Bill > HB395

This bill amends Mississippi law to increase the total amount of income tax and ad valorem tax credits that can be allocated by the Department of Revenue each calendar year for voluntary cash contributions made by individual taxpayers to qualifying charitable organizations and qualifying foster care charitable organizations. Specifically, the bill raises the aggregate limit on these tax credits from $1,000,000 to $3,000,000 annually, starting in calendar year 2026, after a temporary increase to $1,000,000 through calendar year 2025. Qualifying charitable organizations are defined as those exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code or designated community action agencies that spend a significant portion of their budget on services to low-income residents or those receiving temporary assistance for needy families (TANF) benefits in Mississippi, with specific rules for organizations that operate nationally but still serve Mississippi residents. Qualifying foster care charitable organizations are a subset of these that also provide services to at least 100 children in foster care or at risk of entering foster care in the state. The bill also clarifies that these credits are in lieu of federal tax deductions and outlines the certification and application processes for both taxpayers and the organizations.

Budget and Finance

https://billstatus.ls.state.ms.us/2026/pdf/history/HB/HB0395.xml