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Gulf Opportunity Zone Act of 2005

Mississippi Economic Impact

This summary of Federal Legislation is intended as a general overview.  The Mississippi Development Authority has no control or influence over the content or implementation of this legislation, and does not administer or approve these programs.  This document lists only selected incentives, and does not address all requirements, exclusions, and limitations outlined in the act.  Eligibility and other requirements related to these incentives should be discussed with the recipient’s tax professionals.

 

The Gulf Opportunity Zone Act of 2005 is federal legislation that was passed by Congress and signed into law by President Bush in December of 2005. This legislation provides for Federal Tax Incentives to areas affected by Hurricanes Katrina, Rita, and Wilma that were designated as warranting individual or public and individual assistance.  Mississippi counties that are included in the Zone for individual and public assistance are:

 


 

Adams

Amite

Attala

Claiborne

Choctaw

Clarke

Copiah

Covington

Forrest

Franklin

George

Greene

Hancock

Harrison

Hinds

Jackson

Jasper

Jefferson

Jefferson Davis

Jones

Kemper

Lamar

Lauderdale

Lawrence

Leake

Lincoln

Lowndes

Madison

Marion

Neshoba

Newton

Noxubee

Oktibbeha

Pearl River

Perry

Pike

Rankin

Scott

Simpson

Smith

Stone

Walthall

Warren

Wayne

Wilkinson

Winston

Yazoo


 

 

Summary of Incentives:

 

Expands low-income housing tax credits within the Zone.  The emergency allocation of low-income housing tax credits is $18 multiplied by Mississippi’s population in the Zone.  (This is up from the existing allocation of $1.90 per capita.)  This allocation is increased for 2006, 2007, and 2008.  Unused allocation amounts may not be carried forward.

Taxpayers with losses associated with public utility property caused by Hurricane Katrina may either carryback a net operating loss attributable to certain casualty losses 10 years, or treat certain casualty losses as having occurred five years prior to the disaster.

 

 

 

*GO Zone bonus depreciation, section 179 expensing, extended NOL carryback, and bonding authority will not be allowed for private or commercial golf courses, country clubs, massage parlors, hot tub facilities, suntan facilities, liquor stores, or gambling or animal racing property.