Taxation; extend repealer on income and ad valorem tax credits for certain contributions to charitable and foster care organizations.
The bill primarily impacts the tax landscape by allowing taxpayers to claim credits against both income tax and ad valorem taxes based on their contributions to qualifying organizations. For contributions to qualifying charitable organizations, the credits vary by the filing status of the taxpayer, with higher limits set for contributions made from 2023 onward. Additionally, the bill emphasizes that these organizations must allocate a significant portion of their budgets to serve local residents, particularly those who are low-income or in foster care. This ensures that the intended beneficiaries of the donations are primarily Mississippi residents.
House Bill 749 is a legislative measure aimed at amending Section 27-7-22.39 of the Mississippi Code of 1972, regarding tax credits for voluntary cash contributions made by taxpayers to certain qualifying charitable organizations and foster care charitable organizations. This bill extends the repeal date of the existing statutory provisions that authorize these tax credits, ensuring that they remain in effect beyond their previously established expiration date.
One notable aspect of HB749 is its stipulation that qualifying organizations may not provide, support, or fund abortions. This provision ties into broader debates surrounding women's health issues and the role of charitable organizations in related matters. Critics of such provisions may argue that it limits the scope of charitable activities and how funds can be utilized, potentially affecting the operational effectiveness of these organizations.
HB749 has established specific oversight mechanisms, requiring charities to verify their status and budgetary allocations to maintain qualification for tax credits. The aggregate amount of tax credits awarded under this section is limited to a total of three million dollars per year, which may lead to competition among organizations for funding. These frameworks are designed to enhance accountability but could also complicate the application process for smaller charities.