As part of his Energy Works: Mississippi's Energy Roadmap plan, Governor Phil Bryant recently signed into law landmark legislation that positions Mississippi as a leading destination for energy-related economic development. These sensible, forward-thinking approaches to energy policy also position Mississippi as a state that welcomes a diverse mix of investment in the energy sector.
"Mississippi's diversity of energy resources and infrastructure makes us a significant energy state and an ideal location for businesses," Governor Phil Bryant said. "Energy-sector economic development is a primary focus of my administration, and the passage of these laws will increase Mississippi's competitiveness when attracting and recruiting new industries."
Mississippi's energy production is one of largest economic engines in the state, providing more than 28,000 jobs. Mississippi produces approximately 23 million barrels of oil a year and ranks 13th in oil production. The state also ranks 21st in natural gas production.
Legislation signed into effect includes:
HB 844 Sales Tax Exemption on Energy for Manufacturing
Exempts sales tax on energy used in manufacturing. While Mississippi boasts energy costs around 20 percent below the national average, HB 844 further cuts the costs of one of the key drivers companies consider when choosing a location for new investment. Manufacturing comprises a large portion of Mississippi's economy, and advanced manufacturing and onshoring are key target sectors for the state.
SB 2564 Energy Infrastructure Revolving Loan Fund
Gives Mississippi communities the ability to help finance energy infrastructure (for instance, gas lines and transmission lines) for companies that invest more than $50 million in an economic development project. This law provides the State a new low-interest financing tool to help companies locate or expand in Mississippi.
HB 841 Sales Tax Reduction on Electricity for Enhanced Oil Recovery
Decreases the sales tax paid on electricity to 1.5 percent for oil and gas produced in the state using carbon dioxide as a method of enhanced oil recovery (EOR). Existing Mississippi EOR policy is considered by many to the best in the nation, and the passage of HB 841 will further improve our position and help to grow this industry in our state.
HB 826 Rebate on Research and Development Costs
Defrays the research and development costs of companies that operate in Mississippi and partner with a state institution of higher learning. Under this new law, a corporation that collaborates with a state university for research and development purposes, including energy-related research, is eligible for a 25 percent rebate of the total research costs. This law will assist companies looking to tap into the wealth of energy expertise and resources available in Mississippi's research institutions.
Governor Bryant tasked the Mississippi Development Authority with executing his strategies for energy-related economic development. MDA promotes the state's energy-related economy utilizing four targeted approaches: Responsible Resource Exploration and Extraction; Energy-Intensive Industry Recruitment; Energy Systems Component Manufacturing; and Biomass Development.
"Energy costs and availability of resources are often deciding factors for companies seeking a location for new investment, and these laws passed by the State Legislature will tremendously assist our economic development efforts moving forward," said Brent Christensen, MDA executive director. "I commend Governor Bryant and our legislative partners for being so hands-on and dedicated to the economic development of Mississippi. The passage of these new laws will greatly benefit the state's existing businesses while further positioning Mississippi as the optimal place for energy-related industries and manufacturing companies to locate."
"Manufacturers use more than one-third of the energy consumed in the United States. In a globally competitive marketplace, these legislative actions support our existing manufacturers and increase our competitive position for domestic and international companies that are considering a U.S.-based location," said Mississippi Manufacturers Association President and Chief Executive Officer Jay Moon.
To learn more about energy initiatives in Mississippi, please visit www.mississippi.org/energy-works. To learn more about the benefits of a Mississippi location, please visit www.mississippi.org/locate-in-mississippi/.