State Nonprofit Tax Credits Available Jan 1 | News
Mississippi taxpayers can ease their financial burden for the upcoming tax season with credit to nonprofit organizations in the state.
The Mississippi Children’s Promise Act provides a tax credit (no deduction) for contributions to certain organizations. Credits are allocated on a first come, first served basis as of January 1 and once claimed, there is no more for the year.
The credit is capped at $ 5,000,000 per year for all taxpayers, but there is no cap for every corporate taxpayer that donates to claim a credit. The legislation, House Bill 1613, was passed in the 2019 session and the $ 5,000,000 cap was quickly reached after it was passed for the year 2019.
Palmer Home for Children, headquartered in Columbus, MS, has a Hernando campus. Last year, the first Palmer Home was approved as a qualifying charity.
“This resulted in $ 100,000 in giveaways from business partners,” said Amanda Crawford, senior director of development at Palmer Home. “We anticipate this will continue to grow as more partners realize this opportunity. “
The money received from the loan is used for general operating expenses of Palmer Home.
“The money helps fund the operations of our mission, from buying groceries for the kids to paying the electric bill for the cabins,” Crawford said. “As with other giveaways, each donor has the option of designating their giveaway to support a specific area if they choose to do so.”
The guidelines are available on the Mississippi Department of Revenue (MDoR) website. Information can be found at: https://www.dor.ms.gov/business/eligible-charitable-organizations-childrens-promise-act
Other state nonprofits on the list this year include Baptist Children’s Village, Catholic Charities, Inc., Rescue 100, Sally Kate Winter’s Memorial Children’s Home, and Youth Villages, Inc.
Crawford said Palmer Home recommends taxpayers discuss the credit with their tax professional. The availability of credits is limited, competitive and highly sought after.
“We encourage Mississippi taxpayers to speak to their tax professional or visit the MS Department of Revenue website at dor.ms.gov as soon as possible if they’re interested in this tax-saving opportunity that gives back to children in need, ”Crawford added. “Credit requests open when the clock strikes midnight on January 1, and once the limited number of credits is claimed, they are deleted for the year. “
Private schools, such as Northpoint Christian School in Southaven, are also eligible under the category of educational services esco charities.
Up to $ 8,000,000 of tax credits allocated in a calendar year can be allocated to contributions to ESAs. No more than five percent (5%) of the credits may be allocated for contributions to a single ESCO, resulting in a cap per ESCO of $ 400,000.
According to the Mississippi Department of Revenue, requests must appear on the official form titled Request for Allocation of Business Contributions to Qualifying Charitable Organizations. Taxpayers who donate to qualifying charities certified by the ministry as educational service, skills training, or workforce development charities can receive up to fifty percent of the allowance. total. However, taxpayers who donate to qualifying charities focused on foster care and adoption may receive the full $ 5,000,000. Further information can be found at https://www.dor.ms.gov/Business/Pages/Eligible-CharitableOrganizations.aspx.
MDoR will begin accepting the Commercial Contribution Allocation Request to Eligible Charities for Calendar Year 2020 on Wednesday January 1 at 00:00 CST by email only.
“The ministry will not be responsible for technology issues preventing the delivery of an email. Applications sent by email should be sent to [email protected] The date and time of reception indicated on the Ministry’s electronic mail system will be used as the official time of reception. Since the department is closed on January 1 and has no way of accepting physical applications until January 2, applications by hand delivery or mail will be accepted starting January 2 at 8:00 a.m. CST. Requests received by hand delivery or mail will be stamped as received with the date and time of actual receipt of that request by the Office of Fiscal Policy and Economic Development. All applications, whether by email or physical submission, received before these dates and times will be returned as ineligible for the 2020 allocation, ”according to the MDoR.