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State and Local Tax

Applications for Mississippi Children’s Promise Act and Mississippi Pregnancy Resource Act Credits for Calendar Year 2023

by Ashleigh M. Paige

The Mississippi Department of Revenue has issued a notice regarding the Children’s Promise Act and the Pregnancy Resource Act credits and applications and allocations for upcoming calendar year 2023. Donations must be made to eligible organizations, which are Eligible Charitable Organizations (ECOs) and Educational Services Charitable Organizations (ESCOs) for Children’s Promise Act tax credits. Eligible organizations for the Pregnancy Resource Act tax credits are Pregnancy Resource Charitable Organizations (PRCOs). (Notice 80-22-003, Children’s Promise Act/Pregnancy Resource Act Notice – 2023, Miss. Dept. Rev., 10/26/2022.)

Credit limitations.

Both credits have three different types of caps on the dollar amounts that may be allocated: (1) limited amounts each for ECOs, ESCOs, and PRCOs; (2) limited amounts allocable based on the type of and services offered by each organization; and (3) a cap on an allocation to a single organization. Because of this, the Department expects that the caps will be quickly reached. In order to provide all taxpayers an equal opportunity to obtain allocations of the credits, the Department has published these guidelines on how it will determine who will receive the allocations.

Applications.  

In general: Applications must be made on the official credit forms. The Department advises that there are three different applications for the three types of charitable organizations, and each type of application should only include contributions to that same type of charitable organization. For example, the 2023 Application for Allocations to Eligible Charitable Organizations can only be used for contributions to ECOs, etc., and if an application contains ECO, ESCO, or PRCO contributions entered on the incorrect form, then that single contribution will be removed from consideration for an allocation. Applications must only include one alternative charitable organization for each contribution made. Additional information, including the applications and a listing of all eligible ECOs, ESCOs, and PRCOs, can be found on the Department’s website.

Allocations: Allocations will be made on a first-come, first-served basis, dependent on the time and date the application is received by the Department. Applications will be accepted for the 2023 calendar year beginning Sunday, January 1, 2023 at 12:00 a.m. CST by e-mail. The Department will not be responsible for any technological problems which prevent e-mails from being delivered. The date and time shown as received on the Department’s e-mail system will be used as the official time of receipt. Applications by hand delivery or mail will be accepted beginning January 2, 2023 at 8:00 a.m. CST. Applications received by hand delivery or mail will be stamped as received with the date and time the application was received by the Office of Tax Policy and Economic Development. Any applications, whether through e-mail or physical submission, that are received prior to these dates and times will be returned as ineligible for 2023 allocations.

Submissions can include only one taxpayer’s application. Any e-mail or package that contains applications for more than one taxpayer must designate the order in which the applications are to be considered received. If no such designation is made, the e-mail will be returned so that this designation may be made.

Proration: Allocation prorations will only occur if the caps are reached in a way that the Department cannot determine which applications were received first. For example, if the remaining balance of the credit is requested by mail and multiple separate application packets are received at the same time, those applications will receive a prorated amount. Prorations will be calculated on actual donations made, not based on proposed donations.

 

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