Mississippi Children’s Promise Act Tax Credit

The Mississippi Children’s Promise Act provides a tax credit to individuals and businesses who make donations to qualified charitable organizations. The tax credit amount is capped at $9 million per year on a first-come, first-serve basis. Corporations and insurance companies with a Mississippi corporate income, insurance premium, or insurance retaliatory tax liability may apply for the credits. Pregnancy resource centers, foster care, and adoption nonprofits can also benefit from the tax credit. The credit excludes organizations that provide or pay for abortion services.

Mississippi Children’s Promise Act Tax Credit Eligibility

Individuals can claim up to $3,000 filing jointly or $1,500 single, and any unused credit may be carried forward for five years. To claim the credit, donors must designate a portion of their state tax liability to Canopy and submit an online Mississippi Department of Revenue application. The credit is available to individuals who make voluntary cash contributions to a Qualified Foster Care Charitable Organization (QFCCO) and/or a Eligible Transitional Home Organization (ETHO). Hope Village for Children is registered with the Mississippi Department of Revenue as a QFCCO.

To claim the tax credit, an individual must complete a tax credit application on the Mississippi Department of Revenue website and certify that they have made or will make contributions to an eligible charitable organization as defined in the statute. The Mississippi Department of Revenue will issue the taxpayer a notice within thirty (30) days of receipt of an approved application. Upon receiving the notice, the taxpayer must contribute to an ECO that is designated in the application within sixty (60) days or return the tax credit allocation to the Mississippi Department of Revenue for reallocation.

Individual taxpayers can also apply for this tax credit. This credit is available against Mississippi state income tax, insurance premium tax, and insurance retaliatory tax. The credit may be carried forward for up to five years. The Mississippi Children Promise Act credit is administered through the Mississippi Department of Revenue.

You can find a list of eligible organizations on the Mississippi Department of Revenue website: https://www.dor.ms.gov/business/eligible-charitable-organizations-childrens-promise-act

Limitations

• Credit allocations are limited and may run out before the end of the year.
• Unused credits can be carried forward for five years.
• The credit cannot exceed your total tax liability.