive estimate and more information please fill out and submit the MBFC Project Data Form.

 

100% Sales and Use Tax Exemption

A 100% sales and use tax exemption is available for eligible businesses that have qualified under the MBFC Incentive Program.

Rural Economic Development (RED) Tax Credit

An income tax credit is available to companies qualified under the MBFC Incentive Program. Credits are based on the amount of qualified annualized debt service. Credits can be used to offset up to 80% of a company’s state corporate income tax liability each year for the life of the qualified debt.

Tax-Exempt Interest Rate Access

Under the Internal Revenue Code, certain for-profit entities and Section 501(c)(3) organizations can finance their projects with tax-exempt bonds, but these entities cannot do so directly. They must borrow through a “conduit” issuer of bonds in order to receive the tax-exempt financing. Therefore, entities do not borrow from MBFC, but rather through MBFC, using MBFC as access to lower cost capital via tax-exempt rates.

up to 10-Year Property Tax Exemption

All projects qualified through the Mississippi Business Finance Corporation Incentive Program are eligible for an exemption from property taxes on land, buildings and equipment for up to 10 years. The exemption is offered at the discretion of local governing authorities and may be granted for all local ad valorem taxes except school district taxes. It may not be granted on finished goods or rolling stock.