Tax credits; authorize for contributions by certain taxpayers to certain hospitals.

S. B. No. 3110 *SS08/R1050SG* ~ OFFICIAL ~ R3/5
26/SS08/R1050SG
PAGE 1

To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Taylor

SENATE BILL NO. 3110
(As Sent to Governor)

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT, INSURANCE PREMIUM 1
TAX CREDIT AND AD VALOREM TAX CREDIT FOR VOLUNTARY CASH 2
CONTRIBUTIONS BY CERTAIN TAXPAYERS TO CERTAIN ELIGIBLE HOSPITALS; 3
TO PROVIDE THE CRITERIA THAT A HOSPITAL MUST MEET IN ORDER FOR A 4
CONTRIBUTION TO THE HOSPITAL TO QUALIFY FOR THE TAX CREDIT 5
AUTHORIZED BY THIS ACT; TO LIMIT THE AMOUNT OF THE CREDIT; TO 6
PROVIDE THAT UNUSED PORTIONS OF A CREDIT MAY BE CARRIED FORWARD 7
FOR FIVE CONSECUTIVE YEARS FROM THE CLOSE OF THE TAX YEAR IN WHICH 8
THE CREDIT WAS EARNED; AND FOR RELATED PURPOSES. 9
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 10
SECTION 1. (1) For the purposes of this section, "eligible 11
hospital" means general acute-care hospitals or rural emergency 12
hospitals that have forty-nine (49) or fewer licensed inpatient 13
beds and have an Emergency Department that provides emergency 14
services twenty-four (24) hours a day for each day of a week. In 15
addition, in order to be an "eligible hospital," a hospital must 16
engage, or have already engaged, either independently or jointly 17
with one or more other hospitals, a healthcare consulting firm 18
with expertise and experience in operational and financial 19
optimization of hospitals. The consulting firm will advise and 20
assist in developing an initial strategic plan for the hospital 21
S. B. No. 3110 *SS08/R1050SG* ~ OFFICIAL ~
26/SS08/R1050SG
PAGE 2

and in updating the strategic plan on at least an annual basis. 22
As part of their engagement, the consulting firm will work with 23
hospital leadership and provide input in helping to identify new 24
service offering opportunities, improve or optimize existing 25
service offerings, and to help identify opportunities for 26
efficiency improvements and cost savings. In lieu of engaging a 27
healthcare consulting firm, a hospital may develop its strategic 28
plan from nationally accepted best practices for small or rural 29
hospitals. A hospital also must engage or have already engaged a 30
Certified Public Accountant (CPA) firm with expertise in 31
healthcare and hospital reimbursement and cost reporting. The CPA 32
firm will provide ongoing assistance in the form of reimbursement 33
and cost reporting advisory services and assistance with 34
preparation and filing of annual cost reports. A hospital must 35
have a qualified CPA firm engaged for these services prior to 36
qualifying as an eligible hospital. 37
(2) (a) The tax credit authorized in this section shall be 38
available only to a taxpayer who is a business enterprise engaged 39
in commercial, industrial or professional activities and operating 40
as a corporation, limited liability company, partnership or sole 41
proprietorship. Except as otherwise provided in this section, a 42
credit is allowed against the taxes imposed by Sections 27-7-5, 43
27-15-103, 27-15-109 and 27-15-123, for voluntary cash 44
contributions made by a taxpayer during the taxable year to an 45
eligible hospital. A credit is also allowed against ad valorem 46
S. B. No. 3110 *SS08/R1050SG* ~ OFFICIAL ~
26/SS08/R1050SG
PAGE 3

taxes assessed and levied on real property for voluntary cash 47
contributions made by the taxpayer during the taxable year to an 48
eligible hospital. The amount of credit that may be utilized by a 49
taxpayer in a taxable year shall be limited to (i) an amount not 50
to exceed fifty percent (50%) of the total tax liability of the 51
taxpayer for the taxes imposed by such sections of law and (ii) an 52
amount not to exceed fifty percent (50%) of the total tax 53
liability of the taxpayer for ad valorem taxes assessed and levied 54
on real property. Subject to such limitation on the amount of 55
credit that a taxpayer may utilize in a taxable year, a taxpayer 56
who is allocated a tax credit under this subsection during a 57
calendar year may utilize the credit against the taxes imposed by 58
Sections 27-7-5, 27-15-103, 27-15-109 and 27-15-123 for the 59
immediately preceding taxable year, provided that the taxpayer has 60
not already filed an annual return for such taxes. Any tax credit 61
claimed under this section but not used in any taxable year may be 62
carried forward for five (5) consecutive years from the close of 63
the tax year in which the credits were earned. 64
(b) A contribution for which a credit is claimed under 65
this section may not be used as a deduction by the taxpayer for 66
state income tax purposes. 67
(3) A taxpayer taking a credit authorized by this section 68
shall provide the name of the eligible hospital and the amount of 69
the contribution to the department on forms provided by the 70
department. 71
S. B. No. 3110 *SS08/R1050SG* ~ OFFICIAL ~
26/SS08/R1050SG
PAGE 4

(4) To be considered an eligible hospital, a hospital shall 72
provide the department with a written certification that it meets 73
all criteria to be considered an eligible hospital. The hospital 74
shall also notify the department of any changes that may affect 75
eligibility under this section. 76
(5) The eligible hospital's written certification must be 77
signed by an officer of the hospital under penalty of perjury. 78
The written certification shall include the following: 79
(a) Verification that the hospital meets the definition 80
of eligible hospital under subsection (1)(b) of this section; and 81
(b) Any other information that the department requires 82
to administer this section. 83
(6) The department shall review each written certification 84
and determine whether the hospital meets all the criteria to be 85
considered an eligible hospital and notify the hospital of its 86
determination. The department may also periodically request 87
recertification from the hospital. The department shall compile 88
and make available to the public a list of eligible hospitals. 89
(7) Tax credits authorized by this section that are earned 90
by a partnership, limited liability company, S corporation or 91
other similar pass-through entity, shall be allocated among all 92
partners, members or shareholders, respectively, either in 93
proportion to their ownership interest in such entity or as the 94
partners, members or shareholders mutually agree as provided in an 95
executed document. 96
S. B. No. 3110 *SS08/R1050SG* ~ OFFICIAL ~
26/SS08/R1050SG
PAGE 5

(8) (a) A taxpayer shall apply for credits with the 97
department on forms prescribed by the department. In the 98
application, the taxpayer shall certify to the department the 99
dollar amount of the contributions made or to be made during the 100
calendar year. Within thirty (30) days after the receipt of an 101
application, the department shall allocate credits based on the 102
dollar amount of contributions as certified in the application. 103
However, if the department cannot allocate the full amount of 104
credits certified in the application due to the limit on the 105
aggregate amount of credits that may be awarded under this section 106
in a calendar year, the department shall so notify the applicant 107
within thirty (30) days with the amount of credits, if any, that 108
may be allocated to the applicant in the calendar year. Once the 109
department has allocated credits to a taxpayer, if the 110
contribution for which a credit is allocated has not been made as 111
of the date of the allocation, then the contribution must be made 112
not later than sixty (60) days from the date of the allocation. 113
If the contribution is not made within such time period, the 114
allocation shall be cancelled and returned to the department for 115
reallocation. Upon final documentation of the contributions, if 116
the actual dollar amount of the contributions is lower than the 117
amount estimated, the department shall adjust the tax credit 118
allowed under this section. 119
(b) For the purposes of using a tax credit against ad 120
valorem taxes assessed and levied on real property, a taxpayer 121
S. B. No. 3110 *SS08/R1050SG* ~ OFFICIAL ~
26/SS08/R1050SG
PAGE 6

shall present to the appropriate tax collector the tax credit 122
documentation provided to the taxpayer by the department, and the 123
tax collector shall apply the tax credit against such ad valorem 124
taxes. The tax collector shall forward the tax credit 125
documentation to the department along with the amount of the tax 126
credit applied against ad valorem taxes, and the department shall 127
disburse funds to the tax collector for the amount of the tax 128
credit applied against ad valorem taxes. Such payments by the 129
department shall be made from current tax collections. 130
(9) The amount of credits that may be allocated by the 131
department under this section for voluntary cash contributions to 132
any single eligible hospital during a calendar year shall not 133
exceed One Hundred Thousand Dollars ($100,000.00). The aggregate 134
amount of credits that may be allocated by the department under 135
this section during a calendar year shall not exceed One Million 136
Dollars ($1,000,000.00). The department shall not allocate any 137
credits under this section after December 31, 2029. 138
SECTION 2. Section 1 of this act shall be codified as a new 139
section in Chapter 7, Title 27, Mississippi Code of 1972. 140
SECTION 3. Nothing in this act shall affect or defeat any 141
claim, assessment, appeal, suit, right or cause of action for 142
taxes due or accrued under the income tax laws, insurance premium 143
tax laws or ad valorem tax laws before the date on which this act 144
becomes effective, whether such claims, assessments, appeals, 145
suits or actions have been begun before the date on which this act 146
S. B. No. 3110 *SS08/R1050SG* ~ OFFICIAL ~
26/SS08/R1050SG
PAGE 7
ST: Tax credits; authorize for contributions by
certain taxpayers to certain hospitals.
becomes effective or are begun thereafter; and the provisions of 147
the income tax laws, insurance premium tax laws and ad valorem tax 148
laws are expressly continued in full force, effect and operation 149
for the purpose of the assessment, collection and enrollment of 150
liens for any taxes due or accrued and the execution of any 151
warrant under such laws before the date on which this act becomes 152
effective, and for the imposition of any penalties, forfeitures or 153
claims for failure to comply with such laws. 154
SECTION 4. This act shall take effect and be in force from 155
and after January 1, 2026. 156