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HB 1240

Qualified equity investment tax credit; increase maximum allowed and extend date after which MDA will not allocate.

2025 Regular Session Introduced by Trey Lamar

HB 1240 would increase Mississippi's qualified equity investment tax credit maximum and extend the MDA's allocation deadline to boost private capital investment incentives.

Died In Committee
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Bill Summary · HB 1240

Legislative bill overview

HB 1240 would increase the maximum allowable amount for Mississippi's qualified equity investment tax credit and extend the deadline for when the Mississippi Development Authority (MDA) must stop allocating new credits. The bill aims to make the state's equity investment incentive program more generous and longer-lasting.

Why is this important

Tax credits for equity investments are designed to encourage private capital investment in Mississippi businesses, particularly startups and growing companies. By increasing the cap and extending the program, the state signals continued commitment to this economic development tool, though it also increases foregone state tax revenue. The bill died in committee, so these changes will not take effect unless reintroduced in a future session.

Potential points of contention

  • Fiscal cost: Increasing the maximum credit and extending its duration reduces state tax revenue without a clear guarantee of proportional economic growth or job creation
  • Program effectiveness: Questions about whether qualified equity investments actually generate adequate returns on the state's foregone taxes versus other economic development strategies
  • Equity and access: Concerns about whether such credits primarily benefit wealthy investors and established business networks rather than underrepresented entrepreneurs

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

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