Mississippi Senate Bill SB2894

Mississippi 2023 Regular Session

• Introduced: 1/25/23
• Refer: 1/25/23
• Failed: 2/22/23

Caption

Children's Promise Act; revise definition of "eligible charitable organization" under.

Impact

The bill establishes a framework for tax credits that businesses can obtain through voluntary contributions to these designated charitable organizations. Specifically, the tax credit would allow up to 50% of the taxpayer’s total tax liability for donations to be applied as a credit against income taxes and ad valorem taxes. This modification not only incentivizes financial support to crucial child welfare services but is also expected to bolster charitable fundraising efforts among Mississippi businesses, ultimately enhancing community support for vulnerable populations.

Summary

Senate Bill 2894, also known as the Children's Promise Act, amends Section 27-7-22.41 of the Mississippi Code to revise the definition of "eligible charitable organization". Under this bill, eligible charitable organizations must be exempt from federal income tax under Section 501(c)(3) of the IRS code and either contracted with the Mississippi Department of Child Protection Services to provide services related to child welfare or certified education service organizations. This aims to ensure that taxpayer contributions are focused on organizations committed to aiding children in need, particularly in foster care systems and educational support programs.

Contention

Discussions around SB2894 may raise questions about the prioritization of funding and the criteria set for eligible organizations, especially concerning the limitations placed on organizations that provide services regarding controversial issues like abortion. Critics may argue that stipulating that funds cannot support entities involved in abortion services could limit the diversity of organizations available to receive these contributions, potentially sidelining groups that serve broader or overlapping functions. Further, the insistence on organizations excluding any form of support for abortion could lead to debates regarding reproductive rights and charity funding ethics.