MS HB1676

Businesses beginning operations in Mississippi on or after January 1, 2023, qualify as "eligible new businesses" for reduced income tax rates over their first five years of operation

Year 1: First $250,000 of taxable income is exempt from income tax; amounts above taxed at 4%

Years 2-4: Graduated reduced rates apply to increasing income thresholds ($500,000 in year 2 at 1%, $750,000 in year 3 at 2%, $1,000,000 in year 4 at 3%), with income above thresholds taxed at 4%

Year 5 and beyond: All taxable income taxed at flat 4% rate (compared to standard 5% rate for income over $10,000)

Additional income tax deductions authorized for eligible new businesses: 50% deduction on first $250,000 in year 1, decreasing to 37.5% on $500,000 in year 2, 25% on $750,000 in year 3, and 12.5% on $1,000,000 in year 4