HB 907 Summary

• Creates the "Economically Distressed Municipalities Development Act" authorizing the Mississippi Development Authority to designate municipalities with populations under 20,000 that lost 10% of population since 1980 and meet unemployment or poverty criteria as economically distressed municipalities

• Grants approved business enterprises locating or expanding in designated municipalities a 10-year exemption (until December 31, 2031) from state income tax, franchise tax, sales tax on equipment/materials, and local ad valorem taxes (excluding school and emergency services portions)

• Establishes the Economically Distressed Municipalities Assistance Program to provide loans up to $150,000 to approved small businesses (under 50 employees or $1 million net worth) for land, buildings, equipment, inventory, and working capital with terms up to 15 years

• Authorizes issuance of up to $10 million in state general obligation bonds (by July 1, 2024) to fund the assistance program

• Amends tax code sections to conform franchise tax and sales tax provisions to the new exemptions for approved business enterprises in economically distressed municipalities