Bill > HB1687

This bill establishes a tax credit program for business enterprises that make voluntary cash contributions to certain charitable organizations focused on youth development in Mississippi. Specifically, the bill allows businesses operating as corporations, limited liability companies, partnerships, or sole proprietorships to receive tax credits for contributions to 501(c)(3) nonprofits that provide programs advancing youth education, physical development, social-emotional growth, and workforce development. The tax credits can be applied against income taxes, insurance premium taxes, and ad valorem (property) taxes, with each credit limited to 50% of the taxpayer's total tax liability in those categories. Unused credits can be carried forward for up to five consecutive years. The total aggregate amount of tax credits that can be allocated in a calendar year is capped at $250,000, and businesses must apply for credits through the Mississippi Department of Revenue, which will review and allocate them. To qualify, charitable organizations must provide written certification of their tax-exempt status and commitment to youth development programs. The bill will take effect on January 1, 2025, and is designed to incentivize business contributions to nonprofit organizations supporting youth in Mississippi.