Credits Available for Contributions to Eligible Hospitals
A tax credit is available for voluntary cash contributions to eligible hospitals (“EHSP”). Senate Bill 3110, 2026 Legislative Session. Please see the information below related to which hospitals can qualify and how credits are allocated to each taxpayer.
Information for EHSP Credits
Total Maximum Allocation: $1,000,000
Limits on Total Allocations per EHSP: $100,000
Who can Qualify as an EHSP: A general acute-care hospital or rural emergency hospital that has forty-nine (49) or fewer licensed inpatient beds. The hospital must provide emergency services twenty-four (24) hours a day for each day of the week.
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: Contributions 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 Hospital
To qualify as an EHSP, the hospital 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 hospital’s license issued by the Mississippi State Department of Health.
- Proof that the hospital has engaged a healthcare consulting firm to develop a strategic plan that will be updated annually or that the hospital has developed a strategic plan from nationally accepted best practices for small or rural hospitals.
- Proof that the hospital has engaged a Certified Public Accountant firm with expertise in healthcare and hospital reimbursement and cost reporting to provide ongoing assistance.
- A statement, signed by an officer of the hospital under penalty of perjury, that the hospital meets all criteria to be considered an EHSP.
A letter acknowledging the approval or denial of the hospital as an EHSP will be issued.
How To Apply for Credits for Contributions to EHSP
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.
Information related to claiming the credit, once approved, will be provided in the approval letter.