HB 1341 Mississippi House · 2025 Regular Session

MS Health Care Industry Zone Act; extend repealer on act and related tax incentives.

HB 1341 extends the expiration dates for Mississippi's Health Care Industry Zone Act and related tax incentives, keeping existing programs active beyond 2026. The bill directly affects health care businesses that create 25+ new jobs or $10 million+ in capital investment (or $20 million for academic-affiliated facilities), allowing them to continue qualifying for tax benefits like accelerated depreciation, sales tax exemptions on construction materials, and ad valorem or fee-in-lieu tax exemptions. Key provisions include extending the repealer date for the main act (Section 57-117-11) and delaying the end of tax exemption periods for counties/municipalities (Sections 27-31-101, 27-31-104, and 27-65-101). The bill does not create new incentives but prolongs existing ones for qualifying health care industry facilities.

Bill status signed all 5 stages cleared

Introduction

Feb 2025

Committee Review

Apr 2025

House Passage

Feb 2025

Senate Passage

Mar 2025

Signed into Law

Apr 2025

Introduced Feb 12, 2025 Signed Apr 23, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

As Passed the lower → Current version · 5 edits

MODERATE

This bill extends the Mississippi Health Care Industry Zone tax incentives and updates the repeal date for related sales tax exemptions from 2028 to 2026. It also clarifies the definition of telecommunications equipment for broadband deployment and adjusts the fee-in-lieu minimums for certain projects.

Scope change

The bill's scope remains focused on economic development incentives for health care and manufacturing industries, but the timeline for repealing certain tax exemptions was shortened by two years.

TIMELINE

The repeal date for the sales tax exemption on materials used in health care facility construction was changed from July 1, 2028 to July 1, 2026, shortening the tax break by two years.

The repeal date for the telecommunications equipment tax exemption was extended from July 1, 2025 to July 1, 2030, providing a five-year extension for broadband deployment incentives.

DEFINITION

The definition of telecommunications equipment for broadband deployment was updated to include specific speed requirements for mobile broadband (35 Mbps downlink, 3 Mbps uplink) and fixed broadband service.

FISCAL

The minimum fee-in-lieu amount for projects eligible for ad valorem tax exemptions was clarified to apply to agreements entered into before July 1, 2026.

REQUIREMENT

The bill was amended to reference House Bill No. 1644 from the 2025 Regular Session, indicating it builds upon or modifies provisions from that separate legislation.

As Introduced → Committee Substitute · 7 edits

MODERATE

This bill renews and extends the Mississippi Health Care Industry Zone Act, which provides tax incentives for healthcare businesses. The Committee Substitute version extends the repeal date of the healthcare zone act from 2025 to 2028, aligning it with other related tax exemption statutes. It also expands eligibility criteria for healthcare facilities and adds new enterprise categories to other tax incentive programs.

Scope change

The bill's scope was extended by three years, changing the expiration date of the healthcare industry zone act from July 1, 2025 to July 1, 2028. The scope of eligible businesses was also expanded to include additional enterprise types in related tax incentive programs.

TIMELINE

Extended the repeal date of the Mississippi Health Care Industry Zone Act from July 1, 2025 to July 1, 2028, allowing healthcare businesses to continue receiving tax incentives for an additional three years.

Added new fee-in-lieu provisions for projects certified under Section 57-75-5(f)(xxxiii) with minimum fee requirements of one-third of ad valorem taxes.

ELIGIBILITY

Added new enterprise categories to ad valorem tax exemption eligibility, including data centers, telecommunications enterprises, and controlled environment agriculture enterprises.

Added specific requirements for telecommunications enterprises, excluding commercial broadcast radio stations, television stations, and news organizations primarily serving in-state markets.

REQUIREMENT

Added new subsections to fee-in-lieu agreements allowing for special apportionment rules for projects in regional economic development alliances and specific disaster-related projects.

SCOPE

Added new sales tax exemptions for various enterprise types including data centers, technology intensive enterprises, and renewable energy facilities.

DEFINITION

Added new definitions for telecommunications enterprises and expanded the definition of health care industry facility to include additional research and development activities.

Floor votes · Senate Mar 10, 2025 · House Feb 11, 2025

How they voted

49–1

Passed · 1 other

Total votes 51

Mar 10, 2025

D Democratic16

14 Yea 1 Nay 1

87% Yea

R Republican35

35 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 23, 2025

Signed into law

Approved by Governor

executive

Apr 1, 2025

Upper · Passed

Conference Report Adopted

upper

Mar 31, 2025

Lower · Passed

Conference Report Adopted

lower

Mar 28, 2025

Upper · Passed

Conference Report Filed

upper

Mar 10, 2025

Upper · Passed

Passed As Amended

upper

Mar 10, 2025

Upper · Passed

Amended

upper

Mar 4, 2025

Upper · Passed

Title Suff Do Pass As Amended

upper

Feb 17, 2025

Committee

Referred To Finance

upper

Feb 12, 2025

Introduced

Transmitted To Senate

lower

Feb 11, 2025

Lower · Passed

Passed

lower

Jan 28, 2025

Lower · Passed

Title Suff Do Pass Comm Sub

lower

Jan 20, 2025

Committee

Referred To Ways and Means

lower

1 primary · 0 co-sponsors