Tax Credits; authorize for business contributions to certain organization supporting food pantries or soup kitchens.
Impact
The impact of HB 1015 on state laws lies in its facilitation of charitable contributions from businesses while establishing a framework for tax credits. Eligible businesses will be able to claim a tax credit of up to fifty percent of their total tax liability for contributions made to organizations that meet the defined criteria. This provision encourages a culture of giving among businesses, potentially leading to increased support for food assistance programs. Additionally, it limits the amount of tax credits that can be allocated in a calendar year to $3.5 million, creating an upper limit to the financial impact of the bill on state revenue.
Summary
House Bill 1015 enables specific business enterprises in Mississippi to receive tax credits for voluntary cash contributions made to eligible tax-exempt organizations that assist in purchasing, warehousing, and delivering food directly to food pantries or soup kitchens across more than five counties on a monthly basis. The bill aims to incentivize donations aimed at addressing food insecurity while also providing financial relief to businesses that contribute. This tax credit can be applied against various types of taxes, including income, insurance premium, and ad valorem taxes.
Contention
Notable concerns surrounding HB 1015 include the limitations imposed on eligible organizations, which must adhere to strict criteria to qualify for the tax credit. Critics may argue that this could restrict the sources of food assistance and create barriers for smaller organizations that provide essential services. Furthermore, the provision that contributions cannot be deducted from state income taxes may raise issues among businesses considering their financial incentives for participation. The debate over how effectively this law addresses food insecurity and the actual benefits for businesses is likely to be part of the legislative discussion as the bill moves forward.