Are R&D Tax Credits
Available in Mississippi?
No. While companies located in Mississippi may still qualify for the Federal Research and Development (R&D) Tax Credit, the state of Mississippi does not currently offer an R&D tax credit at the state level.
Why the Federal R&D Credit Still Matters
Even without a Mississippi-specific incentive, businesses can take advantage of the federal credit, which has been one of the most valuable tax incentives since it was first enacted in 1981.
Delivers billions in annual tax savings to U.S. companies
Provides cash flow to hire employees, expand R&D, and scale operations
Supports thousands of companies across industries like manufacturing, technology, engineering, and life sciences.
Qualifying Research Activities
The four-part test that defines what counts as qualified research activities under
the R&D Tax Credit program
Purpose of the Research
The activity should develop or improve a business component, such as a product, process, software, formula, technique, or invention, by enhancing functionality, performance, reliability, or quality.
Resolving Uncertainty
The work must address technical uncertainties, such as determining the optimal design, method, or approach to achieve the desired outcome. The results should not be known in advance.
Systematic Experimentation
Eligible research must follow a structured experimentation process, including trial and error, modeling, simulation, or testing alternatives to reach the intended improvement.
Technological Basis
The activity must rely on hard sciences such as engineering, physical or biological sciences, or computer science. Artistic, social science, or routine data collection work does not qualify.
Why the R&D Tax Credit Matters ?
Since 1981, the R&D Tax Credit has helped businesses save billions in federal and state taxes. The credit enables companies to hire more staff, expand R&D, invest in facilities, and drive innovation. Thousands of businesses across multiple industries take advantage of this benefit each year.