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Mississippi Legislation Would Create State NMTC with $48 Million Annual Cap

Wednesday, April 3, 2024 - 1:25PM

Legislation introduced in the Mississippi Senate would create a state new markets tax credit (NMTC) incentive to replace the existing state NMTC that expires in July. S.B. 3070 would create an NMTC worth 48% of qualified equity investments (QEIs), taken 16% per year for the first three credit years, for investments in businesses with principal operations in Mississippi. There would be a $48 million annual allocation cap with a per-business cap of $10 million in qualified active low-income investments. The sunset date for awarding credits would be July 1, 2027. Mississippi’s current NMTC is for 24%, with an annual transaction cap of $10 million and an annual statewide cap of $15 million.

State NMTCs and their role in the capital stack will be a topic at the Novogradac 2024 Spring New Markets Tax Credit Conference, June 6-7 in Washington, D.C.

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