Overview
History
The Children’s Promise Act is legislation passed during the 2018 session allowing businesses to receive a dollar-for-dollar tax credit for up to 50% of their state tax liability by making a voluntary cash contribution to an approved nonprofit entity. The nonprofit entities who qualified during this first year were a very narrow portion of the nonprofit sector. In 2019, the scope of approved nonprofits was widened to allow educational institutions to apply; Calhoun Education Foundation dab Calhoun Academy, is now approved to receive contributions through the Children’s Promise Act as a Qualified Charitable Organization.
Please review the section below to learn more about taking advantage of this program.
*Information provided on this page is not tax advice. Please consult a tax professional regarding your specific tax situation.
How it Works
An income tax credit is available to any business who commits to a voluntary cash contribution of up to 50% of their state tax liability to an eligible charitable organization. The tax credit is only available to a taxpayer who is a business enterprise engaged in commercial, industrial or professional activities and operating as a corporation, limited liability company, a partnership, or sole proprietorship. The credit is allowed against income tax, insurance premium tax, and insurance premium retaliatory tax. A contribution, for which an Eligible Charitable Business Contribution Tax Credit is claimed, may not be used as a deduction by the taxpayer for state income tax purposes.
Business taxpayers may donate and receive a dollar-for-dollar tax credit for up to 50% of a taxpayer’s Mississippi State tax liability. For pass-through entities, each partner, member or shareholder may offset up to 50% of his/her individual Mississippi tax liability if the credit is sufficient.
You may only claim a tax credit for your charitable contribution to your Mississippi state tax return. You cannot claim both a deduction and a credit for the same charitable contribution to your Mississippi tax return. Charitable Tax Credit dollars may be carried forward for up to five years, reducing future tax liability.
Steps to Participate
- The taxpayer must submit a request for approval for the tax credit from the Department of Revenue using the link below. The taxpayer must indicate the dollar amount of the contribution made or to be made to the approved nonprofit (Calhoun Education Foundation).
- Within thirty (30) days of receiving the form, the Mississippi Department of Revenue shall respond with an approval or denial.
- If the Mississippi Department of Revenue approves an application, the taxpayer must make the contribution and send the verification of the contribution to the Mississippi Department of Revenue within sixty (60) days from the date the approval was granted.
- If the contribution is not made within sixty (60) days, the tax credit allocation will be canceled by the Mississippi Department of Revenue and those funds will be available for other applicants to utilize.
- If you would like more information or assistance in applying, please contact Donald Pendergrast at 662-412-2084 or dpendergrast@calhounacademycougars.org.
MS Department of Revenue
Click here to view our eligibility and/or apply for the Child Promise Act!