7/1/2005 - Legislature recognizes importance of manufacturing in passing Momentum program

JACKSON, Miss. (July 1, 2005) The Momentum Mississippi economic development package that passed the state Legislature Thursday night recognizes the importance of manufacturing in a strong state economy. “We congratulate the Momentum team that included many manufacturers, the members of the Mississippi Senate and House of Representatives, and Gov. Haley Barbour for this innovative piece of legislation,” said Jay C. Moon, CEcD, president and CEO of the Mississippi Manufacturers Association. “The Legislature recognizes the challenges facing manufacturers at this time as the economy is improving. We continue to have challenges, but these incentives will help us to ensure that Mississippi is competitive in attracting new industries and securing expansions of plants already here,” said Moon. House Bill 3 expands incentives currently available to manufacturers to include other businesses such as research and development facilities, company headquarters and back office operations. The bill also provides new funding for Mississippi economic development programs that have brought manufacturers to Mississippi or helped them grow. Following are three new programs in the legislation that help manufacturers compete:

• Manufacturing Investment Tax Credit available to companies that have been in the state for a minimum of two years and are making at least a $1 million investment in building or equipment. A state income tax credit of up to 5 percent of the new investment also is available.
• Existing Industry Productivity Loan Program, which makes $6 million available to companies that have been in the state at least two years, for equipment purchases that improve productivity and competitiveness. Since adding equipment can reduce employment, the program requires that a company cannot reduce jobs by more than 20 percent when adding the new equipment. The loan can be for up to 50 percent of total projected cost, with a 1-1 public/private match required.
• Mississippi Job Protection Act, which provides $12 million in loans and grants for “at risk industries” to retain jobs in danger of being moved outside of the United States. Companies must have been in the state for at least three years. Grants are available for up to 50 percent of the project cost or a maximum of $200,000 through the Mississippi Development Authority.

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