Receive a Tax Credit While Empowering Children to Experience an Improved Quality of Life

A tax credit is available for voluntary cash contributions to an eligible charitable organization. The credit is only available to a taxpayer who is a business enterprise engaged in commercial, industrial or professional activities and operating as a corporation, limited liability company, partnership, or sole proprietorship. A contribution to an eligible charitable organization used for the Eligible Charitable Business Contribution Tax Credit cannot be used for the Charitable Business Contribution Tax Credit or Foster Care Charitable Tax Credit.

“Eligible Charitable Organization” means an organization that is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code and is:

Licensed by or under contract or agreement with the Department of Mississippi Child Protection Services and provides services for children and youth involved with allegations of child abuse, neglect, abandonment, family violence, and need of supervision. Eligibility determination is completed by the Mississippi Department of Revenue.

•  The taxpayer must apply for the tax credit on the form provided by the Mississippi Department of Revenue.

   

•  The taxpayer must certify the dollar amount of the contribution made or to be made during the calendar year.

   

•  Within thirty (30) days after receipt of the application, the Mississippi Department of Revenue shall allocate tax credits based on the dollar amount of the contribution.

   

•  The taxpayer must make the contribution and send the verification of the contribution to the Mississippi Department of Revenue. Verification sent by the taxpayer to Mississippi Department of Revenue must be received within sixty (60) days from the date of the allocation notification.

   

•  If the contribution is not made within sixty (60) days, the allocation will be canceled and returned to the Mississippi Department of Revenue for reallocation.

   

•  Business taxpayers may donate and receive a dollar-for-dollar tax credit for up to 50% of the taxpayer’s Mississippi State tax liability.

   

•  For pass-through entities, each partner, member or shareholder may offset up to 50% of his/her individual Mississippi tax liability if the credit is sufficient.

   

•  You may only claim a tax credit for your charitable contribution on your Mississippi state tax return if the organization is recognized as an Eligible Charitable Organization.

   

•  You cannot claim both deduction and a credit for the same charitable contribution on your Mississippi tax return.

   

•  The Children’s Promise Act tax credit is only a dollar-for-dollar reduction on your Mississippi state taxes. Consult with your tax professional for questions about deductions on your Federal Return.

   

•  The Mississippi Department of Revenue will allocate credits within a calendar year.

   

•  The tax credits authorized under the Children’s Promise Act are limited to $5,000,000 per calendar year.

   

•  The Children’s Promise Act allows for allocations each calendar year beginning January 1, 2019. The Mississippi Department of Revenue shall not allocate any credits after January 1, 2025.

   

•  Charitable Tax Credit dollars may be carried forward for up to five years, reducing future tax liability.