Mississippi allows tax credits for donations to eligible pregnancy centers

Individuals and businesses can apply to the Mississippi Department of Revenue for tax credits for cash donations to approved pregnancy centers. The credit covers voluntary cash donations to approved pregnancy resource centers or crisis pregnancy centers. Credits can reduce state income taxes, other state taxes listed in the law, and real estate taxes. Annual use cannot exceed 50% of covered state taxes owed or 50% of real estate taxes owed. Unused credits can carry forward for five consecutive years after the tax year when they were earned. Donations claimed for a credit cannot also be deducted from state taxable income. The statewide annual allocation limit is $10 million. No more than 25% of credits may go toward donations to one center, except for credits still unallocated before June 1. The Department of Revenue must allocate credits or notify applicants of any reduced allocation within 30 days after receiving an application. Credits depend on room under the annual cap and documented donations. The law applies from January 1, 2026, including eligibility for nonbusiness taxpayers. A donation not yet made when credits are allocated must be made within 60 days of allocation, or the allocation is canceled.

Pregnancy centers seeking approval must meet eligibility rules and have an officer certify compliance to the Mississippi Department of Revenue under penalty of perjury. Centers must be federally tax-exempt charities with a Mississippi office, clinic, or maternity home. They must regularly answer a dedicated phone line and serve full-time or part-time Mississippi residents. Centers must spend no more than 20% of donations received under this program on administration and file their public Internal Revenue Service filings annually with the Secretary of State. Services or direct financial aid must exclusively help people carry pregnancies to term or encourage parenting, marriage, or adoption as alternatives to abortion. To qualify, centers cannot refer for or facilitate abortion or abortion-inducing drugs. They must certify that they do not provide, pay for, prescribe, distribute, refer for, promote, or cover either. Centers must certify that they do not fund or affiliate with entities involved in the listed abortion activities. They must receive no more than 50% of annual revenue from government agencies, including through contracts, and no funding under 42 USC Section 300 et seq. or Sections 701–709 and 711–713. The law applies from January 1, 2026. Centers must report changes affecting eligibility, and the Department of Revenue may request renewed certification.