A tax credit is available for voluntary cash contributions to pregnancy resource charitable organizations (PRCO). Miss. Code Ann. § 27-7-22.43. Please see the information below related to which organizations can qualify and how credits are allocated to each taxpayer.
Information for PRCO Credits
Total Maximum Allocation: $10,000,000
Limits on Total Allocations per PRCO: 25% of the maximum allocation ($2,500,000), until June 1st
Who can Qualify as a PRCO: Organizations that are exempt from federal taxation under Section 501(c)(3) of the Internal Revenue Code and are a pregnancy resource center or crisis pregnancy center
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 a Pregnancy Resource Charitable Organization
- Steps to Qualify with the Department
To qualify as a PRCO, 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 statement that no more than 20% of the contributions received from the tax credit will be spent on administrative purposes.
- A certification that the organization has annually filed the publicly available IRS filings with the Secretary of State.
- 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 a PRCO.
A letter acknowledging the approval or denial of the organization as a PRCO will be issued.
- Listing of Currently Qualified PRCOs
How To Apply for Credits for Contributions to PRCOs
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.
- 2022 Application for Allocations to Pregnancy Resource Charitable Organizations
- 2023 Application for Allocations to Pregnancy Resource Charitable Organizations
Information related to claiming the credit, once approved, will be provided in the approval letter.