Financial Incentives for Brownfield Redevelopment
The
Mississippi Economic Redevelopment Act promotes redevelopment by providing an incentive to defray the
remediation costs associated with cleaning up contaminated property.
Counties and/or municipalities that contain properties with
environmental contamination must first approve a remediation project
area within its jurisdiction. After approval of the remediation plan by
MDEQ and the project by the Mississippi Development Authority (MDA),
all State sales, income and franchise taxes collected from businesses located
in the redevelopment project area would be deposited into a special fund
that would be used to reimburse developers for approved cleanup costs.
Reimbursement to developers would be made semi-annually for a period of
up to 15 years, with a
maximum distribution to the developer of two and a half times the allowable remediation cost.
The
Mississippi Brownfields Voluntary Cleanup and Redevelopment Incentives Act contains
a number of financial incentives for property owners and local
governments to clean up and redevelop brownfield properties.
- For the Private Sector, the Incentives Act provides an income tax credit
for a property owner equal to 25% of the costs of remediating a
brownfield property, with the annual credit capped at $40,000, and the
total credit not to exceed $150,000. Any unused portion of the tax
credit may be carried over into succeeding tax years. In lieu of the
state income tax credit, the property owner may claim a job tax credit
for each new employee created as a result of the cleanup and
redevelopment of a brownfield site.
- For City or County Owned Properties, the Act expands eligible projects for financial assistance under the Local Governments Capital Improvements Revolving Loan Program under the jurisdiction of the Mississippi Development Authority to include remediation of brownfield sites.
