Mississippi Research and Development Skills Tax Credit
Mississippi Department of Revenue / Mississippi Development Authority
$1,000 per R&D employee/year
Researched for this program: 4 rejection traps · 4 required documentsWhat decides this award ↓
$1,000/yr per R&D employee for 5 years
Mississippi's R&D Skills Tax Credit pays $1,000 per R&D employee per year for up to 5 years for companies hiring qualified research and development personnel. Unlike most R&D tax credits tied to expenditure amounts, this is a headcount-based credit — straightforward to calculate and document. It applies to any qualified entity with employees performing R&D roles, including software engineers, scientists, and technical researchers. The credit applies against Mississippi income tax.
- Funding type
- Tax Credit
- Level
- State
- Amount range
- $1,000
- Realistic amount
- A company with 5 qualifying R&D employees earns $5,000/year ($25,000 over 5 years). A tech startup with 15 R&D engineers…
- Deadline
- Claimed on Mississippi income tax return. No separate application required. Verify qualifying R&D positions with MDA before filing.
- Status
- active
- States
- MS
- Payment model
- tax offset
Who qualifies
- Business must be a qualified entity operating in Mississippi
- Must employ qualifying R&D personnel — positions requiring research and development skills
- Employees must be physically working in Mississippi
- Business must pay Mississippi income tax
- No minimum employee count or investment amount required
Hard requirements
- Location restriction: Mississippi — qualifying employees must work in-state
What it covers
Eligible expenses
- Not expense-based — credit is $1,000 per qualifying R&D employee per year
- Qualifying employees are those employed in positions requiring research and development skills
Ineligible expenses
- Non-R&D staff (sales, marketing, administrative, customer service)
- Employees not physically working in Mississippi
- Contract or temp workers not on direct payroll (verify with MDA)
How to apply
-
1
Identify qualifying R&D employees
Determine which employees hold positions that require R&D skills — software engineers, scientists, lab technicians, product researchers. Document job descriptions confirming the R&D nature of each qualifying role.
-
2
Confirm with Mississippi Development Authority (MDA)
Contact MDA (601-359-3449) to confirm that your qualifying positions meet the MDA's definition of R&D skills positions. Guidance on what constitutes a qualifying role is administered through MDA.
-
3
Calculate the annual credit
Multiply the number of qualifying R&D employees by $1,000 to determine the annual credit amount. The credit is available for 5 years per qualifying employee.
-
4
Claim on Mississippi income tax return
File the credit on the annual Mississippi corporate income tax return. Attach supporting documentation of qualifying employee count and role descriptions. Credit offsets Mississippi income tax liability.
The $1,000 flat-rate structure makes this easy to calculate — no complex expenditure tracking required. Contact MDA early to confirm which job titles qualify before filing. Stack with the federal §41 credit for maximum benefit.
Deadline & timing
The credit is claimed annually on the Mississippi corporate income tax return for the tax year in which qualifying R&D employees worked. The 5-year clock starts when the qualifying employee is first counted. No annual application window or MDA pre-approval process is documented — confirm current filing requirements with Mississippi Department of Revenue.
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