HB 1547 Summary

• Creates the "Economically Distressed Municipalities Development Act" to provide tax incentives and loans for businesses locating or expanding in economically distressed municipalities with populations under 20,000 that have lost at least 10% of population since 1980 and meet unemployment or poverty criteria.

• Provides approved business enterprises in designated economically distressed municipalities with exemptions from local ad valorem taxes, state income tax, franchise tax, and sales/use tax on component materials and equipment for 10 years or until December 31, 2022, whichever occurs first.

• Establishes the Economically Distressed Municipalities Assistance Program administered by the Mississippi Development Authority to provide loans up to $150,000 to small approved business enterprises (under 50 employees or $1 million net worth) for land, buildings, equipment, inventory, and working capital.

• Authorizes the issuance of up to $10 million in state general obligation bonds to fund the loan program, with bond issuance authority expiring July 1, 2015.

• Exempts businesses from the franchise tax when operating in economically distressed municipalities and provides sales tax exemptions for component materials and equipment used in construction or expansion of facilities in such municipalities.