Eligible Charitable Organizations - The Children's Promise Act

A tax credit is available for voluntary cash contributions to an eligible charitable organization (“ECO”). ECOs include educational services charitable organizations (“ESCO”). The amount of the credit is limited to fifty percent (50%) of the taxpayer’s total income tax liability, fifty percent (50%) of the taxpayer’s total insurance premium tax liability and, in the case of taxpayers not operating as a corporation, fifty percent (50%) of the total real property ad valorem tax liability. The tax credit may be carried forward for five (5) years.

Up to $8,000,000 of the tax credits allocated during a calendar year may be allocated for contributions to ECOs that are either licensed by or under contract with the MS Department of Child Protection Services and provide services related to adoption and/or foster care related activities. No more than twenty-five percent (25%) of the credits may be allocated for contributions to a single ECO, resulting in a per ECO cap of $2,000,000.

Up to $8,000,000 of the tax credits allocated during a calendar year may be allocated for contributions to ESCOs. No more than five percent (5%) of the credits may be allocated for contributions to a single ESCO, resulting in a per ESCO cap of $400,000.

Of the $8,000,000 available for ESCOs, $2,000,000 is allotted solely for contributions to Magnolia Speech School and $1,200,000 is allotted solely for contributions to ESCOs that provide services to children who have a chronic illness or physical, intellectual, developmental, or emotional disability. Any contributions included in the $2,000,000 credits not allocated before April 1, 2022, will be made available to all ESCOs. Any contributions included in the $1,200,000 credits not allocated before April 1, 2022, will be made available to ESCOs that provide services to children in a foster care placement program established by the Department of Child Protection Services, children placed under the Safe Families for Children model, or children at significant risk of entering a foster care placement program established by the Department of Child Protection Services.

Businesses must have their contribution(s) certified by completing the appropriate application below and sending it to the Department for review. Instructions are included in the applications

ECOs Eligible for Voluntary Cash Contributions under The Children’s Promise Act:

For more information concerning ECOs and the related income tax credit please see the Technical Bulletin here.​​​​​​

An eligible charitable organization interested in qualifying should submit a letter ruling request. Instructions for submitting a letter ruling request can be found here.

Notices

10/26/21 - Children's Promise Act - 2022 

12/4/20 - Children’s Promise Act Notice – 2021​​​

9/1/20 - Children's Promise Act - Aggregate Limit Reached for 2020 Calendar Year​​

7/24/20 - Children's Promise Act - House Bill 1729

1/2/20 - Children’s ​Promise Act Notice Calendar Year 2020

12/3/19 - Children’s Promise Act Notice

Listing of Allocated Funds

2021

2020

2019​