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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representative Lamar
HOUSE BILL NO. 1944
(As Sent to Governor)
AN ACT TO AMEND SECTION 27-7-22.41, MISSISSIPPI CODE OF 1972, 1
WHICH PROVIDES AN INCOME TAX CREDIT, INSURANCE PREMIUM TAX CREDIT 2
AND AD VALOREM TAX CREDIT FOR CONTRIBUTIONS MADE BY CERTAIN 3
TAXPAYERS TO CERTAIN ELIGIBLE CHARITABLE ORGANIZATIONS, TO INCLUDE 4
WITHIN THE DEFINITION OF "ELIGIBLE CHARITABLE ORGANIZATION" A 5
SPECIAL-PURPOSE SCHOOL AS DEFINED BY THE STATE DEPARTMENT OF 6
EDUCATION THAT IS ORGANIZED TO SERVE STUDENTS WITH PHYSICAL, 7
INTELLECTUAL, DEVELOPMENTAL OR EMOTIONAL DISABILITIES AND THAT IS 8
NOT FOR PROFIT; TO PROVIDE THE MAXIMUM AGGREGATE AMOUNT OF TAX 9
CREDITS THAT MAY BE ALLOCATED BY THE DEPARTMENT OF REVENUE 10
ANNUALLY FOR CONTRIBUTIONS TO SUCH SCHOOLS; TO PROVIDE THE MAXIMUM 11
AMOUNT OF CREDITS THAT MAY BE ALLOCATED ANNUALLY FOR CONTRIBUTIONS 12
TO ANY SINGLE ELIGIBLE CHARITABLE ORGANIZATION AND/OR SCHOOL 13
LOCATION; TO REDUCE THE PERCENTAGE OF CREDITS THAT MAY BE 14
ALLOCATED TO A SINGLE EDUCATIONAL SERVICES CHARITABLE ORGANIZATION 15
CERTIFIED BY THE DEPARTMENT OF REVENUE DURING A CALENDAR YEAR; AND 16
FOR RELATED PURPOSES. 17
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 18
SECTION 1. Section 27-7-22.41, Mississippi Code of 1972, is 19
amended as follows: 20
27-7-22.41. (1) For the purposes of this section, the 21
following words and phrases shall have the meanings ascribed in 22
this section unless the context clearly indicates otherwise: 23
(a) "Department" means the Department of Revenue. 24
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(b) "Eligible charitable organization" means an 25
organization that is exempt from federal income taxation under 26
Section 501(c)(3) of the Internal Revenue Code and is: 27
(i) Licensed by or under contract with the 28
Mississippi Department of Child Protection Services and provides 29
services for: 30
1. The prevention and diversion of children 31
from custody with the Department of Child Protection Services, 32
2. The safety, care and well-being of 33
children in custody with the Department of Child Protection 34
Services, or 35
3. The express purpose of creating permanency 36
for children through adoption; * * * 37
(ii) Certified by the department as an educational 38
services charitable organization that is accredited by a regional 39
accrediting organization and provides services to: 40
1. Children in a foster care placement 41
program established by the Department of Child Protection 42
Services, children placed under the Safe Families for Children 43
model, or children at significant risk of entering a foster care 44
placement program established by the Department of Child 45
Protection Services, 46
2. Children who have a chronic illness or 47
physical, intellectual, developmental or emotional disability, or 48
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3. Children eligible for free or reduced 49
price meals programs under Section 37-11-7, or selected for 50
participation in the Promise Neighborhoods Program sponsored by 51
the U.S. Department of Education * * *; or 52
(iii) A special-purpose school as defined by the 53
State Department of Education that is organized to serve students 54
with physical, intellectual, developmental or emotional 55
disabilities and that is not for profit. 56
(2) (a) The tax credit authorized in this section shall be 57
available only to a taxpayer who is a business enterprise engaged 58
in commercial, industrial or professional activities and operating 59
as a corporation, limited liability company, partnership or sole 60
proprietorship. Except as otherwise provided in this section, a 61
credit is allowed against the taxes imposed by Sections 27-7-5, 62
27-15-103, 27-15-109 and 27-15-123, for voluntary cash 63
contributions made by a taxpayer during the taxable year to an 64
eligible charitable organization. From and after January 1, 2022, 65
for a taxpayer that is not operating as a corporation, a credit is 66
also allowed against ad valorem taxes assessed and levied on real 67
property for voluntary cash contributions made by the taxpayer 68
during the taxable year to an eligible charitable organization. 69
The amount of credit that may be utilized by a taxpayer in a 70
taxable year shall be limited to (i) an amount not to exceed fifty 71
percent (50%) of the total tax liability of the taxpayer for the 72
taxes imposed by such sections of law and (ii) an amount not to 73
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exceed fifty percent (50%) of the total tax liability of the 74
taxpayer for ad valorem taxes assessed and levied on real 75
property. Any tax credit claimed under this section but not used 76
in any taxable year may be carried forward for five (5) 77
consecutive years from the close of the tax year in which the 78
credits were earned. 79
(b) A contribution to an eligible charitable 80
organization for which a credit is claimed under this section does 81
not qualify for and shall not be included in any credit that may 82
be claimed under Section 27-7-22.39. 83
(c) A contribution for which a credit is claimed under 84
this section may not be used as a deduction by the taxpayer for 85
state income tax purposes. 86
(3) Taxpayers taking a credit authorized by this section 87
shall provide the name of the eligible charitable organization and 88
the amount of the contribution to the department on forms provided 89
by the department. 90
(4) An eligible charitable organization shall provide the 91
department with a written certification that it meets all criteria 92
to be considered an eligible charitable organization. An eligible 93
charitable organization must also provide the department with 94
written documented proof of its license and/or written contract 95
with the Mississippi Department of Child Protection Services. The 96
organization shall also notify the department of any changes that 97
may affect eligibility under this section. 98
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(5) The eligible charitable organization's written 99
certification must be signed by an officer of the organization 100
under penalty of perjury. The written certification shall include 101
the following: 102
(a) Verification of the organization's status under 103
Section 501(c)(3) of the Internal Revenue Code; 104
(b) A statement that the organization does not provide, 105
pay for or provide coverage of abortions and does not financially 106
support any other entity that provides, pays for or provides 107
coverage of abortions; 108
(c) A statement that the funds generated from the tax 109
credit shall be used for educational resources, staff and 110
expenditures and/or other purposes described in this section. 111
(d) Any other information that the department requires 112
to administer this section. 113
(6) The department shall review each written certification 114
and determine whether the organization meets all the criteria to 115
be considered an eligible charitable organization and notify the 116
organization of its determination. The department may also 117
periodically request recertification from the organization. The 118
department shall compile and make available to the public a list 119
of eligible charitable organizations. 120
(7) Tax credits authorized by this section that are earned 121
by a partnership, limited liability company, S corporation or 122
other similar pass-through entity, shall be allocated among all 123
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partners, members or shareholders, respectively, either in 124
proportion to their ownership interest in such entity or as the 125
partners, members or shareholders mutually agree as provided in an 126
executed document. 127
(8) (a) A taxpayer shall apply for credits with the 128
department on forms prescribed by the department. In the 129
application the taxpayer shall certify to the department the 130
dollar amount of the contributions made or to be made during the 131
calendar year. Within thirty (30) days after the receipt of an 132
application, the department shall allocate credits based on the 133
dollar amount of contributions as certified in the application. 134
However, if the department cannot allocate the full amount of 135
credits certified in the application due to the limit on the 136
aggregate amount of credits that may be awarded under this section 137
in a calendar year, the department shall so notify the applicant 138
within thirty (30) days with the amount of credits, if any, that 139
may be allocated to the applicant in the calendar year. Once the 140
department has allocated credits to a taxpayer, if the 141
contribution for which a credit is allocated has not been made as 142
of the date of the allocation, then the contribution must be made 143
not later than sixty (60) days from the date of the allocation. 144
If the contribution is not made within such time period, the 145
allocation shall be cancelled and returned to the department for 146
reallocation. Upon final documentation of the contributions, if 147
the actual dollar amount of the contributions is lower than the 148
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amount estimated, the department shall adjust the tax credit 149
allowed under this section. 150
(b) A taxpayer who applied for a tax credit under this 151
section during calendar year 2020, but who was unable to be 152
awarded the credit due to the limit on the aggregate amount of 153
credits authorized for calendar year 2020, shall be given priority 154
for tax credits authorized to be allocated to taxpayers under this 155
section by Section 27-7-22.39. 156
(c) For the purposes of using a tax credit against ad 157
valorem taxes assessed and levied on real property, a taxpayer 158
shall present to the appropriate tax collector the tax credit 159
documentation provided to the taxpayer by the Department of 160
Revenue, and the tax collector shall apply the tax credit against 161
such ad valorem taxes. The tax collector shall forward the tax 162
credit documentation to the Department of Revenue along with the 163
amount of the tax credit applied against ad valorem taxes, and the 164
department shall disburse funds to the tax collector for the 165
amount of the tax credit applied against ad valorem taxes. Such 166
payments by the Department of Revenue shall be made from current 167
tax collections. 168
(9) * * * (a) For calendar year 2023, and for each calendar 169
year thereafter, the aggregate amount of tax credits that may be 170
allocated by the department * * * for contributions to eligible 171
charitable organizations described in subsection (1)(b)(i) and 172
(1)(b)(ii) of this section, collectively, during a calendar year 173
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shall not exceed Eighteen Million Dollars ($18,000,000.00). For 174
calendar year 2021, and for each calendar year thereafter, fifty 175
percent (50%) of the tax credits allocated during a calendar year 176
for contributions to eligible charitable organizations described 177
in subsection (1)(b)(i) and (1)(b)(ii) of this section, 178
collectively, shall be allocated for contributions to eligible 179
charitable organizations described in subsection (1)(b)(i) of this 180
section, and fifty percent (50%) of the tax credits allocated 181
during a calendar year shall be allocated for contributions to 182
eligible charitable organizations described in subsection 183
(1)(b)(ii) of this section. For calendar year 2021, and for each 184
calendar year thereafter, for credits allocated during a calendar 185
year for contributions to eligible charitable organizations 186
described in subsection (1)(b)(i) of this section, no more than 187
twenty-five percent (25%) of such credits may be allocated for 188
contributions to a single eligible charitable organization. 189
Except as otherwise provided in this section, for calendar year 190
2021, and for each calendar year thereafter through 2026, for 191
credits allocated during a calendar year for contributions to 192
eligible charitable organizations described in subsection 193
(1)(b)(ii) of this section, no more than four and one-half percent 194
(4-1/2%) of such credits may be allocated for contributions to a 195
single eligible charitable organization, and for calendar year 196
2027, and for each calendar year thereafter, for credits allocated 197
during a calendar year for contributions to eligible charitable 198
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ST: Taxation; revise credits authorized for
contributions to certain eligible charitable
organizations.
organizations described in subsection (1)(b)(ii) of this section, 199
no more than four percent (4%) of such credits may be allocated 200
for contributions to a single eligible charitable organization. 201
(b) The aggregate amount of tax credits that may be 202
allocated by the department for contributions to eligible 203
charitable organizations described in subsection (1)(b)(iii) of 204
this section during a calendar year shall not exceed Six Million 205
Dollars ($6,000,000.00). Credits allocated for contributions to 206
any single eligible charitable organization described in 207
subsection (1)(b)(iii) of this section shall not exceed One 208
Million Two Hundred Fifty Thousand Dollars ($1,250,000.00) across 209
all school locations and shall not exceed Five Hundred Thousand 210
Dollars ($500,000.00) for each school location. 211
SECTION 2. This act shall take effect and be in force from 212
and after January 1, 2026. 213