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While Mississippi doesn't have an R&D credit that mirrors IRC Section 41, a credit is allowed under the Strengthening Mississippi Academic Research Through Business Act (SMART). The credit provides for a rebate for expenses, including those from investors incurring qualified research costs subject to a research agreement and employment expenses for R&D staff.
The Academic Research Investor Rebate is equal to 25% of an investor's qualified research costs, up to a maximum rebate of $1 million per investor per fiscal year and a maximum total rebate of $5 million for all investors per fiscal year. To obtain this rebate, investors must submit an application to the board of Institutions of Higher Learning (IHL) in Mississippi.
The Research and Development Skills Tax Credit is equal to an annual credit of $1,000 for each new full-time employee in any new job requiring research and development skills (such as a chemist or engineer). This hiring credit is applicable for the first five years of employment. The credit is available to most companies regardless of the industry in which it engages; however, no business enterprise for the transportation, handling, storage, processing, or disposal of hazardous waste is eligible to receive this credit.
To apply for this credit:
R&D Tax Credit Available:
C-Corporations, S-Corporations, LLCs, Partnerships
Deadline for Tax Filing:
Data Required to Compute Credit:
A business interested in qualifying for the Research and Development Skills Credit should request approval in writing and provide the following information for each employee and position.
In order to receive the Academic Research Investor Rebate, the investor must submit the SMART Business Incentive Form, as well as proof of payment to the college or research corporation, a copy of the SMART Business certificate, a copy of the research agreement, and any other documentation requested by the Department of Revenue.
The Research & Development Skills Credit utilization is limited to 50% of the Mississippi Income Tax liability per year.
To get an estimate of the potential value of your unclaimed R&D Tax Credits, try out our credit calculator.
Download our R&D Tax Credit Calculator for Android to see how much you can receive from your qualified R&D tax credit expenses.