Rural renewal status gives tax breaks
Published 12:00 am Friday, May 19, 2006
NATCHEZ &8212; Tax breaks are out there for the taking for many local businesses, thanks to Nissan.
Since 2002, much of the northern half of Adams County has been a Rural Renewal Community &8212; based on the poverty and unemployment levels. And representatives from the Central Mississippi Planning and Development District told local accountants and business owners Tuesday how to take advantage of the status.
The state received the federal renewal status through the U.S. Department of Housing and Urban Development as a result of Nissan&8217;s request for tax credits if they located in Canton.
The status stretches from Greenville to Natchez over 13 counties, and ends locally just shy of the Adams County port.
Planning and Development officials are working to extend the area further into Adams County, but in the meantime, plenty of businesses qualify, said Bruce Reynolds, director of the planning and management division.
Employment credits are the easiest to receive, Reynolds said. Businesses that have an employee who lives and works in the renewal community area can deduct up to $1,500 annually.
&8220;This program, if you are eligible, is great,&8221; he said. &8220;It&8217;s as easy as they come. It allows folks to expand operations and increase employment.&8221;
Other tax breaks include the Increased Section 179 Deduction for businesses located with the renewal area with at least 35 percent of their employees living in the renewal area. Some exceptions do apply &8212; golf courses, gambling facitilies, massage parlors, etc.
Qualified businesses can expense up to an additional $35,000 a year for qualified property &8212; office equipment or machinery.
The greatest financial incentives apply to Commercial Revitalization Deductions. The state can allocate $12 million in deductions to businesses who construct or rehabilitate commercial property in the renewal area.
Nissan benefited from this break.
Henry Cote, associate manager of finance with the Mississippi Development Authority, said a dentist in Yazoo County and a port-a-john business in another county have also taken advantage of the deductions.
Businesses interested in applying for any of the deductions can visit www.msrenewal.org for more information.
The renewal community runs up to East Franklin Street and U.S. 61 North in Natchez. Most streets to the north of that area are included.