Landmark Energy-Related Economic Development Legislation Signed – WJTV … – WJTV

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/.