With the Children’s Promise Act, Mississippi taxpayers and businesses can support Palmer Home and enjoy tax credits of up to 50% of their donation.
Tax Credits Through the Children’s Promise Act
With the Children’s Promise Act, Mississippi residents and businesses can support nonprofits like Palmer Home for Children and enjoy tax credits of up to 50% of their donation. This tax credit program is available to residents, large corporations, and small business owners alike looking to take advantage of tax credits from the state of Mississippi.
The program is intended to encourage charitable giving throughout Mississippi by providing tax credits for donations made to programs that help benefit children in need. The state’s department of revenue has created guidelines to help ensure that organizations that benefit from these charitable donations are nonprofits that have a demonstrated ability to provide care for children throughout our state.
Palmer Home for Children is honored to be one of the handful of nonprofits recognized as a charitable entity worthy of participating in this program. Through donations received from Mississippi residents and businesses through the Children’s Promise Act, we can continue to provide necessary care to infants, children, teens, and young adults throughout Mississippi through our four core service lines which help connect children and families with educational resources, counseling, housing, and more.
READ MORE: 3 Ways to Support Palmer Home for Children
How to Take Advantage of Tax Credits with Charitable Donations Through The Children’s Promise Act
Donations made to eligible charitable organizations (defined as ECOs per the Mississippi Department of Revenue) like Palmer Home for Children may qualify you or your business for a tax credit from the State of Mississippi.
Each calendar year, up to $5,000,000 in tax credits are allotted to donors who have given to an eligible charitable organization. The program began in 2019 and will extend to 2025. Donors must submit an application each fiscal year for their contribution to be considered eligible for tax credits.
How do I donate to Palmer Home and receive tax credits through the Children’s Promise Act?
In order to ensure your gift to Palmer Home for Children is eligible for a tax credit, you must apply for certification of the credit amount by submitting a form to the Mississippi Department of Revenue. Your gift will be certified within 30 business days based on the funds available in the tax credit fund. You will submit your certification with your state tax return to receive your credit.
- Step 1: Complete the MSDOR application for tax credit allocation. Within 30 days of receipt, MSDOR shall send notification of allocation.
- Step 2: Make a donation to Palmer Home at www.palmerhome.org/donate to reduce up to 50% of your Mississippi tax liability to help hope grow.
- Step 3: Send verification of the contribution to the Mississippi Department of Revenue. Verification must be received within 60 days of receipt of notification of allocation.
Note: Funds are only available for a limited time. Make your donation as soon as possible after midnight on December 31, 2022 to take advantage of tax credits through the state of Mississippi and the Children’s Promise Act.
Who is eligible to receive the Children’s Promise Act Tax Credit?
A tax credit is available for voluntary cash contributions 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, partnership, or sole proprietorship.
Are there stipulations on how the tax credit can be used?
The credit is allowed against income tax, insurance premium tax, and insurance premium retaliatory tax. A contribution to an eligible charitable organization used for the Eligible Charitable Business Contribution Tax Credit cannot be used for the Charitable Business Contribution Tax Credit or Foster Care Charitable Tax Credit.