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Senate advances tax‑credit rebate to entice rehabilitation of tax‑forfeited, blighted properties
Summary
The Mississippi Senate advanced a conference report establishing a 25% state credit rebate to encourage private rehabilitation of tax‑forfeited, blighted properties held by the state.
The Mississippi Senate advanced a conference report creating a state credit rebate aimed at encouraging private rehabilitation of tax‑forfeited and blighted properties held by the state.
Under the conference report explained on the floor, developers may claim a 25% credit on eligible rehabilitation spending; they can either apply the credit against income tax liability or take 75% of the credit as a cash rebate. For eligibility, the conference report sets minimum rehabilitation spend requirements: $50,000 for residential properties and $100,000 for commercial projects, and it requires a licensed third‑party cost certification to verify expenditures.
The program pairs the tax rebate with a county/city rebate that remits a portion of the incremental ad valorem tax revenue to developers after rehabilitation, so teams said. The Secretary of State’s office will manage applications through sale or long‑term lease of a property, while the Department of Revenue will administer the tax credit and the rebate process.
Proponents said the measure includes guardrails to prevent fraudulent claims by requiring licensed third‑party cost certifications and documentation to be filed with the Secretary of State. The sponsor highlighted that many tax‑forfeited properties exist—citing an estimate that about 1,900 tax‑forfeited properties in the metro area could be targeted—calling the program a tool to return properties to productive use.
Senator Seymour asked whether the program applies to private property; the sponsor clarified the rebate only applies to tax‑forfeited property certified to the state as eligible and declared blighted. The conference report passed by roll call on the Senate floor.
The legislation establishes definitions for “eligible property” and assigns administrative responsibilities between the Secretary of State and the Department of Revenue, and it conditions tax relief and rebates on meeting rehabilitation and sale/lease milestones.
