Equity Investment Tax Credit Program

Mississippi Development Authority

Program Type:

Tax Incentive

Eligible Geography:

Mississippi

Summary:

The New Markets Credit allows a credit for income, insurance premium, or premium retaliatory taxes to investors in eligible equity securities issued by a Qualified Community Development Entity that has entered into an allocation
agreement with the Community Development Financial Institutions Fund of the U.S. Treasury Department (CDFI) with respect to federal income tax credits authorized by the Federal NMTC Law, which includes the State of Mississippi in the service area outlined in such agreement. This Qualified Community Development Entity is commonly referred to as a “CDE”. The CDE must use eighty-five percent (85%) or more of the proceeds of the issuance of the equity security to make investments that are Mississippi Qualified Low-Income Community Investments (MQLICIs), and those investments must be maintained for a minimum of seven (7) years. A MQLICI is an investment in Mississippi in a business that meets the requirements of a Qualified Active Low-Income Community Business (QALICB) or an investment in Mississippi approved
as a Qualified Low Income Community Investment under the Federal New Markets Tax Credit law. A security meeting these requirements is commonly referred to as a “QEI”. Mississippi Development Authority will review the QEI to determine if it qualifies for the Mississippi New Markets Credit. If the QEI does qualify, MDA will issue a certification of credits allowed.

Eligible Recipients:

Non-Profit Organization; For-Profit Business

Eligible Recipients Detail:

Investors that invest in securities from a qualified community development entity (CDE) are eligible for tax credits.

Eligible Purpose:

Building Connectivity; Last Mile Connectivity

Eligible Purpose Detail:

The CDE must use eighty-five percent (85%) or more of the proceeds of the issuance of the equity security to make investments that are Mississippi Qualified Low-Income Community Investments (MQLICIs), and those investments must be maintained for a minimum of 7 years. The amount of the credit shall be equal to the applicable percentage of the investment in the CDE for the qualified equity investment (QEI). A MQLICI is an investment in Mississippi in a business that meets the requirements of a Qualified Active Low-Income Community Business (QALICB) or an investment in Mississippi approved as a Qualified Low Income Community Investment under the Federal New Markets Tax Credit law.

Source:

https://www.novoco.com/resource-centers/new-markets-tax-credits/state-nmtc-programs#ms