A tax credit is available for voluntary cash contributions made to eligible charitable food bank organizations (FBCO) on or after July 1, 2023. Miss. Code Ann. § 27-7-22.46. Please see the information below related to which organizations can qualify and how credits are allocated to each taxpayer.
Information for FBCO Credits
Total Maximum Allocation: $1,000,000
Limits on Total Allocations per FBCO: N/A
Who can Qualify as an FBCO: Organizations that are exempt from federal taxation under Section 501(c)(3) of the Internal Revenue Code and who purchase, warehouse, and deliver food directly to food pantries or soup kitchens in more than five (5) Mississippi counties on a monthly basis
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 Food Bank Charitable Organization
- Steps to Qualify with the Department
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To qualify as an FBCO, 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 list, including address and delivery schedule, of all Mississippi food pantries and soup kitchens that the organization delivers food to monthly.
- A statement that all contributions received from the tax credit will be used for the sole purpose of purchasing food to be delivered to food pantries and soup kitchens in the state of Mississippi.
- A statement, signed by an officer of the organization under penalty of perjury, that the organization meets all criteria to be considered an FBCO.
A letter acknowledging the approval or denial of the organization as an FBCO will be issued.
- Listing of Currently Qualified FBCOs
How To Apply for Credits for Contributions to FBCOs
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.