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SB 3126

Income tax; authorize credit for added tax revenue from certain nongaming capital investment projects at casinos.

2025 Regular Session Introduced by Scott DeLano and 2 co-sponsors

Creates a tax credit up to 50% of incremental gaming taxes from new nongaming investments at existing Mississippi casinos, capped by project costs.

Died On Calendar
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Bill Summary · SB 3126

SB 3126 — Income tax credit for nongaming capital investments at casinos (Summary)

Status: Died on Calendar (April 3, 2025)
Introduced: January 24, 2024
Companion: HB 2437

Purpose / Intent

SB 3126 would have created a targeted income tax credit to encourage Mississippi casino operators to make non‑gaming capital investments (hotels, RV parks, entertainment venues, restaurants, marinas, etc.) at existing casino properties. The credit is structured as a partial refund of the additional gaming‑tax revenue generated after such investments — effectively returning a portion of incremental gaming tax receipts to the investing casino to support large nongaming projects.

Key provisions

  • Eligible entity: a gaming licensee that has operated in Mississippi for at least five (5) years and makes an eligible “growth capital investment project” at its casino property.
  • Eligible project: a new nongaming capital project at an existing casino with a minimum investment of $7,000,000. Excludes renovations/upgrades and any construction/expansion/renovation of gaming facilities.
  • Incremental gaming taxes: calculated annually as the difference between (a) gaming taxes paid during a specified 12‑month period beginning either the month after the project opens (or the same month in any of the next nine years) and (b) the entity’s baseline gaming taxes calculated as an annualized three‑year average for the 36‑month period ending the month before the project opens.
  • Credit amount: up to 50% of the incremental gaming taxes for the applicable 12‑month period.
  • Limits:
    • The credit claimable in any one tax year cannot exceed the taxpayer’s total income tax liability under the chapter.
    • Total credits claimed for any single project cannot exceed the project’s cost.
    • Unused credit may be carried forward for five succeeding tax years.
  • Timing and certification:
    • An entity must apply to the Mississippi Gaming Commission (MGC), which determines project eligibility and issues a certificate of eligibility; the certificate must be attached to tax returns claiming the credit.
    • The MGC and the Department of Revenue are authorized to promulgate implementing rules under the Mississippi Administrative Procedures Law.
    • The bill included a limitation that the Gaming Commission would not issue certificates after December 31, 2029 (i.e., a deadline for certificate issuance).
  • The bill text also “brought forward” existing Code sections (27‑7‑22.37 and 27‑7‑22.41) concerning other tax credits (prekindergarten support contributions and certain charitable contributions), but the new, substantive addition is the casino nongaming investment credit.

Who is affected

  • Primary beneficiaries: established Mississippi casino licensees (operating ≥5 years) that undertake qualifying nongaming capital projects of at least $7 million.
  • State fiscal impact: would reduce state corporate income tax revenues to the extent credits are claimed, although credits are tied to increases in gaming tax receipts produced by the investment (i.e., a portion of measured revenue growth would be rebated).
  • Local economies: intended to spur non‑gaming development at casino properties, potentially increasing employment, tourism and local spending.

Legislative history / procedural timeline

  • Passed First Reading Jan 24, 2024. Advanced through committees and both chambers with amendments and conferee activity.
  • House amendments adopted; Senate disagreed at one point and conferees were appointed. A conference report was filed and (per record) adopted March 31, 2025.
  • Final status: Died on Calendar April 3, 2025 (bill did not become law).

Notes / Considerations

  • The credit is explicitly limited to nongaming investments and specifically excludes gaming facility expansion, focusing incentives on diversification of attractions/services at casino properties.
  • The deadline for certificate issuance (Dec 31, 2029) would limit the window for projects to qualify.
  • Because the credit is based on incremental gaming taxes (an increase in gaming receipts), actual fiscal effects depend on whether the nongaming investment meaningfully increases gaming revenues (or timing thereof) and on how soon a project’s post‑opening 12‑month period is selected for comparison.

Compiled from official sources — confirm details with the bill’s official record.

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