Pregnancy Resource Act; revise tax credits authorized for contributions to certain charitable organizations.

S. B. No. 3124 *SS36/R1305SG* ~ OFFICIAL ~ R3/5
26/SS36/R1305SG
PAGE 1

To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Harkins, England, Hill

SENATE BILL NO. 3124
(As Sent to Governor)

AN ACT TO AMEND SECTION 27-7-22.43, MISSISSIPPI CODE OF 1972, 1
TO REVISE THE DEFINITION OF "ELIGIBLE CHARITABLE ORGANIZATION" 2
UNDER THE PREGNANCY RESOURCE ACT; TO MAKE THE STATE INCOME TAX 3
CREDIT UNDER THE ACT AVAILABLE TO TAXPAYERS THAT ARE NOT BUSINESS 4
ENTERPRISES; TO REVISE THE REQUIREMENTS OF AN ELIGIBLE CHARITABLE 5
ORGANIZATION'S WRITTEN CERTIFICATION; AND FOR RELATED PURPOSES. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 7
SECTION 1. Section 27-7-22.43, Mississippi Code of 1972, is 8
amended as follows: 9
27-7-22.43. (1) This section shall be known and may be 10
cited as the "Pregnancy Resource Act." 11
(2) For the purposes of this section, the following words 12
and phrases shall have the meanings ascribed in this section 13
unless the context clearly indicates otherwise: 14
(a) "Department" means the Department of Revenue. 15
(b) "Eligible charitable organization" means an 16
organization that is exempt from federal income taxation under 17
Section 501(c)(3) of the Internal Revenue Code and is a pregnancy 18
resource center or crisis pregnancy center. To be considered an 19
S. B. No. 3124 *SS36/R1305SG* ~ OFFICIAL ~
26/SS36/R1305SG
PAGE 2

"eligible charitable organization" a pregnancy resource center or 20
crisis pregnancy center must meet the following criteria: 21
(i) Certify that no more than twenty percent (20%) 22
of the contributions received under this section will be spent on 23
administrative purposes; 24
(ii) File annually with the Secretary of State the 25
organization's publicly available Internal Revenue Service 26
filings * * *; 27
(iii) Maintain in this state a physical office, 28
clinic, or maternity home and regularly answer a dedicated phone 29
line; 30
(iv) Exclusively offer services or direct 31
financial assistance, with the express purposes of providing 32
assistance to carry a pregnancy to term or to encourage parenting, 33
marriage, or adoption as an alternative to abortion; and 34
(v) Not make referrals or facilitate in any way 35
any abortion as defined by Section 41-41-45(1) or refer for or 36
facilitate use of any abortion inducing drug as defined by Section 37
41-41-105. 38
(3) (a) For calendar years through 2025, the tax credit 39
authorized in this section shall be available only to a taxpayer 40
who is a business enterprise engaged in commercial, industrial or 41
professional activities and operating as a corporation, limited 42
liability company, partnership or sole proprietorship; thereafter, 43
the tax credit authorized in this section shall also be available 44
S. B. No. 3124 *SS36/R1305SG* ~ OFFICIAL ~
26/SS36/R1305SG
PAGE 3

to taxpayers that are not business enterprises. Except as 45
otherwise provided in this section, a credit is allowed against 46
the taxes imposed by Sections 27-7-5, 27-15-103, 27-15-109 and 47
27-15-123, for voluntary cash contributions made by a taxpayer 48
during the taxable year to an eligible charitable organization. 49
For calendar year 2022, for a taxpayer that is not operating as a 50
corporation, a credit is also allowed against ad valorem taxes 51
assessed and levied on real property for voluntary cash 52
contributions made by the taxpayer during the taxable year to an 53
eligible charitable organization. From and after January 1, 2023, 54
a credit is also allowed against ad valorem taxes assessed and 55
levied on real property for voluntary cash contributions made by a 56
taxpayer during the taxable year to an eligible charitable 57
organization. The amount of credit that may be utilized by a 58
taxpayer in a taxable year shall be limited to (i) an amount not 59
to exceed fifty percent (50%) of the total tax liability of the 60
taxpayer for the taxes imposed by such sections of law and (ii) an 61
amount not to exceed fifty percent (50%) of the total tax 62
liability of the taxpayer for ad valorem taxes assessed and levied 63
on real property. Any tax credit claimed under this section but 64
not used in any taxable year may be carried forward for five (5) 65
consecutive years from the close of the tax year in which the 66
credits were earned. 67
S. B. No. 3124 *SS36/R1305SG* ~ OFFICIAL ~
26/SS36/R1305SG
PAGE 4

(b) A contribution for which a credit is claimed under 68
this section may not be used as a deduction by the taxpayer for 69
state income tax purposes. 70
(4) Taxpayers taking a credit authorized by this section 71
shall provide the name of the eligible charitable organization and 72
the amount of the contribution to the department on forms provided 73
by the department. 74
(5) An eligible charitable organization shall provide the 75
department with a written certification that it meets all criteria 76
to be considered an eligible charitable organization. The 77
organization shall also notify the department of any changes that 78
may affect eligibility under this section. 79
(6) The eligible charitable organization's written 80
certification must be signed by an officer of the organization 81
under penalty of perjury. The written certification shall include 82
the following: 83
(a) Verification of the organization's status under 84
Section 501(c)(3) of the Internal Revenue Code; 85
(b) A statement that the organization does not provide, 86
pay for, prescribe, distribute, refer for, promote or provide 87
coverage of * * * any abortion as defined by Section 41-41-45(1) 88
or any abortion-inducing drug as defined by Section 41-41-105, and 89
does not financially support or affiliate with any other entity 90
that provides, pays for, prescribes, distributes, refers for, 91
promotes or provides coverage of * * * any abortion; 92
S. B. No. 3124 *SS36/R1305SG* ~ OFFICIAL ~
26/SS36/R1305SG
PAGE 5

(c) A statement that the organization: 93
(i) Does not receive more than fifty percent (50%) 94
of its total annual revenue from a federal, state, or local 95
governmental agency, either directly or as a contractor of such an 96
agency, and does not receive funding under 42 USC Section 300 et 97
seq., or 42 USC Sections 701 through 709, and 711 through 713; and 98
(ii) Serves clients who are full-time or part-time 99
residents of this state; and 100
( * * *d) Any other information that the department 101
requires to administer this section. 102
(7) The department shall review each written certification 103
and determine whether the organization meets all the criteria to 104
be considered an eligible charitable organization and notify the 105
organization of its determination. The department may also 106
periodically request recertification from the organization. The 107
department shall compile and make available to the public a list 108
of eligible charitable organizations. 109
(8) Tax credits authorized by this section that are earned 110
by a partnership, limited liability company, S corporation or 111
other similar pass-through entity, shall be allocated among all 112
partners, members or shareholders, respectively, either in 113
proportion to their ownership interest in such entity or as the 114
partners, members or shareholders mutually agree as provided in an 115
executed document. 116
S. B. No. 3124 *SS36/R1305SG* ~ OFFICIAL ~
26/SS36/R1305SG
PAGE 6

(9) (a) A taxpayer shall apply for credits with the 117
department on forms prescribed by the department. In the 118
application the taxpayer shall certify to the department the 119
dollar amount of the contributions made or to be made during the 120
calendar year. Within thirty (30) days after the receipt of an 121
application, the department shall allocate credits based on the 122
dollar amount of contributions as certified in the application. 123
However, if the department cannot allocate the full amount of 124
credits certified in the application due to the limit on the 125
aggregate amount of credits that may be awarded under this section 126
in a calendar year, the department shall so notify the applicant 127
within thirty (30) days with the amount of credits, if any, that 128
may be allocated to the applicant in the calendar year. Once the 129
department has allocated credits to a taxpayer, if the 130
contribution for which a credit is allocated has not been made as 131
of the date of the allocation, then the contribution must be made 132
not later than sixty (60) days from the date of the allocation. 133
If the contribution is not made within such time period, the 134
allocation shall be cancelled and returned to the department for 135
reallocation. Upon final documentation of the contributions, if 136
the actual dollar amount of the contributions is lower than the 137
amount estimated, the department shall adjust the tax credit 138
allowed under this section. 139
(b) For the purposes of using a tax credit against ad 140
valorem taxes assessed and levied on real property, a taxpayer 141
S. B. No. 3124 *SS36/R1305SG* ~ OFFICIAL ~
26/SS36/R1305SG
PAGE 7
ST: Pregnancy Resource Act; revise tax credits
authorized for contributions to certain
charitable organizations.
shall present to the appropriate tax collector the tax credit 142
documentation provided to the taxpayer by the Department of 143
Revenue, and the tax collector shall apply the tax credit against 144
such ad valorem taxes. The tax collector shall forward the tax 145
credit documentation to the Department of Revenue along with the 146
amount of the tax credit applied against ad valorem taxes, and the 147
department shall disburse funds to the tax collector for the 148
amount of the tax credit applied against ad valorem taxes. Such 149
payments by the Department of Revenue shall be made from current 150
tax collections. 151
(10) The aggregate amount of tax credits that may be 152
allocated by the department under this section during a calendar 153
year shall not exceed Three Million Five Hundred Thousand Dollars 154
($3,500,000.00). However, for calendar year 2023, and for each 155
calendar year thereafter, the aggregate amount of tax credits that 156
may be allocated by the department under this section during a 157
calendar year shall not exceed Ten Million Dollars 158
($10,000,000.00). For credits allocated during a calendar year 159
for contributions to eligible charitable organizations, no more 160
than twenty-five percent (25%) of such credits may be allocated 161
for contributions to a single eligible charitable organization; 162
however, credits not allocated before June 1, may be allocated 163
without regard to such restriction for the same calendar year. 164
SECTION 2. This act shall take effect and be in force from 165
and after January 1, 2026. 166