35 Miss. Code. R. 3-10-04-104
A corporation or other taxable entity not organized as a nonprofit cooperative marketing association within the scope of the cooperative marketing laws of this state is subject to taxation under the provisions of the Mississippi Income Tax Law in the same manner of any other corporation doing business within the state. Mississippi Law does not conform with Subchapter T of the Internal Revenue Code with respect to the taxation of corporations operating on a cooperative basis. The entire net income of the corporation derived from sources in Mississippi, with the exception of amounts paid in money as patronage dividends to patrons on the basis of the business done with or for such patrons, is subject to the measure of the Mississippi income tax levy. The net income of the corporation (operating on a cooperative basis) shall not be reduced by amount representing qualified written notices of allocation, nonqualified written notices of allocations, per-unit retain allocations, qualified or nonqualified per-unit retain certificates, dividends or other property. Only patronage dividends paid in cash (money) by the corporation to the patron and based solely on business done with or for such patron may be deducted in determining net taxable income of the corporation, other than, of course, ordinary and necessary trade of business expenses.
35 Miss. Code. R. 3-10-04-104