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PRCO

Credits Available for Contributions to Pregnancy Resource Charitable Organizations (PRCO)

​​A tax credit is available for voluntary cash contributions to pregnancy resource charitable organizations (PRCO). Mississippi Code Annotated: § 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 that maintain a physical office, clinic, or maternity home in this state and exclusively offer services or direct financial assistance, with the express purposes of providing assistance to carry a pregnancy to term or to encourage parenting, marriage, or adoption as an alternative to abortion. 

Who can Apply for an Allocation of Credit:  Individual and 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

To qualify as a PRCO, the organization must submit a letter ruling request to the Mississippi Department of Revenue including the following:

  1. Contact information including phone number, email address, mailing address, and physical address, if different from mailing address.
  2. A copy of the exemption letter from the IRS verifying that the organization qualifies under Section 501(c)(3) of the Internal Revenue Code.
  3. A certification that the organization has annually filed the publicly available IRS filings with the Secretary of State.
  4. Proof that the organization maintains a physical office, clinic, or maternity home and that an employee is regularly available to answer the phone during business hours. In addition to a utility and phone bill issued in the organization’s name, documentation may also include a lease agreement or mortgage statement.
  5. A description of the services or direct financial assistance offered.
  6. A statement, signed by an officer of the organization under penalty of perjury, stating that:
    1. No more than 20% of the contributions received from the tax credit will be spent on administrative purposes,
    2. The organization does not provide, pay for, prescribe, distribute, refer for, promote, facilitate, or provide coverage of any abortion as defined by Section 41-41-45(1) or any abortion-inducing drug as defined by Section 41-41-105, and does not financially support or affiliate with any other entity that provides, pays for, prescribes, distributes, refers for, promotes, or provides coverage of any abortion,
    3. The organization does not receive more than 50% of its total annual revenue from a federal, state, or local governmental agency, either directly or as a contractor of such an agency,
    4. The organization does not receive funding under 42 USC Section 300 et seq., or 42 USC Sections 701 through 709, and 711 through 713,
    5. The organization serves clients who are full-time or part-time residents of this state, and
    6. 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.

 

How To Apply for Credits for Contributions to PRCOs

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.

Application for Allocations

Information related to claiming the credit, once approved, will be provided in the approval letter.