Mississippi Location and Production Guide - Delta Blues Foundation

III. The Mississippi Motion Picture
Incentive Program
The Mississippi Motion Picture Incentive Program is available for motion pictures, television programs, documentaries, short films,
and nationally distributed commercials.
DEFINITIONS
“Motion picture” means a nationally distributed feature length film, video, DVD, television series, or commercial made in whole or in
part in Mississippi for theatrical or television viewing.
“Motion picture production company” means any company engaged in the business of producing a “motion picture.”
“Project” means a production certified by the Mississippi Development Authority. For the production of a television series, each
season can be designated as a separate project.
The production of news or athletic events do not qualify, nor does any project that contains any material or performance deemed
obscene, as defined in Section 97-29-103, Mississippi Code of 1972.*
THE PRODUCTION REBATES
Mississippi Investment Rebate
A production company that has an approved project is eligible for a rebate of their base investment (local spend) in Mississippi. The
percentage of the rebate is 20% of the base investment (which includes wages paid to non-Mississippi residents), with an additional 5% rebate
allowed for eligible wages paid to Mississippi residents. In instances where an employee is compensated over one million dollars, the rebate will
only apply to the first million dollars of eligible wages. (See Eligible Payroll Rules below.)
The base investment is based on production expenditures in Mississippi, including, but not limited to:
l Purchases of goods and services from Mississippi vendors. This does not include rebilled goods or services purchased by
an in-state company from out of state vendors or providers.
l Eligible payroll. (See Special Rules below);
l Costs of services, directly related to the project, of a local payroll company;
l Legal fees incurred through an in-state attorney directly associated with setting up a local production LLC for the project;
l Costs of the rental or purchase of equipment from: (1) an out-of-state equipment company that has established a local
office in Mississippi, or (2) from a Mississippi production company/vendor with a vendor/license agreement with an outof-state
company, or (3) if a Mississippi production company/vendor provides equipment rented from an out-of-state
company;
l Payments made to local travel agencies for airfares directly related to the project in Mississippi where travel is to/from
Mississippi, New Orleans, Memphis, or Mobile; and
For certain purchases, such as real property and automobiles used by the production company, special rules will be applied by the
State Tax Commission to determine the value of the asset during the Mississippi production period.
Base investment does not include expenditures made outside of Mississippi even if the items are subsequently brought into the state.
However, in some cases, those expenditures may utilize sales/use tax exemptions and reductions as outlined below.
There is a twenty thousand dollar ($20,000) minimum Mississippi investment (spend) per project, an eight million dollar
($8,000,000) maximum rebate per project, and a twenty million dollar ($20,000,000) maximum rebate cap per fiscal year (July 1-June 30).
Special Rules Related to Payroll
A production company that has an approved project is eligible for a rebate on payroll paid to non-resident (20%) and resident (25%) cast and
crew whose wages are subject to Mississippi Income Tax Withholding. For purposes of this program, payroll means salary, wages, or other
compensation including related benefits upon which Mississippi Income Tax is due and has been withheld.
In instances where actors and/or crew are “loaned out” to the production, payroll may still be considered. Contracts must be provided that show
total compensation, and Mississippi Income Tax must be withheld for the loan-out to qualify.
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