How much is the Mississippi Jobs Tax Credit?
Mississippi Department of Revenue / Mississippi Development Authority
2.5%–10% of new-job payroll
Researched for this program: 5 rejection traps · 5 required documentsWhat decides this award ↓
The Mississippi Jobs Tax Credit is 2.5%, 5% or 10% of the payroll of each net new full-time job, depending on the county's tier, for five years. You need at least 20, 15 or 10 new jobs in one year to qualify.
Mississippi's Jobs Tax Credit (JTC) is the state's primary SMB-accessible tax incentive, providing a non-refundable income tax credit of 2.5%, 5% or 10% of the payroll of each net new full-time job created and maintained in Mississippi, for five years, by county tier. The credit can offset up to 50% of the Mississippi income tax attributable to in-state operations in a year, and unused amounts carry forward 5 years. Rates are higher in less-developed counties. Mississippi has no general R&D tax credit like the federal one (only the narrower R&D Skills credit) — the Jobs Tax Credit is the most impactful and broadly available state income tax incentive for SMBs.
- Funding type
- Tax Credit
- Level
- State
- Amount range
- 2.5%–10% of new-job payroll
- Realistic amount
- The credit is 2.5% (Tier One), 5% (Tier Two) or 10% (Tier Three) of the payroll of each qualifying new job, allowed for five years starting in year 2 after the job is created.
- Deadline
- Rolling — claimed annually on Mississippi income tax return for each year new jobs are maintained
- Status
- active
- States
- MS
- Payment model
- tax offset
Who qualifies
- Must create and maintain net new full-time jobs in Mississippi, meeting a county-tier minimum within one year: 20 net new jobs in Tier One (most developed) counties, 15 in Tier Two, 10 in Tier Three (least developed)
- Full-time jobs defined as positions providing at least 35 hours per week with Mississippi-mandated benefits (typically health insurance)
- Business must be engaged in manufacturing, warehousing/distribution, data/research processing, corporate/regional headquarters, or technology-intensive services to qualify for standard rates
- Rates and job minimums depend on the county tier: 2.5% of payroll with 20 new jobs (Tier One), 5% with 15 (Tier Two), 10% with 10 (Tier Three)
- Enterprise Zone designation requires pre-approval from MDA before job creation begins
- Annual certification of continuing job maintenance required — jobs lost after the credit year reduce or eliminate future credit eligibility
- Must file Mississippi income tax return (applicable to corporations, S-corps, LLCs, partnerships, and sole proprietors with Mississippi income)
- Note: Mississippi has no general R&D tax credit like the federal one (only the narrower R&D Skills credit) — the Jobs Tax Credit is the primary income tax incentive for most SMBs
More questions about the credit
How many new jobs does it take?
At least 20 net new full-time jobs in a Tier One county, 15 in Tier Two or 10 in Tier Three, all created within one year.
Mississippi ranks its counties every year on unemployment and per capita income, one third of them in each tier, so a county's tier can change. Jobs can't be added up over several years to reach the minimum. Part-time jobs can't be combined into a full-time one, and the employees must be subject to Mississippi withholding tax. Businesses in a certified economically distressed community can instead claim 10% of payroll with at least 10 new full-time jobs.
How much is that in dollars?
It is a share of the new jobs' payroll, so 50 new jobs with $2.5 million in payroll in a Tier One county earn $62,500.
That example comes from the Mississippi Department of Revenue's incentive booklet. The same credit amount is available in each of five years, starting in the second year after the jobs are created. In a Tier Three county the same payroll would earn four times as much, since the rate is 10% instead of 2.5%.
Can it wipe out my state income tax?
No. The credit can offset up to 50% of the Mississippi income tax from your in-state operations in a given year.
That 50% limit applies to the Jobs Tax Credit together with the headquarters credits and the Research and Development Skills credit. A credit you can't use in the year it is earned carries forward for five years. Because the limit is a share of tax owed, a business with little Mississippi income tax may use the credit slowly.
Which businesses qualify?
Manufacturers, processors, distributors, wholesalers, warehouses and research and development businesses qualify; the department's list does not include retail or restaurants.
Software, data processing, telecommunications and other technology-intensive businesses need a designation from the Mississippi Development Authority before they can take the credit. A business that uses the MDA Job Training Grant Fund can't also claim it. The credit is not available if you only move jobs from one Mississippi location to another without adding any.
What if I'm under the job minimum?
Then this credit does not apply, but other state and federal programs may fit a smaller hiring plan.
Compare the Mississippi Research and Development Skills Tax Credit, the Mississippi Advantage Jobs Program and the federal Work Opportunity Tax Credit. Mississippi also has more state options on the Mississippi small business grants page.
What it covers
Eligible expenses
- Net new full-time W-2 positions (35+ hours/week, employer-provided benefits) created in Mississippi
- Jobs in qualifying industries: manufacturing, warehousing/distribution, data/research processing, corporate headquarters functions, technology-intensive services
- Jobs maintained in enterprise zones (pre-approved; higher credit rate)
Ineligible expenses
- Retained existing jobs (only net new jobs above baseline qualify)
- Part-time positions (fewer than 35 hours per week)
- Contract workers and 1099 independent contractors
- Retail, restaurant, or personal services jobs (excluded industry categories)
- Jobs relocated from another Mississippi location (relocation credits may apply separately)
- Jobs that are eliminated: the credit covers jobs created and maintained
How to apply
-
1
Determine credit rate and pre-approval requirements
Check which county tier your business location falls in (Tier One 2.5% of payroll, Tier Two 5%, Tier Three 10%) and whether it is an economically distressed community (10%). Enterprise zone designation requires pre-approval from the Mississippi Development Authority before jobs are created. Contact MDA to confirm your county's classification.
~2 hrs
-
2
Track net new full-time job creation
Establish a baseline employee count at the start of your first credit year. Net new jobs are the increase above your baseline — retaining existing employees does not generate new credits. Track full-time status (35+ hours/week with benefits) for each new hire throughout the credit year.
~3 hrs
-
3
Claim the credit on your Mississippi return
File the credit claim with your Mississippi income tax return. Document the number of net new full-time jobs created and maintained, the applicable county-tier rate, and any carryforward from prior years. Attach payroll records confirming job count and full-time status.
~3 hrs
-
4
Apply credit and track carryforward
The credit can offset up to 50% of the Mississippi income tax attributable to in-state operations in a year. Unused credits carry forward for up to 5 years. Maintain a vintage-year carryforward schedule and apply oldest credits first each year.
~2 hrs
-
5
Certify job maintenance annually
The credit is renewable each year that the net new jobs are maintained. Submit annual documentation of continued employment. If net new jobs fall below the required minimum in a subsequent year, the credit is lost for that year; it resumes if the minimum is met again within the original five-year period.
~2 hrs
Mississippi has no general R&D tax credit like the federal one (only the narrower R&D Skills credit) — the Jobs Tax Credit is the primary SMB-accessible income tax incentive. For tech companies, hiring engineering staff in Mississippi earns a credit of 2.5%–10% of each new job's payroll for five years while the jobs are maintained, making it a durable multi-year benefit as the company grows.
Deadline & timing
Claimed with the Mississippi income tax return. Mississippi corporate income tax returns are due March 15 (for calendar-year C-corps) or the 15th day of the 3rd month after fiscal year end. The credit continues each year that the net new jobs are maintained — businesses must annually certify job retention.
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Programs that stack well
- Federal Work Opportunity Tax Credit
- Research & Development Tax Credit (Section 41)
- SBA 7(a) Loan Program
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Last updated October 30, 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.