MS HB1694

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 and meet unemployment or poverty thresholds.

Authorizes approved business enterprises in designated economically distressed municipalities to receive 10-year exemptions from state income tax, franchise tax, and sales tax on construction materials and equipment, plus local ad valorem tax exemptions (subject to local and county consent).

Establishes the Economically Distressed Municipalities Assistance Program providing loans up to $150,000 to small businesses with fewer than 50 full-time employees or less than $1,000,000 in net worth, with loan terms ranging from 3 to 15 years depending on use.

Authorizes issuance of up to $10,000,000 in state general obligation bonds by July 1, 2021, to fund the assistance program, with proceeds deposited into a dedicated Economically Distressed Municipalities Assistance Fund.

Amends Mississippi tax code sections to exclude approved business enterprises in economically distressed municipalities from franchise tax and adds sales tax exemptions for component building materials and equipment used in initial construction or expansion of facilities in these municipalities.