lntroduction

Overview of Economic Development lncentives

The State of Mississippi is open for business, and the Mississippi Development Authority (MDA) consistently works with prospective and existing companies to address their specific site location and expansion needs. ln today's global economy, incentives are necessary - indeed, vital - to successful economic development. Mississippi, like all other states in the United States, offers business incentives to help facilitate growth. To that end, MDA is entrusted with overseeing taxpayer dollars and ensuring that grants, loans, tax exemptions, rebates, and abatements are all wisely awarded to qualifying industries and produce a return for the state.

ln addition to financial incentives, MDA works to meet businesses' needs by making introductions to other companies, assisting with permitting issues, coordinating workforce training, and helping to identify available site locations in the state. This assistance is mutually beneficial for both corporate citizens and the state and requires limited taxpayer resources to stimulate investment and job creation. Financial incentives help Mississippi compete for economic development projects. Nonetheless, offering state incentives does not make a potential economic development project a good project for the state. lnstead, incentives are
offered to make a promising project a reality. When planning to locate a new enterprise, it is common practice for business prospects to work with multiple states. Each state has its own extensive incentive programs to entice investment to its respective state. Thus, competitive incentives are a necessary component of Mississippi's economic development and growth strategies and are critical to maintaining the state's position as a strong contender for high quality job creation.

As projects are identified and opportunities are created, the MDA team begins by promoting the value of a Mississippi
location, sharing information about the state's competitive wages, pro-business climate, plentiful energy resources, and strong transportation network with prospects. As the process moves foruvard, the specific needs of each particular project are determined. A clear understanding of the company's business model, financial status, and key decision drivers all help shape Mississippi's incentive package. ln addition, a strong commitment by the local community also helps define the level of commitment made by the State. The volatile state of the global economy has significantly affected competitive drivers in economic development. Many businesses are now evaluating where to maintain and grow their operations. With high unemployment rates and limited economic growth, states and communities throughout the Southeast are competing with countries around the world for new jobs and investment. To be successful in winning projects, MDA must understand companies' workforce training needs and physical site requirements, while also providing information about the operational cost benefits of a Mississippi location, including the state's business tax structure, competitive energy and labor costs, and transportation
offerings.

ln order to effectively compete for economic development projects in this global market, a strong, diverse array of incentives are needed. lncentives usually are provided in the form of infrastructure assistance, workforce training, and tax reductions, but they may also include assisting with business relocation costs.
This document is intended to provide a summary of MDA programs used to encourage economic and community development. Each project is different, and many factors are considered while developing an incentive package. ln all
cases, MDA strives to meet businesses' needs as economically as possible. As a point of reference, a significant range in the value of incentives provided per job created or dollar invested will be evident. This variance is to be expected and is appropriate due to the diverse needs of companies and the extent to which infrastructure and workforce development offerings vary throughout the state.

As illustrated in the reporting tables and program results, incentive offerings are producing a positive return for
Mississippi.

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Making a Difference in the State through Grants and Loans

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Summary of lncentives Report Gontents

A number of programs have been legislated to encourage economic development in the state. lncentive programs include grants and loans to local governments for infrastructure and other community development improvements,
capital programs, incentives paid directly to businesses, tax reductions and exemptions, and training resources. These programs are administered by several different agencies within the State.

This report provides summaries of key programs that MDA utilizes in recruitment, information on the ten primary loan and grant programs most used by the agency and the four incentives that MDA administers for rebates or tax
abatements. lnformation provided by the Department of Revenue is included for clarity.

Page

Awarded Summary of Report Gontents

Map of Grants and Loans Tax lncentive Programs
Sales and Use Tax

......................2 .............3

Exemptions.

.................... 7-8

Grant and Loan Programs

Ac1.............. Fund........... Job Protection Grant and Loan Program Development lnfrastructure Program.. Economic Development Highway Program
Mississippi Major Economic lmpact

................ 10
....."...^ 11

lndustry lncentive Financing Revolving

...14-15
....... 15-16

........................ 17

Community Development Block Grant Program (federally

funded).......

................21-22 ................23

Summary of Key

Programs

Tax Rebates and lnvestment Gredits

Advantage Jobs Rebate

Program...... Motion Picture Rebate Program Mississippi lnvestment Tax Credits

........24-25 .....,..........26-27 ...........28-29

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Types of lncentives
State Tax Credits and Exemptions
A number of credits to state income tax exist, as well as exemptions from franchise and sales/use tax. These incentives are maintained by the Department of Revenue (DOR), and since these incentives are taken on the businesses' tax returns, the actual cost of these incentives is not available on a project by project basis. The DOR prepares a summary of the total use of several of these credits, but that information is not yet available for FY 2012. The table below summarizes these programs.

Table

1: Mississippi Income, Franchise, and

Program

Sales/Use Tax lncentives

Eligible lndustries
Manufacturers, processors, distributors, wholesalers, research and development facilities, warehouses, air transportation and maintenance facilities, movie industry studios, telecommunication enterprises, data or information

lncentive Value
An income tax credit is available for a five (5) year period equal to a percentage of payroll for each newly created job of an eligible business. A minimum number of jobs must be created to receive the credit.

Revenue

Source
Foregone Revenue

Jobs Tax Credit

processing operations, computer software developers, any technology intensive facility, recreational facilities that impact tourism, and final destination or resort hotels with more than 150 guest rooms
National or Regional Headquarters Tax Credit

A minimum of twenty (20) new headquarters jobs must be created to receive the credit.

An income tax credit is available for a five (5) year period for each position assigned to the national or regional headquarters of a business created in or transferred to Mississippi. The credit is $500 for each new full-time employee, $1,000 for each new full{ime employee whose salary is one hund red twenty-five percent (1 25%) of the average annual state wage, or $2,000 for each new full-time employee whose salary is two
hundred percent (200%) of the averaoe annual state waoe. An income tax credit is available for a five (5) year period equal to $1,000 per year for any position requiring research or development skills.

Foregone Revenue

Research and Development Skills Tax Credit

Any position requiring research or development skills

Foregone Revenue

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Program
Skills Training Tax Credit

Eligible lndustries
Man ufacturers, processors,

lncentive Value
An income tax credit is available equal to the expense of providing skills training to Mississippi
employees.

Revenue

Source
Foregone Revenue

distributors, wholesalers, research and development facilities, warehouses, air transportation and maintenance facilities, movie industry studios, telecommunication enterprises, data or information processing operations, computer software developers, any technology intensive facility, recreational facilities that impact tourism, and final destination or resort hotels with more than 150 guest rooms

Mississippi Business Finance Corporation (MBFC) Revenue Bond Debt Service (RED) Tax Credit Ad Valorem Tax Credit

Manufacturing, telecommunications, data processing, distribution or warehouse facilities within this state

An income tax credit is available equal to the debt service on industrial revenue bonds issued by the Mississippi Business Finance
Corporation (MBFC) under the Mississippi Rural Economic Development Assistance Program for approved businesses receiving such bonds. An income tax credit is available equal to the ad valorem taxes on the inventorv of elioible businesses An income tax credit equal to onehalf (%) of the expenses of providing dependent day care for employees is available for day care which is certified by the Mississippi Department of Health. An income tax credit is available equal to the charges a business pays for exporting cargo through certain Mississippi oorts. An income tax credit is available equal to the charges an eligible business pays for importing cargo (except for forest products) through certain Mississiooi oorts. An income tax credit is available equal to the charges a business pays for utilizing certain Mississippi airport facilities for the import or export of carqo. An income tax exemption is available for a period of ten (10) years for certain businesses locating in a GAP area.

Foregone Revenue

Man ufacturers, processors, distributors, wholesalers, or retailers

Foregone Revenue Foregone Revenue

Child/Dependent Care Tax Credit

Allbusinesses

Export Port Charges Tax Credit

Businesses that utilize port facilities at Mississippi state, county and municipal ports or harbors

Foregone Revenue

lmport Port Charges Tax Credit

Business must have at least five

permanent fulltime employees, and have a minimum capital investment of $2,000,000 in Mississippi. Businesses that utilize airport facilities in Mississippi

Foregone Revenue

Airport Cargo
Charges Tax Credit

Foregone Revenue

lncome Tax Exemption for Growth and Prosperity Areas Broadband

Manufacturers, processors, distributors, wholesalers, research and development facilities which will create at least ten (10) jobs Telecommunications businesses

Foregone Revenue

An income tax credit is available

based on a percentage of the cost of equipment used in the deployment of broadband technolooy.

Technology lncome Tax Credit

Foregone Revenue

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Program
lnvestment Tax Credit

Eligible Industries
Manufacturers

lncentive Value
An income tax credit is available equal to five percent (5%) of the eligible investment made by manufacturers that have been in business in Mississippi for more
than two (2) vears.

Revenue

Source
Foregone Revenue

New Markets Credit

Qualified community development entities

An income tax, insurance premium

tax, and/or a premium retaliatory tax credit equal to a percentage of the adjusted purchase price paid to the Qualified Community Development Entity for the Qualified Equity lnvestment. An income tax exemption is available for a ten (10) year period.

Foregone Revenue

lncome Tax Exemption for Clean Energy Enterprises

Clean energy business enterprises with a minimum capital investment of fifty million dollars ($50,000,000) and the creation of two hundred fifty (250) new, fulltime jobs. The clean energy business enterprise must manufacture or assemble systems or components used in the generation of clean enerov. Businesses which manufacture or assemble products for use in the aerospace industry or that provide research and development or training services to the aerospace industry. The business must invest a minimum of thirty million dollars ($30,000,000) and create at least one hundred (100) new, fulltime jobs in Mississiooi. Entertainment facility shall include a theater, amphitheater, golf course, automobile racetrack, museum, zoo, arena, stadium, or similar venue.

Foregone Revenue

lncome Tax Exemption for

An income tax exemption is available for a period of ten (10)

years.

Foregone Revenue

Aerospace lndustry
Enterprises

Entertainment District lncentive

Franchise Tax Exemption for Growth and Prosperity Areas Broadband

Manufactu rers, processors,

distributors, wholesalers, research

and development facilities which will create at least ten (10) jobs

An income tax incentive in the form of a five (5) year accelerated depreciation period is provided for construction and renovation projects of an entertainment facility in a Mississippi entertainment district. A franchise tax exemption is available for a period of ten (10) years for certain businesses locating in a GAP area.
A franchise tax credit is available based on a percentage of the cost of equipment used in the deployment of broadband technoloov.

Foregone Revenue

Foregone Revenue

Telecommunications businesses

Technology
Franchise Tax Credit

Foregone Revenue

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Date 2011 Enersteel Eco-Elite

Gompany

County
Adams Neshoba Yalobusha

lncentive Amount Awarded

$150.000 $15,000 $15,000 $75.000 $200.000 $36.320 $22.000 $20,000 $200,000 $5,000.000 $ 27,802,820

Jobs
75 25 35
11

lnvestment Gommitted
$7,000,000 $4,500,000 $512.268 $ 21,000 $17.400.000 $3.000.000 $31.200 $380,000 $10,000.000 $27.300.000 $ 1,202,730,960

2012 2012 2012 2012 2012 2012 2012 2012 2012

Allied Grouo Ansell- Hawkeve il-vr

Sealed Air Corporation

Webster
Oktibbeha Grenada Alcorn

100 10 15

Avrshire Electronics
Laclede Chain Delohi Automotive Nissan North America

Warren
Lincoln Madison

I
1000

TOTAL AGE AWARDS

5,411

** The Schulz Xtruded Products project represents a total corporate investment of $300,000,000.

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ACE Fund (557-1-161

The Mississippi ACE Fund is designed for making grants to economic development entities ("Local Sponsors") to assist in funding extraordinary economic development opportunities to promote economic growth in the State of Mississippi. This program is typically used as a "deal closing fund", and is often used when there is significant competition with other states for projects. Typical uses for these funds are the relocation of equipment, specialized training, and leasehold or building improvements. Local sponsors are encouraged to use these grants in connection with other state and federal programs. The State Legislature enacted the ACE Fund during the 2000 Second
Extraordinary Session.

Table

5: ACE Fund Awards since July 1,2009

Company
General Atomics. lnc.

Date

Gounty
Lee Rankin

lncentive Amount Awarded

$100.000 $25,000 $200.000 $50.000 $40.000 $250,000 $50.000 $8.641.500 $200,000 $400,000 $100,000 $275.000 $1.200.000 $200,000 $500.000 $70,000 $40.000 $60.000 $4.300.000 $2,000,000 $1,500.000 $350,000 $200,000 $65.000 $550.000 $193,000 $200,000 $50,000 $60,000 $200.000

Jobs
15

lnvestment Gommitted
$3.900.000 $43,030 $20,000,000 $3.000.000 $4.100.000 $1,529,787

2009 2009 2009 2009 2009 2009

Multicraft lnt., LP Windsor Foods. LP Cardinal Health, lnc. American Contract Bridge
Leaoue Faurecia Automotive

I
250
60 70 60 50 350 30 60 90 175 500 80

Yalobusha
DeSoto DeSoto Bolivar Panola Panola Desoto Lafavette Lowndes DeSoto

2010 2010 2010 2010 2010 2010 2010 2010 2010 2010
2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011

Anderson Technoloqies
GE Aviation

s200.000
$85.000.000 $8,000,000 $1.247.000 $425,950 $5.000.000

Guardian Fiberolass Pavliance. LLC Janesville Acoustics Siemens lndustrv. lnc.

Schulz Xtruded Products

Tunica
Union Hinds Lee Desoto Neshoba Desoto

$300,000,000..
$11,000,000 $12,500,000 $12.600.000 $500,000 $1.400.000

Worthinoton Cvlinder The Helo Productions

Nextep

200
60 60

WPG Americas, lnc.

Alohaoen

200
330 128 350 120
5

Soladiom. lnc.
Schulz Xtruded Products

s133.000.000 $300,000,000..
$5.640.985 $362.200.000 $7.600.000

Tunica
Hinds Lee Harrison Grenada Tate Yalobusha Lowndes Lee Harrison Prentiss

Lockheed Martin
Universal Asset Mqmt. Dupont

Advanced Distr. Products Twin Creeks Tech.

Borq Warner

26 500 115 50
10

s1.665.690
$132.000.000 $18,400,000 $760,000 $750,000 $112.000 $12.050

Sanderson Plumbino
Hvoerion Technoloov Triton

25
'150

Southern Motion

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Mississippi lndustry Incentive Financing Revolving Fund ($57-1-221) The lndustry lncentive Financing Revolving Fund was established in FY2010 to provide a fund that MDA could use to
incentivize projects that create significant opportunities within the state without having to create special legislation each

time a new project was identified. This program allows grants or loans to be awarded to companies or local governments in order to meet the specific needs of the project. The use of the funds is negotiated with the company by MDA, and the revolving nature of the program will hopefully eliminate the need to continually bond for projects. The table below shows all projects for which awards have been made, along with the gross bonding authority, actual
spending to date, number of jobs committed, and investment committed.

Table

4: Mississippi lndustry lncentive

Project Grant Amount

Financing Revolving Fund since lnception

Loan Amount
$0 $40,650,000

Spend to-date s2.841.877

$39,970,608 $75.500,000 $25.000.000

Jobs Committed
306 330 1.000 850 1,000

lnvestment Gommitment
$1

McKesson Corp Soladiqm KiOR Olin Corp. (Winchester) Stion Corp.

s4.000.000
$2,000.000 $25.000.000

15,000,000

$133,000,000 $500.000.000 $75.000.000 $400,000,000 $15.000,000

$75.000,000 $75.000.000

s74.760.199
$7,197,979 $679,785 $3.000.000

Aurora Flight Sciences

Coro Elevance Renewable Sciences Greentech Automotive Nissan Motor Coro. Roxul. lnc. $7.500.000 $1,450,000
$ 46,950,000

$5,000,000 $2,000,000

$11,000,000 $25,000,000

250
300 350 1,090
150

s226.000.000
$60.000.000 $27,300,000 $130.000,000 $1.681.300.000

s5.000.000
$4,525,000
$ 236.175.000

$1,879,292
$o $230.829.740

Total Commitments

5,626

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lllississippi Major Economic lmpact Act ($57-75-l, ef. Seg.)

The Major Economic lmpact Act was created by the Legislature to provide specific incentives for large projects. This special legislation has typically been introduced by the Governor and has been tailored to meet the needs of each entity. Since FY2008, there have been five projects for which special legislation was passed. The table below shows all projects for which special legislation has been initiated within the past five years, along with the gross bonding
authority, actual spending to date, number of jobs committed and created, and investment commitment.

Table

3: Mississippi Major Economic lmpact Act Funding

Project Bonding Authority
Spend

Since July 1, 2008

to-date

Jobs Gommitted
250
1,200 800 500 500

Jobs Greated to-date

Investment Commitment

Biodefense Project (2008) Cooper Tire Company (2009)

$88.250.000 $13,000,000 $25,000.000 $35.100.000 $50,000,000

$0 $13,000,000

0 1.300 0

$450.000.000 $25.000,000 $175.000.000 $300,000,000 $132.000.000

ATK (2009)
Schulz Xtruded Products (2010)

$25.000,000. s15.050.000
$23,800.000

128
0

Twin Creeks Technolosies (2010)

"Repaid in Full

Project Summaries
The Biodefense Project was a federal project that considered a site in Madison County. ln order to remain on the list of potential sites, the state was required to commit funds to necessary infrastructure and project costs. Unfortunately, this project was located in another state. No bonds were ever issued.
Cooper Tire Company is one of the largest manufacturers in Northeast Mississippi. When the company determined that it would close one of its four manufacturing facilities, Mississippi was forced to compete with three other states in order to maintain this facility that employed 1,200. This legislation was passed to make necessary improvements at the facility in order to maintain these valuable jobs.

ATK is an aerospace company that currently has operations in Tishomingo County. ln 2009, ATK had an opportunity to expand its workforce to 800 and to invest $175,000,000 in the Tishomingo facility. Once the bonds were issued, a change in corporate plans moved the manufacturing operations for the project to one of their other facilities outside the state. ATK repaid allfunds received from the state and continues to employ 105 people in Mississippi. Schulz Xtruded Products is a German company that chose Tunica County as the site for its first U.S. manufacturing operation. This pipe manufacturer received a loan of $15,050,000 through Tunica County for the construction of the manufacturing facility, as well as a $20,000,000 loan guarantee for certain manufacturing equipment. Schulz has
begun commercial production and has until 2016 to reach its jobs commitment. Currently, Schulz has 128 employees.

Twin Creeks is a solar panel manufacturer that announced in 2010 it would be locating operations in Tate County. Twin Creeks committed to an investment of $132,000,000 and 500 jobs by 2015. The $50,000,000 loan was separated into two tranches, and the first $25,000,000 in bonds have been issued with funds being used to construct a facility that is owned by the City of Senatobia and to purchase equipment for the facility. Due to market conditions, the company is no longer active. At this time, MDA is working with the company to determine recourse and obtain repayment. With each of these projects, MDA has memorandums of understanding signed by all parties, which contain claw-back provisions for failure to meet jobs and investment thresholds. MDA monitors these projects throughout the agreement period until all obligations are met. Additionally, the state maintains a sole first lien on all assets for which funds are
loaned.

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Grant and Loan Programs

lncentives awarded in the previous section all resulted in foregone revenue. Other incentives, such as grants and loans, require an appropriation of funds, a federal allocation, or the authority to issue bonds in order to fund the programs. That is the case for most grants and loans provided through MDA. This section addresses each of these programs and provides detailed information on the usage of these funds for the past five years. The table below shows
the total grants and loans awarded by year, followed by summaries by program.

Table

2: Mississippi Grant and Loan Funds Utilized

lncentive Program
FY 2012 FY 2011 FY 2010

Grants
CDBG Economic Develooment (Federal) CDBG Public Facilities (Federal) Economic Develooment Hiohwav Emeroencv Solutions (Federal) HOME lnvestment Partnership (Federal) Rural lmpact Fund $9.844.941 $26.661.1 17 $6,250,000 $1,531,317 $12.906.575 $1.490.950 $1.963.127 $7.051.320

s8j47.717
$18,631,871 $3,300,000

$14,731,026
$25,259,661 $2.500,000 $1.466.725 $11.003.162

$1.225.459
$16.611.444 $1.631.028 $1.280.607 $9,220,000

s2.045.326
$5,859,421 $11,531,500

Small Municipal & Limited Population ACE Fund

Loans
Aoribusiness Enterorise Airport & Port Revitalization Business lnvestment Act Capital lmorovements
Enerov lnvestment $15,753,309 $9,886.999 $1,931.480 $6,394.018 $392.473

s22.255.975 s300.000
$13,060,750 $28,500,000 $2,150,000

s16.774.731
$97,200

$16,185,646 $210,000 $12,632,097

Existinq lndustrv Productivitv lndustrv lncentive Financino Fund

Freioht Rail Service Minority Business Enterorise

$12,262.485
$219,000,000 $1,000.000

$745,000 $2.530.820

$2.223.925

$2.328.542 s500.000

Small Business & Existinq Forestrv lndustrv Grants & Loans Job Protection
Develooment
I

$1,925,000
nf

$2.009,250 $4.181,499
$ 330,020,312

$900,000

rastructu re

$5,196.710 $ 159,065,016

$4.872.934 $ 116,729,990

ANNUAL TOTALS

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Program
Sales/Use Tax Exemption for Clean Energy Enterprises

Eligible lndustries
Clean energy business enterprises with a minimum capital investment of fifty million dollars ($50,000,000) and the creation of two hundred fifty (250) new, full-time jobs. The clean energy business enterprise must manufacture or assemble systems or components used in the generation of clean enerov. Businesses which manufacture or assemble products for use in the aerospace industry or that provide research and development or training services to the aerospace industry. The business must invest a minimum of thirty million dollars ($30,000,000) and create at least one hundred (100) new, full{ime jobs in Mississiooi. Businesses operating a data center with a minimum capital investment of fifty million dollars ($50,000,000) and creating at least fifty (50) new, fulltime jobs with an annual salary of at least one hundred fifty percent (150%) of the averaoe annual waqe.

lncentive Value
A sales or use tax exemption is available for certain clean energy business enterprises that locate or expand in this state.

Revenue

Source
Foregone Revenue

Sales/Use Tax Exemption for

Aerospace lndustry
Enterprises

A sales and/or use tax exemption is available for a business enterprise certified by the MDA as aerospace industry enterprises.

Foregone Revenue

Sales/Use Tax Exemption for Data Center Enterprises

A sales and/or use tax exemption is available for any business

enterprise owning or operating a data center.

Foregone Revenue

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Program
Franchise Tax Exemption for Clean Energy Enterprises

Eligible lndustries
Clean energy business enterprises with a minimum capital investment of fifty million dollars ($50,000,000) and the creation of two hundred fifty (250) new, full-time jobs. The clean energy business enterprise must manufacture or assemble systems or components used in the generation of clean enerqv. Businesses which manufacture or assemble products for use in the aerospace industry, or that provide research and development or training services to the aerospace industry. The business must invest a minimum of thirty million dollars ($30,000,000) and create at least one hundred (100) new, fulltime jobs in Mississiooi. Manufacturers, customer processors, data/information enterprises, technology intensive enterprises

lncentive Value
A franchise tax exemption is available for a ten (10) year period to certain clean energy business enterprises.

Revenue

Source
Foregone Revenue

Franchise Tax Exemption for Aerospace

lndustry
Enterprises

A franchise tax exemption is available for a period of ten (10) years for businesses in the aerospace industry.

Foregone Revenue

Sales/Use Tax Exemption for Construction or Expansion Sales/Use Tax Exemption for Transfer of a National or Regional Headquarters

A sales and/or use tax one-half to full exemption is available for the construction or expansion of certain
businesses.

Foregone Revenue

A minimum number of twenty (20) new headquarters jobs must be created to receive the credit.

A sales and/or use tax exemption is available to an eligible business that creates or transfers its national or regional headquarters for component materials used in the construction, addition or
improvement of a building and machinery and equipment for use in the facilitv. A sales and/or use tax exemption is available for an eligible business that has obtained bond financing through the MBFC.

Foregone Revenue

Sales/Use Tax Exemption for Bond Financing

All businesses using industrial

revenue bonds issued through the Mississippi Business Finance Corporation (MBFC).

Foregone Revenue

Sales/Use Tax Exemption for Business in Growth and Prosperity Area

Manufacturers, processors, distributors, wholesalers, research and development facilities which will create at least ten (10) jobs

A sales and/or use tax exemption is available for a qualified business within a Growth and Prosperity (GAP) Area on component materials, machinery and equipment used in the initial construction or expansion of the business in the GAP Area. A sales and/or use tax exemption is
available for telecommunication businesses on the purchase of equipment used in the deployment of broadband technoloqv.

Foregone Revenue

Sales/Use Tax Exemption for Broadband

Telecommunications businesses

Foregone Revenue

Technology

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Mississippi Job Protection Act (557-95-1)

The Mississippi Job Protection Program is designed for making grants and loans to at-risk industries to be used for job retention and to improve productivity and competitiveness. A company must qualify as an at-risk industry to receive assists under the Job Protection Program. An at-risk industry is a company that has been operating in the state for not less than three (3) consecutive years and is at risk due to foreign competition. Table
Date 2009

6: Job Protection Grant Awards since July

Company
Parker Hannifin

1, 2009

County
Panola DeSoto Itawamba Lee Yalobusha Lowndes Adams Tippah Tiooah Lauderdale Union Itawamba Hinds Hancock Rankin Harrison Hinds Forrest Humphrevs Lauderdale Alcorn Lee Madison Claiborne Madison Washinoton Oktibbeha Noxubee Lincoln Alcorn

lncentive Amount Awarded

$200.000 $100,000 $200,000 $200,000 $200,000 $200,000 $100.000 $200,000 $200,000 $200,000 $200,000 $95,000 $200.000 $179,250 $35,000 $200.000 $200,000 $100,000 $100.000 $200,000 $50,000 $150.000 $200,000 $200,000 $200.000 $25,000 $200,000 $200.000 $200,000 $100.000

Jobs
151

lnvestment Gommitted
$450.000

2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010
2011 2011 2011 2011 2011 2011 2011 2011

A.L.P. Liohtino & Ceilino

Max Home, LLC

65 465 40

$727.460
$177,500 $800.000 $24.370,000 $200,000 $160.000 $272,531 $461,000 $210.000 $11,000.000 $105,000 $332.158 $2,488.000 $420,000

Tupelo Furniture Market

Boro Warner Eka Chemical. lnc. Bad Bov Enterprises. LLC Ecowater

293
96 63
121

fi

Technolooies. LLC

30 671
130

Peavey Electronics

Worthinoton Cvlinders
Max Home, LLC SmartSynch Rolls-Rovce

465 74
15

Multicraft lnternational
Dupont Stuart C. lrbv Co.

57 640

s7.600.000
$5.870.000 $14,900,000

215
130

Resinall Mississiooi. lnc. Consolidated Catfish Atlas Roofino Timber Products Tecumseh Products
Tower Automotive

550

s310.000
$891.550 $321,000 $438.000 $10.600.000 $500,000 $10,575,042 $25,000 $17,400,000 $600,000 $10.000.000 $240,000

220
41

2012
2012

386

2012 2012
2012 2012

266
76

Southern Lumber Co.

Nissan North America

3253
64
11

Center-Moeller Products

2012 2012
2012

il-vt
Shuqualak Lumber
Delphi Automotive

129 234 1489

2012

Cateroillar. lnc.

TOTAL JOB PROTECTION AWARDS

$ 4.834.250

10.440

$ 122.444.241

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Development Infrastructure Program (557-61 -36)

fhe Development Infrastructure Program (DIP) provides

grants or loans to finance infrastructure projects that promote economic growth throughout the state. Funding from this program can be used by municipalities and counties to assist with the location or expansion of businesses. The goal of the program is job creation. Typical industries eligible under this program include: manufacturers, warehouses and distribution centers, research and development facilities, telecommunications and data processing facilities, and national or regional headquarters.
Table

7: Development lnfrastructure
Gompany
Twin Creeks Technoloqies

Program Awards since July 1,2009

Gounty
Tate Rankin Tate Grenada Leflore Quitman Marshall Pontotoc Tippah Grenada Lowndes Lincoln Alcorn Tishominqo Oktibbeha Wilkinson Montoomerv Itawamba Lowndes

Date

lncentive Amount Awarded

$1.000.000 $200,000 $3,000,000 $135.000

Jobs
500 20

Investment Gommitted
$132.500.000.00.
$50,000.00

2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010
2011 2011 2011 2011 2011 2011 2011 2011 2011 2011

Vallev Food Services, lnc. Twin Creeks Technolooies Grenada Stamoino

Delta OilMill Bunqe Corporation ASICS

s00
25
15 0 50

$132.500,000.00. s15.000.00
-0-

$1s0,000 $72,325
$400.000 $250,000 $200,000 $135.000 $300.000 $100,000 $82.000 $220.000 $200,000 $2.000.000

-0$15.000.000.00

Southern Motion, lnc. Bio MiDiesel Looistics Advanced Distributor Prod. New Process Steel, MS Process Steel
& Severstal

200
100

$3.973.566.00 $1,000,000.00 s49.533.00

$25.000.000.00 $600,000.00 $150.000.00 $850,000.00 $71,865,723.00 -0- ** $2.800.000.00 $82,500.00

26 120 25 25 48

Kino's Dauohters Clinic Avershire Electronics. LLC ERSHIGS, Inc. Cotton Mill Marketolace Lake Marv Proiect
MedStat Emerqencv Medical Services

152
0

$296.475 $742,s00
$150.000 $300,000 $250,000 $426.022

20

Townhouse Furniture
K|OR. LLC
I

125
70 12
10 13

s200.000.000.00
$5.500.000.00 $25,000.00 $202,029.00 $500.000.00 $100,000.00 $400,000.00

nternational Converter

Tishominqo
Leflore Quitman Grenada Monroe

Milwaukee Electric Tool Aoriliance. LLC Grenada Stamoinq Townhouse Furniture Slv Manufacturino

$12s,000
$265,800 $100.000

50

80
10

Webster

15

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Date 2011 Dixie Mat

Gompany

Gounty
Marion Coahoma Lauderdale DeSoto DeSoto Lafavette

lncentive Amount Awarded

$150,000 $200,000 $97.100 $730.000 $500,000 $28.508 $385.000

Jobs
15
10 12

lnvestment Committed
$795,000.00

2012 2012 2012 2012 2012 2012 2012

The Clint Williams Comoanv Tower lnternational

Methodist Le Bonheur Hospital Milwaukee Tool Olin Winchester

$3.000,000.00
-0$70.000.000.00

400 25
10

$8.000,000.00
$75,000,000.00

Maqnolia Frac Sand, LLC The Clint Williams Comoanv

Adams
Leflore

30
10

$6.000.000.00 $1.000,000.00

$1s0,000

TOTAL DIP AWARDS

$ 13.340,730

2,708

$ 624.458.3s1.00

* The Twin Creeks project was projected to represent a total corporate investment of $132,500,000.

** Legislated project

15

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Economic Development Highway Program (557-61 -36)

Economic Development Highway Grant Program (EDH) is designed to assist political subdivisions with highway projects, which encourage private companies to engage in "high economic benefit" projects within their areas. The
purpose of this program is to promote industrial and other significant development in the state of Mississippi through the construction and/or improvement of highways in areas that demonstrate actual and immediate potential for the creation, or expansion of major industries or other significant development. The highway or highway segment to be constructed must be necessary to ensure adequate and appropriate access to a proposed company project for the purpose of encouraging its location within a political subdivision.

Table

8: Economic

Development Highway Program Awards since July 1,2009

Gounty
Pearl River Yazoo
Hinds Hinds DeSoto

Date 2009 2011 2011 2011 2012

Gompany
Hiqhland Communitv Hospital Federal Corrections McCov Federal Buildino UMMC

lncentive Amount Awarded

$2.500.000.00 $3,300,000.00 $2.000.000.00 $3.000.000.00 $1,250.000.00

Jobs
50

lnvestment Gommitted
$58.000.000**
$207.000.000 $74,000,000

350
0

0
100

s102.000.000
$70.000.000

Methodist Le Bonheur Hosoital

TOTAL EDH AWARDS

$ 12.050.000.00

s00

$511.000.000.00

**Prior to 2010, the minimum capital investment for EDH was $50,000,000. Subsequent legislation raised the minimum to its current level of $70,000,000.

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Rural Impact Program (557-85'1)

The Rural Impact Fund Grant Program (RIF) provides funding for publicly owned infrastructure needs to assist with
the location or expansion of businesses. This program also provides for loans or loan guarantees to assist and promote economic development in rural areas. To be eligible for this program, municipalities must have a population of 10,000 or less and a county must have a population of 30,000 or less according the most recent federal decennial census. Typical industries eligible under this program include: manufacturers, warehouses and distribution centers, research and development facilities, telecommunications and data processing facilities, and national or regional headquarters. Table

9: Rurallmpact

Program Awards since July 1,2009

County
Calhoun Itawamba Tishominqo Tishominqo

Date 2009 2009 2009 2009 2009 2009 2009 2009

Gompany
Kidz World. LLC Fulton Hospitalitv, LLC Miltec Corporation

lncenilve Amount Awarded

$95.000 $200,000 $149,850 $149.940

Jobs
30 25
10 10 10 15
10

lnvestment Committed
$200.000.00

$3,500,000.00
-0-0$20.000.00 -0-0-

Jamco Furniture lndustries The Diabetic Shoooe Townhouse Home Fumishinqs. LLC American Furniture Manufacturinq. lnc.
DG Foods Schulz Xtruded Products

Tallahatchie
Monroe Pontotoc Cooiah

s150.000
$150,000 $103,000 $150.000 $300,000 $150,000 $100,000 $150.000
$240,1 85

140
180

$2.s00.000.00 $6s,000,000.00 $4,000.000.00

-0-

2010 2010 2010 2010 2010 2010 2010 2010 2010 2010
2011 2011 2011 2011 2011 2011 2011

Tunica
Simpson

The Medical Towers at Tuscan Court

Rives and Revnolds Lumber

45
15

Winston
Pontotoc

Southem Motion. lnc. Brioade Manufacturino

200
30
10

$3.973.s66.00
$200,000.00 $350.000.00 $90.000.00

Walthall
Tippah Monroe Carroll

OilDri, lnc.
Madison House Furniture

$1s0,000 $2s0.000
$92.400 $50,000 $400.000 $200.000 $255.850 $234,500 $700,000 $50,000

85 20 35 50 40
15

Anel Corporation
Hol-Mac Pioneer Aerospace DuraSip BTH Quitman Hickorv First Class Linen, LLC

$1.209.000.00 $2,094,460.00
$500,000.00 -0$24.450.000.00 $500,000.00 $2.500.000.00 -0$25.000.00

Jasper
Marion Neshoba Clarke Holmes Holmes Calhoun

30 20
10 10 18 10

Hunter Enoineerino Co. Haworth. lnc.

Polo Custom Products Pioneer Communifu Hosoital KX Technoloqies. lnc. Folev Products Companv

Winston Choctaw
Tishominqo

s70.000
$264,000 $150,000 $106.950 $50.000 $100,000

-0$100,000.00

2012 2012 2012

2012

Jeff Davis Winston Yalobusha

40
10

$7.250.000.00 s75.000.00
$200,000.00

Teters Floral Products

The Allied Grouo

35

TOTAL RURAL IMPACT

$ 5,211.675

1,158

$ 118.737.026
mlrCrrlppl

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Rural lmpact Fund Grant Program (RlF):

Average investment in public infrastructure per job: $4,500 Private investment generated per grant dollar awarded: $23

Available funding: $800,000

::: RIF allows the state to assist with necessary publicly owned infrastructure for new and expanding businesses. :::

Existing Industry Productivity Loan Program ($57-93-1)

The Mrssissippi Existing Industry Productivity Loan Program is designed for making loans to existing industries that have been operating in the state for at least 2 years and meet minimum criteria established by MDA. Loan funds are to be used to finance long-term fixed assets. An existing industry that accepts a loan under this program cannot reduce employment by more lhan 2oo/o through the use of the long{erm fixed assets for which the loan is granted. MDA conducts a financial analysis of the business or industry requesting the loan. Guarantees are required on all persons or entities wilh 20oh or greater interest in the company.

Table 10: Existing lndustry Productivity Loan Program Awards since July 1,2009
Date 2009 2009 2009

Gompany
Artisan Frame & Mouldino Tishominqo Countv (ATK) Shuqualak Lumber Companv, lnc. Hankins, lnc./Hankins Forest Products, lnc.
McNeelv Plastic Products

County
Marshall Tishominqo Noxubee Tiooah Hinds Pontotoc Montqomerv

lncentive Amount Awarded

$575,000.00 $4.390.097.00 $1.800.000.00 $1.300.000.00 $2,659,000.00 $3,000,000.00 $1.208.994.00 $1.594.000.00 $2,000,000.00 $6,000,000.00 $1.800.000.00 $2.500.000.00 $1,465,000.00 $6,000,000.00 $3.400.000.00

Jobs
0

lnvestmenl Committed
$

785
15

$175.000.000 $200.000 $100.000 $400,000 $880,000 $640,000 $500,000

2010 2010 2010 2010 2010 2010 2010

2011 2011 2011 2011 2011

0 0

Southern Motion, lnc. Anel Corporation

Hol-Mac Corporation

200
20

Jasper
Marshall Lafavette Hinds Lowndes Tiooah Lee

35 25 805
0 0

Contract Fabricators. lnc.

Lafavette Countv {Olin Mfo.)

$3,s29,000
$75.000.000 $7.300.000

SmartSvnch, lnc. Sanderson Plumbinq Abbv Manufacturino Co. Journal, lnc.

Hol-Mac Corporation

$2,s00,000
$300,000 $2,000,000 $2.770.000

40
0

Jasper

130

TOTAL EIB LOANS

$ 39,692,091

2,055

$ 271,119,000

Existing lndustry Productivity Loan Program Average investment per job: $19,314 Private investment generated per grant dollar awarded: $7 Available funding: $10,800,000

::: To date, there have been no loan defaults in this program. Due to issues related to access to capital for a number of Mississippi industries, this program has been used to assist companies with fixed-asset financing. This program is not a revolving loan program; all payments are used for debt service. :::

leI
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Workforce Training Fund ($57-1 401 ) The Workforce Training Fund is a grant program that allows for grants to be made to companies to offset training needs that are not met through the community college system and WIN Job Centers. These funds can be used to reimburse travel expenses for employees who need to be trained at other facilities, can augment community college funds, or provide on-the-job training dollars for new jobs that do not qualify for the federal on-the-job training program,
such as when jobs are moved from out of state.

Table 11: Workforce Training Fund Awards since July 1, 2009

Date 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2012 2012

Gompany
Washinqton Furniture Sales, LLC
Enersteel East MS Communitv Colleoe-KiOR

County
Washinoton

Incentive Amount Awarded

$s0.000 $1s0.000
$300,000 $300,000 $50.000 $100.000

Adams Kemper
Lowndes

Three Rivers PDD- K|OR

Stion MS Partnership - lntemship MSU - Franklin Furniture Trinitv Yachts

Forrest

Oktibbeha Harrison Hinds Gulf Coast Counties

$75,000

$s0,000
$100,000 $20.800 $100.000 $50,000

Lockheed Martin
MS Gulf Coast Communitv Colleqe Baxter - MS Delta Communitv Colleoe

Bolivar
Desoto Harrison Panola Jackson

Watson Pharmaceuticals US Marine, lnc.

GE Aviation - South Delta

$1s,680
$100.000 $56.400

2012
2012

Huntinoton lnoalls

TOTAL TRAINING GRANTS

$1,517,880

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Table 17: Motion Picture Rebate Program Recipients since July 1,2009
Date 2009 2009 2009 2009 2009 Between The Lions

Film

Mississippi
Spend
$319,701 .00 $100.793.00 $82.582.00 $66.757.00 $341,537.00 $82,936.80 $341.537.00 $624.179.00 $227,825.92 $160,193.00 $586.973.59
$161 .524.09
$1 15,881 .00

lncentive
Paid
$92,303.20 $20.158.60

Butterflv Risinq
Crestor Commercial

$4.605.15 s13.351.44
$14.356.44 $16.587.36 $17.847.91 $125.445.00

The Good Forest The Dvnamiter Prom Night ln Mississippi(A.K.A. Return To

Mississiooi)

2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010
2011 2011 2011 2011 2011 2011 2011

The Dvnamiter
I

Am That Man

Head To Head

$45,68s.54
$33,067.00 $118.445.44 $32.603.86 $23.544.00 $42.182.00 $10.421 .00
$31
.1

Cheat Dav Diaries

Extreme Makeover Home Edition

True Blood
Primos Huntinq Calls Habitat For Humanitv St Jude's Children's Hospital

$210.908.00

$s2.105.00 s162.710.00
$102,861 .00

Bruce Foods Commercial Camoaion

Niqht Of The Livinq Trekkies Rites Of Sprinq Call Out Documentary

75.35

$19.229.00 $123.749.00 $13.959.32

$618.74s.00
$69.483.00

The Helo True Blood Antiques Roadshow

The Williams Brothers 50th Anniversarv Bio Bad... Primos 2011 - Camoaiqn Rise Aqain Haunted Haunted (Second Pavment) MS Outdoors - A True South Experience The MS Roots Proiect - Episode
1

s14.004.609.00
$161 ,s24.09

s3.547.780.00
$1,754.32 $18,532.00 $14.848.97 $323.103.21 $42,335.00 $140.000.00

$123,897.00 $72.745.00

$1.487.786.00
$169,422.00 $616.251 .97 $1.673.644.00

2012 2012 2012 2012

2012 2012 2012

s333.487.00 $7,460.66

$219,000.00 $73.250.00
$1

$12,530.00

$18.166.25 $29.775.00

Sowincher Freezer-Poo Camoaion

15.083.00

FILM INCENTIVE TOTALS

$23,146,4/,4.46

$5,374,268.22

All films approved for the Motion Picture Rebate Program are evaluated by MDA's Film Commission. Based on the budget submitted, the film is certified for a maximum rebate. After the completion of the film, the Department of Revenue verifies expenditures and pays the rebate to the production company. Currently, in addition to the rebates
paid, there are 24 approved films with the potential rebate of approximately $8,000,000.

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lncentives Report
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Table 15: Advantage Jobs Rebate Program Recipients since July 1, 2009
Date 2009

Gompany

GountY
Tishominoo
Desoto Desoto Panola

Iob

comilitment
15 50

G&GSteel.

lnc.

2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010
2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011

Rite-Hite Products Corooration Siemens lndustrv. lnc.

GE Aviation Schulz Xtruded Products

183 242 20 25 80 40
115

Tunica
Hancock Desoto Lowndes Yalobusha Marshall Rankin Harrison Tunica Itawamba Madison Lee Tate Desoto Lee Hinds Lee Adams Madison Lee Desoto Tishominoo Lowndes Forrest Kemper Warren Desoto

SABIC lnnovative Plastics US, LLC American Contract Bridqe Leaque American Eurocooter. lnc.
Borq Warner Emissions Svstems. lnc.

Contract Fabricators, lnc. The Scotts Company, LLC GCP Laboratories, lnc.
Schulz Xtruded Products Toyota Boshoku Mississippi, LLC Faurecia Madison Automotive Seatinq. lnc.

25
50

40
100 180

200
50 25 114 50

Auto Parts Manufacturino Mississiooi

Twin Creeks Technolooies South East

Soladiqm, lnc. Auto Parts Manufacturino Mississippi, lnc. Lockheed Martin Corp. Auto Parts Manufacturino Mississiooi Enersteel, lnc. Business Communications, lnc. Auto Parts Manufacturino Mississipoi
McKesson Corooration

200
50 25 25 50 306 40 50
150

Contract Fabricators
KiOR Stion Solar Mississippi

2012 2012 2012 2012

Mississiooi Power Comoanv Cameron lnternational Williams-Sonoma Direct

25
167

90

TOTAL JOBS COMMITTED

2.782

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Tourism Rebate Program

The Mississippi Tourism Rebafe Program is designed to provide a rebate to new tourism-oriented projects within the State of Mississippi. The Mississippi Tourism Rebate Program allows a portion of the sales tax paid by visitors to the eligible tourism-oriented enterprise project to be paid to the applicant to reimburse eligible costs incurred during the construction of the project. An applicant may receive 80% of the actual sales tax revenue collected from businesses, up to 30% of the approved project costs funded from private sources or for a rebate term of ten (10) years, whichever threshold occurs first.

Table 16: Tourism Rebate Program Recipients since lnception Company

Tupelo Automotive Museum Bloomfield Development (Trustmark ParUBass Pro)

Gounty
Lee Rankin Harrison Harrison Hinds Hinds

Incentive
Paid s2.397.125
$12,393,863 $1.106,873 $402.161

Incentive
Maximum s3.937.375 $17.797.887
$4.733,875

Gulf lslands Water Park

Sweetbay Golf Club Kinq Edward Hotel Mississiooi Children's Museum

s3.500.000
$19,497,379 $6,007,500 $55.474.016

s654.804 $72,226 $17.027.052

TOTAL REBATE PAID

This rebate is paid by MDA semiannually, based on information provided by the Department of Revenue. Funds are diverted from the actual sales tax collections each month into a rebate account for this specific purpose.

Motion Picture Rebate Program

The Mississippi Motion Picture Incentive Program provides a cash rebate on eligible expenditures and payroll and provides sales and use tax reductions on eligible rentals/purchases. This program is available for nationally distributed motion pictures, television programs, DVDs, documentaries, short films, and commercials, including animation and production utilizing new technology. National distribution includes theatrical, broadcast, festival screening, streaming video, and lnternet delivery. There is a $50,000 minimum Mississippi investment (local spend) per project. There is an $8 million per project rebate cap. There is a $20 million annual rebate cap, as well. There is no minimum requirement for production days or percentage of production spends.

A production is eligible for a 25o/o rebate of its base investment (local spend) in Mississippi. The base investment is determined by production expenditures in Mississippi. A production is eligible for a 3oo/o cash rebate on payroll that is paid to resident cast and crew members whose wages are subject to Mississippi lncome Tax Withholding, and for that
portion of their salary for the project up to and including $1 million.

A production is eligible for a 25o/o cash rebate on payroll paid to non-resident cast and crew members whose wages are subject to Mississippi lncome Tax Withholding, and for that portion of their salary for the project up to and including $1 million. For purposes of this program, payroll means salary, wages, or other compensation including related benefits paid to employees upon which Mississippi income tax is due and has been withheld.

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The following table shows the remaining funding that is available in MDA's key programs. ln some instances, the agency's cash balances are much higher than the amount shown below. This is due to outstanding commitments that MDA has made for the benefit of projects that have not been expended yet. For infrastructure projects in particular, there is often a significant period of time between the commitment that is made and the payment of funds.

Table 14: Summary of Program Balances as of October 15,2012 f,r.og1an

I

t: : i i I,,.i:,.

:i :

rAm.q;r{i,litveixa-b,!e,,!or,..|

New Projects

IIFRF ACE

$85,000,000

nla

$1,s00,000
$o $2,180,000 $37,000,000 $800,000 $6,000,000 $2,200,000

9,267,606.67

Job Protection
DIP EDH
RIF

$1,611 ,416.67

$ $

4,750,381.00 4,016,666.67
1,722,434.67

$ $

EIB Loan

12,6s1,777.33 $758,940.00

Workforce Training

TOTALS

$134,680,000

34,779,223.00

Differences in the amounts in this table and the balances following each program summary are due to commitments made to projects that are not yet announced.

Other Grant and Loan Programs

ln addition to the ten programs listed above, MDA administers an Airport and Port Loan Program, an Agribusiness Loan Program, an Energy Loan Program, a Sweet Potato Loan Guaranty Program, and an Existing lndustry and Forest Products Loan Program. MDA also works with eligible entities that make loans through the Minority and Small Business Loan Programs. Each of these programs are revolving in nature and have no real need for additional capacity at this time.

Tax Rebate and lnvestment Credit Programs

While tax incentives result in foregone revenue, there are a number of programs administered by MDA that require

direct payment back to the incentive recipient or

reduction in current tax collections due to credits issued for

investment. The following programs are funded through reductions in current tax revenue.

Advantage Jobs Rebate Program

The Advantage Jobs lncentive Program is a rebate program designed to encourage businesses that create 25 new quality jobs to locate in the state. Jobs must meet or exceed the average annual wage of the state or the county in which the company locates, whichever is lower. The Advantage Jobs lncentive Program provides for a rebate of 90% of Mississippi payroll taxes withheld to qualified employers for a period of up to 10 years. This incentive is available to businesses that promise significant expansion of the economy through the creation of jobs. This rebate is paid for a
period of ten years.

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Summary of Key Programs

The key programs are used to meet project's specific needs and have defined parameters that determine how and when they can be used. The following table shows the utilization of each program as it relates to investment per job and the amount of state funds provided compared to private investment. Table 13: Summary of Program Results for FY2008 through FY2012
Fund to

Program
MMEIA IIFRF ACE Job Protection
DIP EDH RIF

Number

GranULoan

Amount
$98,100,000

Jobs**

lnvestment Gommitment
$457,000,000 $1,681,300,000 $1,202,730,960 $122,444,241 $624,458,351 $511,000,000

lncentive "'--.',":-'Per -' JoD

$44,59'r $50,324
$5,1 38

lnvestment
Ratio
4.66 5.94 43.26 25.33
46.81 42.41

3
10

2,200
5,626 5,411 10,440

$283,12s,000 $27,802,820 $4,834,2s0

$13,340,730

40
30

$463 $4,926
$24,1 00

33 5 29
15

2,708
500 1,158

$12,0s0,000 $5,211,675
$39,692,091
$1

$118,737,026
$271 .119,000

$4,s01 $19,315

22.78 6.83

EIB Loan Workforce Training CDBG

2,055

15

,s17,880

nla
2,170
$225,616,586

nla
$16,001

nla
6.50

43

$34,723,119

TOTALS

223

$ 520,397,565

32,268

$s,214,406,164

$16,127.36

10.02

*"lt should be noted that multiple programs may be used for a project, so in some instances, job may a be counted
more than once.

Cumulative Key Program Results FY2008 through FY2012 Total investment commitment: $5,21 4,406,164 Average incentive per job committed: $16,127.36
FUND TO INVESTMENT RATIO:

For every dollar the state commits towards an economic development project, $10.02 is invested from other sources contributing to local and state economies.

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Date

Company
Koch Foods, LLC & Tyson
Foods North Oaks Regional Medical

Gounty
Scott
Tate Holmes

lncentive Amount Awarded

$590,000 $549,745 $800,000 $990,000 $600,000 $297.037
$563.1 60

Jobs
20 28 20 35 30
100

lnvestment Gommitted
$789.100.00 $1.750.000.00 $2,500,000.00

2011 2011 2011 2011 2011 2011 2012 2012 2012 2012

Center Hunter Enoineerinq Comoanv

Ravtheon Comoanv

Scott
Winston Pontotoc Rankin

$2.500,000.00
$1

Louisville Railcar Repair, LLC KC lnteqrated Services. LLC

Nucor Steel and Rockett. lnc.

.370.017.00

$1.200.000.00 $3,500,000.00 $1.050,000.00 $1.000.000.00 s240.000.00 $7,250,000.00

$720,000.00 $20.000.000.00 $4.000.000.00 $356.047.00

25 40 20 20 40 40
150

Contract Fabricators, lnc. Luvata, LLC Saf-T-Cart

Folev Products Comoanv

Tishominoo
Grenada Coahoma

$1,000.000 $296.000 $300.000

2012
2012

Jeff Davis
Coahoma

$1,26s,799
$800,000 $993.200 $400.000 $400.000

Airquide Manufacturinq, LLC

GE Aviation

2012
2012 2012

Jones
Lincoln Montoomerv

King's Daughters Medical

Hosoital Screw Convevor Corooration 20 20

TOTAL CDBG GRANTS

s 34,723.119

2,170

$ 22s,616.586

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Community Development Block Grant Program

fhe Community Development Block Grant (CDBG) Economic Development Program is a grant program available to fund publicly owned infrastructure from funds provided through the U.S. Department of Housing and Urban Development. Funding from this program can be used by municipalities and counties to assist with the location,
expansion, or retention of businesses. Job creation is the goal of the program. CDBG requires that at least 51% of the jobs created must be made available to persons of low and moderate income as determined by the U.S. Department of Housing and Urban Development. Typical industries eligible under this program include: manufacturers, warehouses and distribution centers, research and development facilities, telecommunications and data processing facilities, and national or regional headquarters.
Table 12: Community Development Block Grant Economic Development Program Awards since July 1, 2009

Date

Company
Yazoo County Correctional
Facilitv

Gounty
Yazoo

lncentive Amount Awarded

$6s0.000
$1

Jobs
25
100

Investment Commifted
-0$3.450.000.00 $2,400.000.00 $400,000.00 $10.000.000.00 -0-

2009

2009
2009 2009 2009 2009

United Furniture ndustries

I

Chickasaw Wavne Jones Lowndes Chickasaw

.175.000

Jarden Corporation Wavne Farms

New Process Steel Chickasaw County Detention

$514,097 $598,500 $1.620.000 $750.000

30 25 65 40 20
50

Center Southem Lumber Comoanv

Dennen Steel Corporation Newlv Weds Foods

2009
2009

Claibome Tishominqo
DeSoto

$s00,000
$770,864 $353.000 $650.000 $1,200,000 $650.000 $441.000 $6.000.000 $495,000 $363,000 $231,870 $235.000 $600,000 $650,000 $2.200.000 $590.000 $712.500

$33s,000.00 $3.320,000.00 $1.250.000.00

$13.015.283.00

2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010
2011 2011 2011 2011 2011 2011

20 88
107

Rush Health Svstems

MTD Products, lnc. Reqional Jail

Kemoer
Lee Washinoton Cooiah Tunica Grenada Rankin Coahoma Neshoba

$5,sss,000.00
-0$300,000.00

45 25
180

CCl, lnc.
Schulz Xtruded Products

s65.000.000.00
$300,000.00

Grenada Stamoino R-Squared Puckett. lnc. Drumheller Baq Corooration

Garan Corooration

40 25 20 38 33 35 120 50 36 35

-0$208.683.00

-0$225,700.00 $9,000.000.00 $25.000.000.00 $590.000.00 $4.373.756.00 $18,000.000.00 $10.000.000.00

Slv Manufacturino Windsor Qualitv Foods. lnc. New Process Steel, MS Process Steel & Severstal Delta Furniture, LLC Koch Foods of MS. LLC Scotts Miracle Gro Companv Lotus Holdings, LLP (AlohaGen)
REX Lumber. LLC First Class Linen. LLC Biq M Transportation, LLC

Webster Yalobusha
Lowndes Pontotoc

Scott
Rankin Neshoba Lincoln Holmes Tiooah

$514,462
$1.000.000 $650.000 $523.885 $240,000

200
50 30 30

$3.718.000.00 s500.000.00
$450,000.00

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Missrssippi I nvestment Tax Credits P rogram

A credit to Mississippi income or insurance premium tax is available for eligible investments made by Community Development Entities (CDEs) in designated low income census tracts in the state, as defined by the U.S. Census
Bureau. These credits are state credits that act as companion credits to the Federal New Markets Tax Credits (NMTC) Program. Mississippi allows a state credit equal lo 24% of the Qualified Equity lnvestment (QEl) in addition to the credits awarded through the federal program. Equity lnvestment Credits are calculated as 8% of the QEI and are available as of the state credit allowance date, and annually for two additional years.

Table 18: Mississippi lnvestment Tax Gredit Program Awards since July 1,2009
Date 2009 2009

Project Name
Sinqinq River MOB Various Proiects
Jeff Anderson Reoional Medical Ctr. First National Bank Buildinq Unitv Homes Rex Lumber Brookhaven. LLC Rex Lumber Brookhaven. LLC

Funding Amount
s11.000.000 s18.600.000
$8,700,000 $3.000.000 $2.695.972

Credits Awarded
$2.400.000

s2.170.867
$2,088.000 $720.000 $646.938

2010 2010 2010 2010 2010 2010 2010 2010 2010 2010
2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2012

s13.000.000
$120,000,000 $20.000.000 $9.600.000 $10.000.000 $15,700.000
$1 1.000.000

$1.248.000
$1 .1

52.000

Pointe Properties LLC

Countv Line Road Develooment LLC

$2.400.000 $2.304.000
$2,400,000 $2,400.000 $2.400.000 $2.400.000 $2,400,000 $2.400.000 $2.760.000 $2.400.000 $2,400,000 $1,440.000 $1.200.000

Various Proiects Torrrified Proiect. Quitman. MS Torrrified Proiect, Quitman, MS

Hickorv Proiect Schulz Xtruded Products

$10.650.000 $20.000.000 $12.000,000

$1 1.500.000

Resinall Mississiooi. lnc. Various Proiects

Medical Center Koscuisko Quitman Wood Pellets KemPosits Hub Citv Lofts Hub Citv Lofts Habitat for Humanitv

$12.600.000 $16.250.000 $9,000,000 $6.000.000 $6.000.000

s1.200.000
$1,368,000 $2,016.000

s5.700.000
$8,400,000 $6.500.000

Peachtree-Marriot Hotel Columbus lron Horse

Hilton Garden lnn Pascaqoula Meridian Law Enforcement Center Neshoba Countv Hosoital Neshoba Countv Hosoital Quitman Wood Pellets Green Tech Automotive

s1.560.000 $1.248.000 $1,909.920

$1.200.000 $1.200.000 $2,400,000 $2,400.000

s5.200.000
$7,958,000 $13.100.000 $8.000.000 $10.650.000 $10,000.000

2012
2012 2012 2012

2012

TOTAL MISSISSIPPI INVESTMENT CREDITS

s 422.803.972

s 56.231.725
miidslpFl d$tloFffit .utho.ttt

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New Markets Tax Credit program credits have generated $7.50 of private investment for each tax credit dollar awarded. Credits are based on a Mississippi investment being maintained for a minimum of seven years, as required under the federal program. The maximum investment eligible for credits on any project cannot exceed $10,000,000. The total Mississippi Equity lnvestment Credits that can be awarded is capped at $15,000,000 per year.

Conclusion
lncentives are an essential component of any successful economic development strategy for Mississippi. Competing states, including Alabama, Florida, and Louisiana, vie for business investment in their respective states with robust incentive programs and are actively strengthening their incentive offerings.
For most economic development projects, companies' needs can be met from an operational perspective at locations in multiple states. To differentiate Mississippi and encourage companies to select a site within the state, attractive incentives are vital. These incentives are usually in the form of infrastructure assistance, workforce training, and tax reductions, but they may also include assistance for business relocation costs.

As shown in the 2012 lncentives Report, Mississippi's incentives are producing positive returns on investment for the state by facilitating job creation and capital investment. Mississippi's General Fund, as well as county and municipality
tax rolls, are benefitting from the effective use of incentives.
MDA considers its fiduciary role in overseeing the judicious use of taxpayer dollars to be of the utmost importance, and the agency works diligently to ensure the economic incentive programs under its direction are administered effectively.

Today's global economy mandates that local communities and states cultivate fertile ground for businesses seeking locations for their operations. Fully funded incentive programs are vital for Mississippi to adequately compete.
MDA is firmly committed to adhering to the highest standards as it works to recruit new investment to the state and help Mississippi's existing businesses grow and prosper, while upholding the integrity of its core mission to create jobs and economic opportunities for Mississippians.

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