SB 3168 Mississippi Senate · 2025 Regular Session

Data center enterprises; revise certain definitions and other provisions relating to tax exemptions.

SB 3168 revises Mississippi's tax exemption rules for qualifying data center businesses. It sets investment thresholds: $250 million for new data centers (creating 35+ jobs at 125% of state average wage) or $100 million for expansions, requiring businesses to maintain these standards. The bill automatically grants up to two 10-year tax exemption extensions for expansions (including hardware replacement) and gives businesses 60 days to fix tax compliance issues before losing exemptions. This bill, which died in committee on March 18, 2025, directly affects eligible data center operators seeking sales, use, franchise, and electricity tax exemptions.

Issues: ✗ Budget & Taxes

Bill status died 3 of 5 stages cleared

Introduction

Feb 2025

Committee Review

Feb 2025

Senate Passage

Feb 2025

House Passage

Governor

Introduced Feb 27, 2025 Last action Mar 18, 2025

Maddy AI version diff · 1 comparison

What changed between versions

As Introduced → Current version · 8 edits

MODERATE

This bill significantly revised Mississippi's data center tax exemption program by lowering capital investment thresholds, changing application procedures, and modifying enforcement timelines. The changes make it easier for smaller data center projects to qualify for tax breaks while shifting administrative responsibilities between state agencies.

Scope change

The bill's scope expanded eligibility by reducing minimum capital investment requirements from $250 million to $20 million for new data centers and from $100 million to $20 million for expansions, while also adding a new category for smaller projects.

ELIGIBILITY

Reduced minimum capital investment threshold for new data centers from $250 million to $20 million, and for expansions from $100 million to $20 million.

Reduced minimum job creation requirement from 35 jobs to 20 jobs for qualifying data center projects.

REQUIREMENT

Changed application process so smaller data center projects (under $100 million) apply directly to the Department of Revenue instead of the Mississippi Development Authority.

Added requirement for applications to include pro forma financial statements and data supporting the expertise of project principals.

ENFORCEMENT

Extended the compliance remediation period from an unspecified timeframe to 60 days from notice of noncompliance before tax-exempt status is forfeited.

DEFINITION

Added new definition for 'digital asset' to clarify what types of digital assets are excluded from the tax exemption program.

Clarified 'data center' definition to include 'manipulate' in addition to 'process' digital data.

TIMELINE

Changed effective date to July 1, 2025, with repeal scheduled for June 30, 2025, creating a one-year window for implementation.

Floor votes · Senate Feb 26, 2025

How they voted

51–0

Passed

Total votes 51

Feb 26, 2025

D Democratic16

16 Yea

100% 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

Feb 28, 2025

Committee

Referred To State Affairs;Ways and Means

lower

Feb 27, 2025

Introduced

Transmitted To House

upper

Feb 26, 2025

Upper · Passed

Passed

upper

Feb 25, 2025

Upper · Passed

Title Suff Do Pass

upper

Feb 24, 2025

Committee

Referred To Finance

upper

1 primary · 0 co-sponsors