Income tax; authorize a credit for contributions made to certain hospitals.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Yancey

HOUSE BILL NO. 990

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR VOLUNTARY CASH 1
CONTRIBUTIONS BY TAXPAYERS TO RURAL HOSPITALS; TO LIMIT THE AMOUNT 2
OF THE CREDIT; TO PROVIDE THAT UNUSED PORTIONS OF A CREDIT MAY BE 3
CARRIED FORWARD FOR FIVE CONSECUTIVE YEARS FROM THE CLOSE OF THE 4
TAX YEAR IN WHICH THE CREDIT WAS EARNED; TO PROVIDE THAT 5
CONTRIBUTIONS FOR WHICH CREDITS ARE CLAIMED UNDER THIS ACT MAY NOT 6
BE USED AS DEDUCTIONS FOR STATE TAX PURPOSES; TO PROVIDE THE 7
CRITERIA THAT A HOSPITAL MUST MEET IN ORDER FOR A CONTRIBUTION TO 8
THE HOSPITAL TO QUALIFY FOR THE CREDIT AUTHORIZED BY THIS ACT; AND 9
FOR RELATED PURPOSES. 10
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 11
SECTION 1. (1) For the purposes of this section, the 12
following words and phrases shall have the meanings ascribed in 13
this section unless the context clearly indicates otherwise: 14
(a) "Department" means the Department of Revenue. 15
(b) "Rural hospital" means a licensed hospital that has 16
fifty (50) or fewer licensed beds. 17
(c) "Voluntary cash contribution" means a cash 18
contribution made to a rural hospital by the taxpayer applying for 19
a credit and does not include payment for or the donation of 20
merchandise, services or goods. 21
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(2) (a) (i) The tax credit authorized in this subsection 22
shall be available only to a taxpayer who is a business enterprise 23
engaged in commercial, industrial or professional activities and 24
operating as a corporation, limited liability company, partnership 25
or sole proprietorship. Except as otherwise provided in this 26
subsection, a credit is allowed against the taxes imposed by this 27
chapter for voluntary cash contributions made by a taxpayer during 28
a taxable year to a rural hospital. The amount of credit that may 29
be utilized by a taxpayer in a taxable year shall be limited to an 30
amount not to exceed the lesser of the amount contributed during a 31
taxable year or seventy-five percent (75%) of the total tax 32
liability of the taxpayer for the taxable year. Any tax credit 33
claimed under this subsection but not used in any taxable year may 34
be carried forward for five (5) consecutive years from the close 35
of the taxable year in which the credits were earned. 36
(ii) A contribution to a rural hospital for which 37
a credit is claimed under this subsection does not qualify for and 38
shall not be included in any credit that may be claimed under 39
subsection (3) of this section. 40
(iii) A contribution for which a credit is claimed 41
under this subsection may not be used as a deduction by the 42
taxpayer for state income tax purposes. 43
(b) A taxpayer claiming a credit authorized by this 44
subsection shall provide the name of the rural hospital and the 45
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amount of the contribution to the department on forms provided by 46
the department. 47
(c) A rural hospital shall provide the department with 48
a written certification that it meets the criteria to be 49
considered a rural hospital. The rural hospital shall also notify 50
the department of any changes that may affect eligibility under 51
this subsection. 52
(d) The department shall review each written 53
certification and determine whether the hospital meets the 54
criteria to be considered a rural hospital and notify the hospital 55
of its determination. The department may also periodically 56
request recertification from the hospital. The department shall 57
compile and make available to the public a list of eligible rural 58
hospitals. 59
(e) Tax credits authorized by this subsection that are 60
earned by a partnership, limited liability company, S corporation 61
or other similar pass-through entity, shall be allocated among all 62
partners, members or shareholders, respectively, either in 63
proportion to their ownership interest in such entity or as the 64
partners, members or shareholders mutually agree as provided in an 65
executed document. 66
(f) A taxpayer shall apply for credits with the 67
department on forms prescribed by the department. In the 68
application the taxpayer shall certify to the department the 69
dollar amount of the contributions made or to be made during the 70
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calendar year. Within thirty (30) days after the receipt of an 71
application, the department shall allocate credits based on the 72
dollar amount of contributions as certified in the application. 73
However, if the department cannot allocate the full amount of 74
credits certified in the application due to the limit on the 75
aggregate amount of credits that may be awarded under this 76
subsection in a calendar year, the department shall so notify the 77
applicant within thirty (30) days with the amount of credits, if 78
any, that may be allocated to the applicant in the calendar year. 79
Once the department has allocated credits to a taxpayer, if the 80
contribution for which a credit is allocated has not been made as 81
of the date of the allocation, then the contribution must be made 82
not later than sixty (60) days from the date of the allocation. 83
Documentation of the contribution must be received by the 84
department within seventy-five (75) days from the date of the 85
allocation or January 15 of the following year, whichever occurs 86
first. If the contribution is not made or the department does not 87
receive documentation of the contribution within such time period, 88
the allocation of credit shall be cancelled and returned to the 89
department for reallocation. Upon final documentation of the 90
contributions, if the actual dollar amount of the contributions is 91
lower than the amount estimated, the department shall adjust the 92
tax credit allowed under this subsection. 93
(g) The aggregate amount of tax credits that may be 94
allocated by the department under this subsection during a 95
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calendar year shall not exceed Fifteen Million Dollars 96
($15,000,000.00). 97
(h) The department shall not allocate any credits 98
under this subsection after December 31, 2030. 99
(3) (a) (i) Except as otherwise provided in this 100
subsection, a credit is allowed against the taxes imposed by this 101
chapter for voluntary cash contributions made by a taxpayer during 102
a taxable year to a rural hospital. The amount of credit that may 103
be utilized by a taxpayer in a taxable year shall not exceed: 104
1. The lesser of the amount contributed 105
during a taxable year or the total tax liability of the taxpayer 106
for the taxable year for a single individual or a head of 107
household. 108
2. The lesser of the amount contributed 109
during a calendar year or the total tax liability of the taxpayer 110
for the taxable year for a married couple filing a joint return. 111
A husband and wife who file separate returns for a taxable year in 112
which they could have filed a joint return may each claim only 113
one-half (1/2) of the tax credit that would have been allowed for 114
a joint return. 115
(ii) Any tax credit claimed under this subsection 116
but not used in any taxable year may be carried forward for five 117
(5) consecutive years from the close of the taxable year in which 118
the credits were earned. 119
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(iii) A contribution to a rural hospital for which 120
a credit is claimed under this subsection does not qualify for and 121
shall not be included in any credit that may be claimed under 122
subsection (2) of this section. 123
(iv) A contribution for which a credit is claimed 124
under this subsection may not be used as a deduction by the 125
taxpayer for state income tax purposes. 126
(b) A taxpayer claiming a credit authorized by this 127
subsection shall provide the name of the rural hospital and the 128
amount of the contribution to the department on forms provided by 129
the department. 130
(c) A rural hospital shall provide the department with 131
a written certification that it meets the criteria to be 132
considered a rural hospital. The rural hospital shall also notify 133
the department of any changes that may affect eligibility under 134
this subsection. 135
(d) The department shall review each written 136
certification and determine whether the hospital meets the 137
criteria to be considered a rural hospital and notify the hospital 138
of its determination. The department may also periodically 139
request recertification from the hospital. The department shall 140
compile and make available to the public a list of eligible rural 141
hospitals. 142
(e) A taxpayer shall apply for credits with the 143
department on forms prescribed by the department. In the 144
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application the taxpayer shall certify to the department the 145
dollar amount of the contributions made or to be made during the 146
calendar year. Within thirty (30) days after the receipt of an 147
application, the department shall allocate credits based on the 148
dollar amount of contributions as certified in the application. 149
However, if the department cannot allocate the full amount of 150
credits certified in the application due to the limit on the 151
aggregate amount of credits that may be awarded under this 152
subsection in a calendar year, the department shall so notify the 153
applicant within thirty (30) days with the amount of credits, if 154
any, that may be allocated to the applicant in the calendar year. 155
Once the department has allocated credits to a taxpayer, if the 156
contribution for which a credit is allocated has not been made as 157
of the date of the allocation, then the contribution must be made 158
not later than sixty (60) days from the date of the allocation. 159
Documentation of the contribution must be received by the 160
department within seventy-five (75) days from the date of the 161
allocation or January 15 of the following year, whichever occurs 162
first. If the contribution is not made or the department does not 163
receive documentation of the contribution within such time period, 164
the allocation of credit shall be cancelled and returned to the 165
department for reallocation. Upon final documentation of the 166
contributions, if the actual dollar amount of the contributions is 167
lower than the amount estimated, the department shall adjust the 168
tax credit allowed under this subsection. 169
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ST: Income tax; authorize a credit for
contributions made to certain hospitals.
(f) The aggregate amount of tax credits that may be 170
allocated by the department under this subsection during a 171
calendar year shall not exceed Five Million Dollars 172
($5,000,000.00). 173
(g) The department shall not allocate any credits 174
under this subsection after December 31, 2030. 175
SECTION 2. Section 1 of this act shall be codified as a new 176
section in Chapter 7, Title 27, Mississippi Code of 1972. 177
SECTION 3. Nothing in this act shall affect or defeat any 178
claim, assessment, appeal, suit, right or cause of action for 179
taxes due or accrued under the income tax laws before the date on 180
which this act becomes effective, whether such claims, 181
assessments, appeals, suits or actions have been begun before the 182
date on which this act becomes effective or are begun thereafter; 183
and the provisions of the income tax laws are expressly continued 184
in full force, effect and operation for the purpose of the 185
assessment, collection and enrollment of liens for any taxes due 186
or accrued and the execution of any warrant under such laws before 187
the date on which this act becomes effective, and for the 188
imposition of any penalties, forfeitures or claims for failure to 189
comply with such laws. 190
SECTION 4. This act shall take effect and be in force from 191
and after January 1, 2026. 192