Mississippi 2022 Regular Session

Mississippi Senate Bill SB2765

Introduced

1/17/22

Refer

1/17/22

Failed

2/23/22

Caption

Income tax; authorize credits for donations to Habitat for Humanity Mississippi Capital Area.

Impact

The bill represents a direct impact on state tax laws by modifying the tax structure to incentivize charitable donations aimed at community development. By implementing these tax credits, the legislation encourages more individuals and businesses to contribute financially to Habitat for Humanity’s work in the community, which focuses on providing affordable housing solutions. The aggregate limit on the credits awarded sets a cap of $1,000,000 in a calendar year, ensuring that the program remains financially sustainable while also maximizing community benefit.

Summary

Senate Bill 2765 aims to create a new section in the Mississippi Code that authorizes income tax credits for voluntary cash contributions made by individuals and business enterprises to Habitat for Humanity Mississippi Capital Area. This bill allows individuals to claim a tax credit up to $400 for single filers and $800 for married couples filing jointly. Additionally, it specifies that excess amounts of the credit can be carried forward for up to five consecutive years if they exceed the taxpayer's current tax liability.

Contention

Debate surrounding SB2765 is expected to focus on the implications of tax incentives for charitable organizations. Some legislators believe that providing substantial tax credits automatically encourages philanthropy and community support, particularly for organizations like Habitat for Humanity. However, critics may argue that while the bill could help support housing initiatives, it could also divert significant public revenue in the form of tax credits that could have been used for other essential state services. This potential trade-off highlights the ongoing discussion about the best methods to support community initiatives without compromising the state's overall financial health.