Mississippi allows health care zones near qualifying hospitals or colleges

The Mississippi Development Authority may certify a health care industry zone if the area and facility meet the location rules and local zoning allows the facility. The area must be within eight miles of a hospital with at least 25 acute-care beds or a qualifying college. Local zoning must allow the facility’s construction or operation. A college must be accredited and award degrees or train workers in health care or pharmaceutical fields. It must be along or near Mississippi Highway 67 within a master planned community. A facility that needs a certificate of need must comply with the related state requirements to qualify as a certified business. The act takes effect July 1, 2026.

Qualified businesses in a health care industry zone that build or renovate a health care facility qualify for listed tax incentives. These provisions cover qualified businesses in a certified health care industry zone that build or renovate a health care facility. Businesses must apply to the Mississippi Development Authority and meet the chapter’s requirements. The incentives include accelerated income tax depreciation, a sales tax exemption, and property tax options. The act takes effect July 1, 2026.

The health care industry zone program and the related sales tax exemption remain in effect until their stated repeal date. The repeal applies to the Health Care Industry Zone Act and the sales tax exemption for building materials, machinery, and equipment used by qualified health care businesses. The repeal applies from and after July 1, 2028.