Taxation; bring forward section of law authorizing certain tax credits for contributions to certain eligible charitable organizations.
Impact
The potential impact of HB1192 revolves around fostering a stronger partnership between the state and charitable entities involved in child welfare and education. By incentivizing monetary contributions to recognized organizations, it could produce a significant boost for programs working towards the prevention of child custody and supporting children with special needs. The legislation aims to ensure that up to 50% of the total tax liability could be offset as taxable income through these charitable donations, allowing businesses to contribute meaningfully to community welfare while also benefiting from tax relief.
Summary
House Bill 1192 aims to enhance the existing tax credit framework in Mississippi under Section 27-7-22.41 of the Mississippi Code of 1972. The bill brings forward provisions that allow for income tax credits, insurance premium tax credits, and ad valorem tax credits, specifically for contributions made by taxpayers to eligible charitable organizations. The eligibility for these credits is limited to businesses operating as corporations, limited liability companies, partnerships, or sole proprietorships. Contributions can be directed towards organizations that fulfill critical roles in child protection services and educational support for vulnerable populations.
Contention
Notable points of contention surrounding this bill may arise regarding the criteria for 'eligible charitable organizations.' The bill explicitly states that organizations must not provide or fund abortions, which could spark debate among different stakeholders within the community and the legislature. Furthermore, the limitation on the percentage of tax credits allocated to a single organization could create friction among larger charities that may rely heavily on consistent funding. The structured implementation of these credit allocations will need thorough evaluation to balance support across various causes effectively.