A tax credit is available for voluntary cash contributions to eligible transitional home organizations (ETHO). Miss. Code Ann. § 27-7-22.47. This credit is available to both Individual and Business taxpayers. Please see the information related to each credit type below.
Information for ETHO Credits - Individual
Total Maximum Allocation: $1,000,000
Limits on Total Allocations per ETHO (Individual Contributions): N/A
Who can Qualify as an ETHO: Organizations that provide temporary transitional housing to homeless persons aged twenty-five (25) and under, homeless families, and/or homeless and/or referred unwed pregnant women with temporary shelter and facilitate their movement to permanent housing within an amount of time determined by the ETHO.
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 ETHO Credits - Businesses
Total Maximum Allocation: $10,000,000
Limits on Total Allocations per ETHO (Business Contributions): 25% of the maximum allocation ($2,500,000)
Who can Qualify as an ETHO: Organizations that provide temporary transitional housing to homeless persons aged twenty-five (25) and under, homeless families, and/or homeless and/or referred unwed pregnant women with temporary shelter and facilitate their movement to permanent housing within an amount of time determined by the ETHO.
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 Transitional Home Organization
- Steps to Qualify with the Department
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To qualify as an ETHO, 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.
- Information about the facilities that demonstrates the applicant’s ability to provide housing for homeless persons aged twenty-five (25) and under, homeless families, and/or homeless and/or referred unwed pregnant women. This includes but is not limited to the address, proof of utilities paid for the residence(s), and a listing of appliances included in the residence(s).
- Sufficient materials to document that the applicant has and runs a program that offers structure, supervision, support, life skills, education and training for each individual and/or family to achieve and/or maintain independence.
- A statement that the organization does not charge a fee for services or benefits provided in whole or in part by its transitional housing program.
- 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 ETHO.
A letter acknowledging the approval or denial of the organization as an ETHO will be issued.
- Listing of Currently Qualified ETHOs
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Listing of Qualified Eligible Transitional Home Organizations
How To Apply for Credits for Individual or Business Contributions to ETHOs
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.
- 2023 Application for Allocations to Eligible Transitional Home Organizations (Business Enterprises)
- 2023 Application for Allocations to Eligible Transitional Home Organizations (Individuals)
Information related to claiming the credit, once approved, will be provided in the approval letter.