House Bill 502 Summary

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

• Municipalities must meet criteria of unemployment at least 200% of state average or 30%+ population at federal poverty level to apply to Mississippi Development Authority for designation and certificate of convenience and necessity.

• Approved business enterprises in designated municipalities receive 10-year exemptions from local ad valorem taxes, state income tax, franchise tax, and sales/use tax on construction materials and equipment through December 31, 2023.

• Establishes the Economically Distressed Municipalities Assistance Program providing loans up to $150,000 to small businesses with fewer than 50 employees or less than $1 million net worth for land, buildings, equipment, inventory, and working capital.

• Authorizes issuance of up to $10 million in state general obligation bonds by July 1, 2016 to fund the assistance program, with proceeds deposited into a special fund for loan disbursement.