A tax credit is available for voluntary cash contributions to eligible health care organizations (EHCO). Miss. Code Ann. § 27-7-22.48. This credit is available to both Individual and Business taxpayers. Please see the information related to each credit type below.
Information for EHCO Credits - Individual
Total Maximum Allocation: $1,000,000
Limits on Total Allocations per EHCO (Individual Contributions): N/A
Who can Qualify as an EHCO: An organization that spends at least fifty percent (50%) of its budget on contracting or making other agreements or arrangements with physician and/or nurse practitioners to provide health care services to low-income residents of this state, including those who are mothers and to their households
Who can Apply for an Allocation of Credit: Individual Taxpayers
Tax-Types that Credit can be used against: Income Tax (50% of tax liability), Ad Valorem Tax (50% of real property tax liability)
Carry Forward: 5 years
Other Limitations: Contribution cannot be used for other state charitable credits and cannot be used as a deduction for state income tax purposes
Information for EHCO Credits - Businesses
Total Maximum Allocation: $3,000,000
Limits on Total Allocations per EHCO (Business Contributions): N/A
Who can Qualify as an EHCO: An organization that spends at least fifty percent (50%) of its budget on contracting or making other agreements or arrangements with physician and/or nurse practitioners to provide health care services to low-income residents of this state, including those who are mothers and to their households
Who can Apply for an Allocation of Credit: Business Taxpayers (Corporations, Partnerships, Limited Liability Companies, and Sole Proprietorships)
Tax-Types that Credit can be used against: Income Tax (50% of tax liability), Insurance Premium Tax (50% of tax liability), Insurance Premium Retaliatory Tax (50% of tax liability), Ad Valorem Tax (50% of real property tax liability)
Carry Forward: 5 years
Other Limitations: Contribution cannot be used for other state charitable credits and cannot be used as a deduction for state income tax purposes
How To Qualify as an Eligible Health Care Organization
- Steps to Qualify with the Department
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To qualify as an EHCO, the organization must submit a letter ruling request to the Mississippi Department of Revenue, including the following:
- Contact information including phone number, email address, mailing address, and physical address, if different from mailing address.
- A copy of the exemption letter from the IRS verifying that the organization qualifies under Section 501(c)(3) of the Internal Revenue Code.
- A copy of the prior year's financial statements and/or income tax return.
- A statement that the organization spends 50% of its budget on contracting or making other agreements or arrangements with physicians and/or nurse practitioners to provide health care services to low-income residents of this state including those who are mothers and to their households.
- A statement that the organization does not provide, pay for, or provide coverage of abortions and does not financially support any other entity that provides, pays for, or provides coverage of abortions.
- A statement, signed by an officer of the organization under penalty of perjury, that the organization meets all criteria to be considered an EHCO.
A letter acknowledging the approval or denial of the organization as an EHCO will be issued.
- Listing of Currently Qualified EHCOs
How To Apply for Credits for Individual and Business Contributions to EHCOs
Individuals and 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. A letter response to the application will be sent within 30 days after receipt.
- 2024 Application for Allocations
- Applications must be submitted online. You can access the application by clicking the “Apply for a Charitable Contribution Credit” link under the Apply Online section.
- For calendar year 2024, the Department will begin accepting applications online on Tuesday, January 2, 2024, at 8:00 am central standard time.
Information related to claiming the credit, once approved, will be provided in the approval letter.