Pregnancy Resource Act; revise tax credits authorized for contributions to certain charitable organizations., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Finance

By: Senator(s) Harkins, England, Hill

Senate Bill 3124

(As Sent to Governor)

AN ACT TO AMEND SECTION 27-7-22.43, MISSISSIPPI CODE OF
1972, TO REVISE THE DEFINITION OF "ELIGIBLE CHARITABLE ORGANIZATION"
UNDER THE PREGNANCY RESOURCE ACT; TO MAKE THE STATE INCOME TAX CREDIT UNDER THE
ACT AVAILABLE TO TAXPAYERS THAT ARE NOT BUSINESS ENTERPRISES; TO REVISE THE
REQUIREMENTS OF AN ELIGIBLE CHARITABLE ORGANIZATION'S WRITTEN CERTIFICATION;
AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1.  Section
27-7-22.43, Mississippi Code of 1972, is amended as follows:

27-7-22.43.  (1)  This
section shall be known and may be cited as the "Pregnancy Resource Act."

(2)  For the purposes of
this section, the following words and phrases shall have the meanings ascribed
in this section unless the context clearly indicates otherwise:

(a)  "Department"
means the Department of Revenue.

(b)  "Eligible
charitable organization" means an organization that is exempt from federal
income taxation under Section 501(c)(3) of the Internal Revenue Code and is a pregnancy resource center or crisis pregnancy center.
To be considered an "eligible charitable organization" a pregnancy
resource center or crisis pregnancy center must meet the following criteria:

(i)
Certify that no more than twenty percent (20%) of the contributions received
under this section will be spent on administrative purposes;

(ii)
File annually with the Secretary of State the organization's publicly available
Internal Revenue Service filings * * *.;

(iii)
Maintain in this state a physical office, clinic, or maternity home and
regularly answer a dedicated phone line;

(iv)
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; and

(v)
Not make referrals or facilitate in any way any abortion as defined by Section
41-41-45(1) or refer for or facilitate use of any abortion inducing drug as
defined by Section 41-41-105.

(3)  (a)  For calendar
years through 2025, the tax credit authorized in this section shall be
available only 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;
thereafter, the tax credit authorized in this section shall also be available
to taxpayers that are not business enterprises.  Except as otherwise
provided in this section, a credit is allowed against the taxes imposed by
Sections 27-7-5, 27-15-103, 27-15-109 and 27-15-123, for voluntary cash
contributions made by a taxpayer during the taxable year to an eligible
charitable organization.  For calendar year 2022, for a taxpayer that is not
operating as a corporation, a credit is also allowed against ad valorem taxes
assessed and levied on real property for voluntary cash contributions made by
the taxpayer during the taxable year to an eligible charitable organization.
From and after January 1, 2023, a credit is also allowed against ad valorem
taxes assessed and levied on real property for voluntary cash contributions
made by a taxpayer during the taxable year to an eligible charitable
organization.  The amount of credit that may be utilized by a taxpayer in a taxable
year shall be limited to (i) an amount not to exceed fifty percent (50%) of the
total tax liability of the taxpayer for the taxes imposed by such sections of
law and (ii) an amount not to exceed fifty percent (50%) of the total tax
liability of the taxpayer for ad valorem taxes assessed and levied on real
property.  Any tax credit claimed under this section but not used in any
taxable year may be carried forward for five (5) consecutive years from the
close of the tax year in which the credits were earned.

(b)  A contribution for
which a credit is claimed under this section may not be used as a deduction by
the taxpayer for state income tax purposes.

(4)  Taxpayers taking a
credit authorized by this section shall provide the name of the eligible charitable
organization and the amount of the contribution to the department on forms
provided by the department.

(5)  An eligible charitable
organization shall provide the department with a written certification that it
meets all criteria to be considered an eligible charitable organization.  The
organization shall also notify the department of any changes that may affect
eligibility under this section.

(6)  The eligible charitable
organization's written certification must be signed by an officer of the organization
under penalty of perjury.  The written certification shall include the
following:

(a)  Verification of
the organization's status under Section 501(c)(3) of the Internal Revenue Code;

(b)  A statement that
the organization does not provide, pay for, prescribe, distribute, refer
for, promote or provide coverage of * * * abortions 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 * * *
abortions any abortion;

(c)  A statement
that the organization:

(i)  Does not
receive more than fifty percent (50%) of its total annual revenue from a
federal, state, or local governmental agency, either directly or as a
contractor of such an agency, and does not receive funding under 42 USC Section
300 et seq., or 42 USC Sections 701 through 709, and 711 through 713; and

(ii)  Serves clients
who are full-time or part-time residents of this state; and

( * * *cd)  Any other information that the
department requires to administer this section.

(7)  The department shall
review each written certification and determine whether the organization meets
all the criteria to be considered an eligible charitable organization and
notify the organization of its determination.  The department may also
periodically request recertification from the organization.  The department
shall compile and make available to the public a list of eligible charitable
organizations.

(8)  Tax
credits authorized by this section that are earned by a partnership, limited
liability company, S corporation or other similar pass-through entity, shall be
allocated among all partners, members or shareholders, respectively, either in
proportion to their ownership interest in such entity or as the partners,
members or shareholders mutually agree as provided in an executed document.

(9)
(a)  A taxpayer shall apply for credits with the department on forms prescribed
by the department.  In the application the taxpayer shall certify to the
department the dollar amount of the contributions made or to be made
during the calendar year.  Within thirty (30) days after the receipt of an application,
the department shall allocate credits based on the dollar amount of
contributions as certified in the application.  However, if the department
cannot allocate the full amount of credits certified in the application due to
the limit on the aggregate amount of credits that may be awarded under this
section in a calendar year, the department shall so notify the applicant within
thirty (30) days with the amount of credits, if any, that may be allocated to
the applicant in the calendar year.  Once the department has allocated credits
to a taxpayer, if the contribution for which a credit is allocated has
not been made as of the date of the allocation, then the contribution must be
made not later than sixty (60) days from the date of the allocation.  If the
contribution is not made within such time period, the allocation shall be
cancelled and returned to the department for reallocation.  Upon final
documentation of the contributions, if the actual dollar amount of the
contributions is lower than the amount estimated, the department shall adjust
the tax credit allowed under this section.

(b)
For the purposes of using a tax credit against ad valorem taxes assessed and
levied on real property, a taxpayer shall present to the appropriate tax
collector the tax credit documentation provided to the taxpayer by the
Department of Revenue, and the tax collector shall apply the tax credit against
such ad valorem taxes.  The tax collector shall forward the tax credit
documentation to the Department of Revenue along with the amount of the tax
credit applied against ad valorem taxes, and the department shall disburse
funds to the tax collector for the amount of the tax credit applied against ad
valorem taxes.  Such payments by the Department of Revenue shall be made from
current tax collections.

(10)  The aggregate amount
of tax credits that may be allocated by the department under this section
during a calendar year shall not exceed Three Million Five Hundred Thousand
Dollars ($3,500,000.00).  However, for calendar year 2023, and for each
calendar year thereafter, the aggregate amount of tax credits that may be
allocated by the department under this section during a calendar year shall not
exceed Ten Million Dollars ($10,000,000.00).  For credits allocated
during a calendar year for contributions to eligible charitable organizations,
no more than twenty-five percent (25%) of such credits may be allocated for
contributions to a single eligible charitable organization; however, credits
not allocated before June 1, may be allocated without regard to such
restriction for the same calendar year.

SECTION 2.  This act
shall take effect and be in force from and after January 1, 2026.