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To: Ways and Means MISSISSIPPI LEGISLATURE REGULAR SESSION 2023

By: Representatives Gunn, Lamar, Felsher, Williamson, Hopkins, Eubanks, Boyd (19th), Miles

HOUSE BILL NO. 1671 (As Sent to Governor)

AN ACT TO AMEND SECTION 27-7-22.43, MISSISSIPPI CODE OF 1972, 1 WHICH PROVIDES AN INCOME TAX CREDIT, INSURANCE PREMIUM TAX CREDIT 2 AND AD VALOREM TAX CREDIT FOR CONTRIBUTIONS MADE BY CERTAIN 3 TAXPAYERS TO CERTAIN ELIGIBLE CHARITABLE ORGANIZATIONS UNDER THE 4 PREGNANCY RESOURCE ACT, TO REVISE THE DEFINITION OF THE TERM 5 "ELIGIBLE CHARITABLE ORGANIZATION"; TO REVISE CERTAIN PROVISIONS 6 REGARDING THE AMOUNT OF CREDIT THAT MAY BE UTILIZED BY A TAXPAYER 7 DURING A TAXABLE YEAR AND TO INCREASE THE AMOUNT OF CREDITS THAT 8 MAY BE ALLOCATED BY THE DEPARTMENT OF REVENUE UNDER THIS SECTION; 9 TO REVISE THE TAXPAYERS ELIGIBLE FOR AN AD VALOREM TAX CREDIT FOR 10 SUCH CONTRIBUTIONS; TO AMEND SECTION 27-7-22.39, MISSISSIPPI CODE 11 OF 1972, WHICH AUTHORIZES INCOME TAX CREDITS FOR VOLUNTARY CASH 12 CONTRIBUTIONS TO QUALIFYING CHARITABLE ORGANIZATIONS AND 13 QUALIFYING FOSTER CARE CHARITABLE ORGANIZATIONS, TO REVISE THE 14 AMOUNT OF CREDIT THAT A TAXPAYER IS ALLOWED TO CLAIM FOR SUCH A 15 VOLUNTARY CASH CONTRIBUTION; TO AUTHORIZE AN INCOME TAX CREDIT, 16 INSURANCE PREMIUM TAX CREDIT AND AD VALOREM TAX CREDIT FOR 17 VOLUNTARY CASH CONTRIBUTIONS BY TAXPAYERS TO ELIGIBLE TRANSITIONAL 18 HOME ORGANIZATIONS; TO LIMIT THE AMOUNT OF THE TAX CREDIT; TO 19 PROVIDE THAT UNUSED PORTIONS OF A TAX CREDIT MAY BE CARRIED 20 FORWARD FOR FIVE CONSECUTIVE YEARS FROM THE CLOSE OF THE TAX YEAR 21 IN WHICH THE CREDIT WAS EARNED; TO PROVIDE THE CRITERIA THAT AN 22 ELIGIBLE TRANSITIONAL HOME ORGANIZATION MUST MEET IN ORDER FOR A 23 CONTRIBUTION TO THE ORGANIZATION TO QUALIFY FOR A TAX CREDIT 24 AUTHORIZED BY THIS ACT; TO AUTHORIZE AN INCOME TAX CREDIT, 25 INSURANCE PREMIUM TAX CREDIT AND AD VALOREM TAX CREDIT FOR 26 VOLUNTARY CASH CONTRIBUTIONS BY TAXPAYERS TO ELIGIBLE CHARITABLE 27 ORGANIZATIONS; TO LIMIT THE AMOUNT OF THE TAX CREDIT; TO PROVIDE 28 THAT UNUSED PORTIONS OF A TAX CREDIT MAY BE CARRIED FORWARD FOR 29 FIVE CONSECUTIVE YEARS FROM THE CLOSE OF THE TAX YEAR IN WHICH THE 30 CREDIT WAS EARNED; TO PROVIDE THE CRITERIA THAT AN ELIGIBLE 31 CHARITABLE ORGANIZATION MUST MEET IN ORDER FOR A CONTRIBUTION TO 32 THE ORGANIZATION TO QUALIFY FOR A TAX CREDIT AUTHORIZED BY THIS 33 ACT; TO AUTHORIZE AN INCOME TAX CREDIT FOR CERTAIN TAXPAYERS 34

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CLAIMING A FEDERAL INCOME TAX CREDIT FOR CERTAIN DEPENDENT CARE 35 EXPENSES; TO PROVIDE THE AMOUNT OF THE CREDIT; AND FOR RELATED 36 PURPOSES. 37

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 38

SECTION 1. Section 27-7-22.43, Mississippi Code of 1972, is 39 amended as follows: 40

27-7-22.43. (1) This section shall be known and may be 41 cited as the "Pregnancy Resource Act." 42

(2) For the purposes of this section, the following words 43 and phrases shall have the meanings ascribed in this section 44 unless the context clearly indicates otherwise: 45

(a) "Department" means the Department of Revenue. 46

(b) "Eligible charitable organization" means an 47 organization that is exempt from federal income taxation under 48 Section 501(c)(3) of the Internal Revenue Code and is a pregnancy 49 resource center or crisis pregnancy center * * *. To be 50 considered an "eligible charitable organization" a pregnancy 51 resource center or crisis pregnancy center must meet the following 52 criteria: 53

(i) Certify that no more than twenty percent (20%) 54 of the contributions received under this section will be spent on 55 administrative purposes; 56

(ii) File annually with the Secretary of State the 57 organization's publicly available Internal Revenue Service 58 filings. 59

(3) (a) The tax credit authorized in this section shall be 60 available only to a taxpayer who is a business enterprise engaged 61

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in commercial, industrial or professional activities and operating 62 as a corporation, limited liability company, partnership or sole 63 proprietorship. Except as otherwise provided in this section, a 64 credit is allowed against the taxes imposed by Sections 27-7-5, 65 27-15-103, 27-15-109 and 27-15-123, for voluntary cash 66 contributions made by a taxpayer during the taxable year to an 67 eligible charitable organization. For calendar year 2022, for a 68 taxpayer that is not operating as a corporation, a credit is also 69 allowed against ad valorem taxes assessed and levied on real 70 property for voluntary cash contributions made by the taxpayer 71 during the taxable year to an eligible charitable organization. 72 From and after January 1, 2023, a credit is also allowed against 73 ad valorem taxes assessed and levied on real property for 74 voluntary cash contributions made by a taxpayer during the taxable 75 year to an eligible charitable organization. The amount of credit 76 that may be utilized by a taxpayer in a taxable year shall be 77 limited to (i) an amount not to exceed fifty percent (50%) of the 78 total tax liability of the taxpayer for the taxes imposed by such 79 sections of law and (ii) an amount not to exceed fifty percent 80 (50%) of the total tax liability of the taxpayer for ad valorem 81 taxes assessed and levied on real property. Any tax credit 82 claimed under this section but not used in any taxable year may be 83 carried forward for five (5) consecutive years from the close of 84 the tax year in which the credits were earned. 85

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(b) A contribution for which a credit is claimed under 86 this section may not be used as a deduction by the taxpayer for 87 state income tax purposes. 88

(4) Taxpayers taking a credit authorized by this section 89 shall provide the name of the eligible charitable organization and 90 the amount of the contribution to the department on forms provided 91 by the department. 92

(5) An eligible charitable organization shall provide the 93 department with a written certification that it meets all criteria 94 to be considered an eligible charitable organization. The 95 organization shall also notify the department of any changes that 96 may affect eligibility under this section. 97

(6) The eligible charitable organization's written 98 certification must be signed by an officer of the organization 99 under penalty of perjury. The written certification shall include 100 the following: 101

(a) Verification of the organization's status under 102 Section 501(c)(3) of the Internal Revenue Code; 103

(b) A statement that the organization does not provide, 104 pay for or provide coverage of abortions and does not financially 105 support any other entity that provides, pays for or provides 106 coverage of abortions; 107

(c) Any other information that the department requires 108 to administer this section. 109

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(7) The department shall review each written certification 110 and determine whether the organization meets all the criteria to 111 be considered an eligible charitable organization and notify the 112 organization of its determination. The department may also 113 periodically request recertification from the organization. The 114 department shall compile and make available to the public a list 115 of eligible charitable organizations. 116

(8) Tax credits authorized by this section that are earned 117 by a partnership, limited liability company, S corporation or 118 other similar pass-through entity, shall be allocated among all 119 partners, members or shareholders, respectively, either in 120 proportion to their ownership interest in such entity or as the 121 partners, members or shareholders mutually agree as provided in an 122 executed document. 123

(9) (a) A taxpayer shall apply for credits with the 124 department on forms prescribed by the department. In the 125 application the taxpayer shall certify to the department the 126 dollar amount of the contributions made or to be made during the 127 calendar year. Within thirty (30) days after the receipt of an 128 application, the department shall allocate credits based on the 129 dollar amount of contributions as certified in the application. 130 However, if the department cannot allocate the full amount of 131 credits certified in the application due to the limit on the 132 aggregate amount of credits that may be awarded under this section 133 in a calendar year, the department shall so notify the applicant 134

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within thirty (30) days with the amount of credits, if any, that 135 may be allocated to the applicant in the calendar year. Once the 136 department has allocated credits to a taxpayer, if the 137 contribution for which a credit is allocated has not been made as 138 of the date of the allocation, then the contribution must be made 139 not later than sixty (60) days from the date of the allocation. 140 If the contribution is not made within such time period, the 141 allocation shall be cancelled and returned to the department for 142 reallocation. Upon final documentation of the contributions, if 143 the actual dollar amount of the contributions is lower than the 144 amount estimated, the department shall adjust the tax credit 145 allowed under this section. 146

(b) For the purposes of using a tax credit against ad 147 valorem taxes assessed and levied on real property, a taxpayer 148 shall present to the appropriate tax collector the tax credit 149 documentation provided to the taxpayer by the Department of 150 Revenue, and the tax collector shall apply the tax credit against 151 such ad valorem taxes. The tax collector shall forward the tax 152 credit documentation to the Department of Revenue along with the 153 amount of the tax credit applied against ad valorem taxes, and the 154 department shall disburse funds to the tax collector for the 155 amount of the tax credit applied against ad valorem taxes. Such 156 payments by the Department of Revenue shall be made from current 157 tax collections. 158

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(10) The aggregate amount of tax credits that may be 159 allocated by the department under this section during a calendar 160 year shall not exceed Three Million Five Hundred Thousand Dollars 161 ($3,500,000.00). However, for calendar year 2023, and for each 162 calendar year thereafter, the aggregate amount of tax credits that 163 may be allocated by the department under this section during a 164 calendar year shall not exceed Ten Million Dollars 165 ($10,000,000.00). For credits allocated during a calendar year 166 for contributions to eligible charitable organizations, no more 167 than * * * twenty-five percent (25%) of such credits may be 168 allocated for contributions to a single eligible charitable 169 organization; however, credits not allocated before June 1, may be 170 allocated without regard to such restriction for the same calendar 171 year. 172

SECTION 2. Section 27-7-22.39, Mississippi Code of 1972, is 173 amended as follows: 174

27-7-22.39. (1) As used in this section: 175

(a) "Low-income residents" means persons whose 176 household income is less than one hundred fifty percent (150%) of 177 the federal poverty level. 178

(b) "Qualifying charitable organization" means a 179 charitable organization that is exempt from federal income 180 taxation under Section 501(c)(3) of the Internal Revenue Code or 181 is a designated community action agency that receives community 182 services block grant program monies pursuant to 42 USC 9901. The 183

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organization must spend at least fifty percent (50%) of its budget 184 on services to residents of this state who receive temporary 185 assistance for needy families benefits or low-income residents of 186 this state and their households or to children who have a chronic 187 illness or physical, intellectual, developmental or emotional 188 disability who are residents of this state. A charitable 189 organization that is exempt from federal income tax under Section 190 501(c)(3) of the Internal Revenue Code and that meets all other 191 requirements of this paragraph except that it does not spend at 192 least fifty percent (50%) of its overall budget in Mississippi may 193 be a qualifying charitable organization if it spends at least 194 fifty percent (50%) of its Mississippi budget on services to 195 qualified individuals in Mississippi and it certifies to the 196 department that one hundred percent (100%) of the voluntary cash 197 contributions from the taxpayer will be spent on services to 198 qualified individuals in Mississippi. Taxpayers choosing to make 199 donations through an umbrella charitable organization that 200 collects donations on behalf of member charities shall designate 201 that the donation be directed to a member charitable organization 202 that would qualify under this section on a stand-alone basis. 203 Qualifying charitable organization does not include any entity 204 that provides, pays for or provides coverage of abortions or that 205 financially supports any other entity that provides, pays for or 206 provides coverage of abortions. 207

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(c) "Qualifying foster care charitable organization" 208 means a qualifying charitable organization that each operating 209 year provides services to at least one hundred (100) qualified 210 individuals in this state and spends at least fifty percent (50%) 211 of its budget on services to qualified individuals in this state. 212 A charitable organization that is exempt from federal income tax 213 under Section 501(c)(3) of the Internal Revenue Code and that 214 meets all other requirements of this paragraph except that it does 215 not spend at least fifty percent (50%) of its overall budget in 216 Mississippi may be a qualifying foster care charitable 217 organization if it spends at least fifty percent (50%) of its 218 Mississippi budget on services to qualified individuals in 219 Mississippi and it certifies to the department that one hundred 220 percent (100%) of the voluntary cash contributions from the 221 taxpayer will be spent on services to qualified individuals in 222 Mississippi. For the purposes of this paragraph, "qualified 223 individual" means a child in a foster care placement program 224 established by the Department of Child Protection Services, a 225 child placed under the Safe Families for Children model, or a 226 child at significant risk of entering a foster care placement 227 program established by the Department of Child Protection 228 Services. 229

(d) "Services" means: 230

(i) Cash assistance, medical care, child care, 231 food, clothing, shelter, and job-placement services or any other 232

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assistance that is reasonably necessary to meet immediate basic 233 needs and that is provided and used in this state; 234

(ii) Job-training or education services or funding 235 for parents, foster parents or guardians; or

(iii) 236 Job-training or education services or funding provided as part of 237 a foster care independent living program. 238

(2) (a) Except as provided in subsections (3) and (4) of 239 this section, a credit is allowed against the taxes imposed by 240 this chapter for voluntary cash contributions by the taxpayer 241 during the taxable year to a qualifying charitable organization, 242 other than a qualifying foster care charitable organization, not 243 to exceed: 244

( * * *i) Through calendar year 2022, the lesser of 245 Four Hundred Dollars ($400.00) or the amount of the contribution 246 in any taxable year for a single individual or a head of 247 household; and for calendar year 2023 and each calendar year 248 thereafter, the lesser of One Thousand Two Hundred Dollars 249 ($1,200.00) or the amount of the contribution in any taxable year 250 for a single individual or a head of household. 251

( * * *ii) Through calendar year 2022, the lesser of 252 Eight Hundred Dollars ($800.00) or the amount of the contribution 253 in any taxable year for a married couple filing a joint return; 254 and for calendar year 2023 and each calendar year thereafter, the 255 lesser of Two Thousand Four Hundred Dollars ($2,400.00) or the 256

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amount of the contribution in any taxable year for a married 257 couple filing a joint return. 258

(b) From and after January 1, 2023, a credit is also 259 allowed against ad valorem taxes assessed and levied on real 260 property for voluntary cash contributions made by the individual 261 taxpayer during the taxable year to a qualifying charitable 262 organization, other than a qualifying foster care charitable 263 organization. The amount of credit that may be utilized by a 264 taxpayer in a taxable year shall be limited to an amount not to 265 exceed fifty percent (50%) of the total tax liability of the 266 taxpayer for ad valorem taxes assessed and levied on real 267 property. Any tax credit claimed under this paragraph but not 268 used in any taxable year may be carried forward for five (5) 269 consecutive years from the close of the tax year in which the 270 credits were earned. 271

(3) (a) A separate credit is allowed against the taxes 272 imposed by this chapter for voluntary cash contributions during 273 the taxable year to a qualifying foster care charitable 274 organization. A contribution to a qualifying foster care 275 charitable organization does not qualify for, and shall not be 276 included in, any credit amount under subsection (2) of this 277 section. If the voluntary cash contribution by the taxpayer is to 278 a qualifying foster care charitable organization, the credit shall 279 not exceed: 280

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( * * *i) Through calendar year 2022, the lesser of 281 Five Hundred Dollars ($500.00) or the amount of the contribution 282 in any taxable year for a single individual or a head of 283 household; and for calendar year 2023 and each calendar year 284 thereafter, the lesser of One Thousand Five Hundred Dollars 285 ($1,500.00) or the amount of the contribution in any taxable year 286 for a single individual or a head of household. 287

( * * *ii) Through calendar year 2022, the lesser of 288 One Thousand Dollars ($1,000.00) or the amount of the contribution 289 in any taxable year for a married couple filing a joint return; 290 and for calendar year 2023 and each calendar year thereafter, the 291 lesser of Three Thousand Dollars ($3,000.00) or the amount of the 292 contribution in any taxable year for a married couple filing a 293 joint return. 294

(b) From and after January 1, 2023, a credit is also 295 allowed against ad valorem taxes assessed and levied on real 296 property for voluntary cash contributions made by the individual 297 taxpayer during the taxable year to a qualifying foster care 298 charitable organization. The amount of credit that may be 299 utilized by a taxpayer in a taxable year shall be limited to an 300 amount not to exceed fifty percent (50%) of the total tax 301 liability of the taxpayer for ad valorem taxes assessed and levied 302 on real property. Any tax credit claimed under this paragraph but 303 not used in any taxable year may be carried forward for five (5) 304

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consecutive years from the close of the tax year in which the 305 credits were earned. 306

(4) Subsections (2) and (3) of this section provide separate 307 credits against taxes imposed by this chapter depending on the 308 recipients of the contributions. A taxpayer, including a married 309 couple filing a joint return, in the same taxable year, may either 310 or both: 311

(a) Contribute to a qualifying charitable organization, 312 other than a qualifying foster care charitable organization, and 313 claim a credit under subsection (2) of this section. 314

(b) Contribute to a qualifying foster care charitable 315 organization and claim a credit under subsection (3) of this 316 section. 317

(5) A husband and wife who file separate returns for a 318 taxable year in which they could have filed a joint return may 319 each claim only one-half (1/2) of the tax credit that would have 320 been allowed for a joint return. 321

(6) Except as otherwise provided in subsections (2) and (3) 322 of this section, if the allowable tax credit exceeds the taxes 323 otherwise due under this chapter on the claimant's income, or if 324 there are no taxes due under this chapter, the taxpayer may carry 325 forward the amount of the claim not used to offset the taxes under 326 this chapter for not more than five (5) consecutive taxable years' 327 income tax liability. 328

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(7) The credit allowed by this section is in lieu of a 329 deduction pursuant to Section 170 of the Internal Revenue Code and 330 taken for state tax purposes. 331

(8) Taxpayers taking a credit authorized by this section 332 shall provide the name of the qualifying charitable organization 333 and the amount of the contribution to the department on forms 334 provided by the department. 335

(9) A qualifying charitable organization shall provide the 336 department with a written certification that it meets all criteria 337 to be considered a qualifying charitable organization. The 338 organization shall also notify the department of any changes that 339 may affect the qualifications under this section. 340

(10) The charitable organization's written certification 341 must be signed by an officer of the organization under penalty of 342 perjury. The written certification shall include the following: 343

(a) Verification of the organization's status under 344 Section 501(c)(3) of the Internal Revenue Code or verification 345 that the organization is a designated community action agency that 346 receives community services block grant program monies pursuant to 347 42 USC 9901. 348

(b) Financial data indicating the organization's budget 349 for the organization's prior operating year and the amount of that 350 budget spent on services to residents of this state who either: 351

(i) Receive temporary assistance for needy 352 families benefits; 353

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(ii) Are low-income residents of this state; 354

(iii) Are children who have a chronic illness or 355 physical, intellectual, developmental or emotional disability; or 356

(iv) Are children in a foster care placement 357 program established by the Department of Child Protection 358 Services, children placed under the Safe Families for Children 359 model or children at significant risk of entering a foster care 360 placement program established by the Department of Child 361 Protection Services. 362

(c) A statement that the organization plans to continue 363 spending at least fifty percent (50%) of its budget on services to 364 residents of this state who receive temporary assistance for needy 365 families benefits, who are low-income residents of this state, who 366 are children who have a chronic illness or physical, intellectual, 367 developmental or emotional disability or who are children in a 368 foster care placement program established by the Department of 369 Child Protection Services, children placed under the Safe Families 370 for Children model or children at significant risk of entering a 371 foster care placement program established by the Department of 372 Child Protection Services. A charitable organization that is 373 exempt from federal income tax under Section 501(c)(3) of the 374 Internal Revenue Code and that meets all other requirements for a 375 qualifying charitable organization or qualifying foster care 376 charitable organization except that it does not spend at least 377 fifty percent (50%) of its overall budget in Mississippi shall 378

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submit a statement that it spends at least fifty percent (50%) of 379 its Mississippi budget on services to qualified individuals in 380 Mississippi and that one hundred percent (100%) of the voluntary 381 cash contributions it receives from Mississippi taxpayers will be 382 spent on services to qualified individuals in Mississippi. 383

(d) In the case of a foster care charitable 384 organization, a statement that each operating year it provides 385 services to at least one hundred (100) qualified individuals in 386 this state. 387

(e) A statement that the organization does not provide, 388 pay for or provide coverage of abortions and does not financially 389 support any other entity that provides, pays for or provides 390 coverage of abortions. 391

(f) Any other information that the department requires 392 to administer this section. 393

(11) The department shall review each written certification 394 and determine whether the organization meets all the criteria to 395 be considered a qualifying charitable organization and notify the 396 organization of its determination. The department may also 397 periodically request recertification from the organization. The 398 department shall compile and make available to the public a list 399 of the qualifying charitable organizations. 400

(12) The aggregate amount of tax credits that may be awarded 401 under this section in any calendar year shall not exceed Three 402 Million Dollars ($3,000,000.00). However, for calendar year 2021, 403

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and for each calendar year thereafter, the aggregate amount of tax 404 credits that may be awarded under this section in any calendar 405 year shall not exceed One Million Dollars ($1,000,000.00). In 406 addition, any tax credits not awarded under this section before 407 June 1, 2020, may be allocated during calendar year 2020 under 408 Section 27-7-22.41 for contributions by taxpayers to eligible 409 charitable organizations described in Section 410 27-7-22.41(1)(b)(ii) as provided under such section, 411 notwithstanding any limitation on the percentage of tax credits 412 that may be allocated for such contributions. 413

(13) A taxpayer shall apply for credits with the department 414 on forms prescribed by the department. In the application the 415 taxpayer shall certify to the department the dollar amount of the 416 contributions made or to be made during the calendar year. Within 417 thirty (30) days after the receipt of an application, the 418 department shall allocate credits based on the dollar amount of 419 contributions as certified in the application. However, if the 420 department cannot allocate the full amount of credits certified in 421 the application due to the limit on the aggregate amount of 422 credits that may be awarded under this section in a calendar year, 423 the department shall so notify the applicant within thirty (30) 424 days with the amount of credits, if any, that may be allocated to 425 the applicant in the calendar year. Once the department has 426 allocated credits to a taxpayer, if the contribution for which a 427 credit is allocated has not been made as of the date of the 428

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allocation, then the contribution must be made not later than 429 sixty (60) days from the date of the allocation. If the 430 contribution is not made within such time period, the allocation 431 shall be cancelled and returned to the department for 432 reallocation. Upon final documentation of the contributions, if 433 the actual dollar amount of the contributions is lower than the 434 amount estimated, the department shall adjust the tax credit 435 allowed under this section. 436

(14) This section shall be repealed from and after January 437 1, 2025. 438

SECTION 3. (1) For the purposes of this section, the 439 following words and phrases shall have the meanings ascribed in 440 this section unless the context clearly indicates otherwise: 441

(a) "Department" means the Department of Revenue. 442

(b) "Eligible transitional home organization" means an 443 organization that is exempt from federal income taxation under 444 Section 501(c)(3) of the Internal Revenue Code that provides 445 transitional housing for homeless persons age twenty-five (25) and 446 under, homeless families and/or homeless and/or referred unwed 447 pregnant women. 448

"Eligible transitional home organization" does not include 449 any entity that provides, pays for or provides coverage of 450 abortions or that financially supports any other entity that 451 provides, pays for or provides coverage of abortions. 452

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"Eligible transitional home organization" does not include 453 any entity that charges a fee for the services and/or benefits it 454 provides as an eligible transitional home organization. The 455 prohibition against charging a fee for services and/or benefits is 456 limited to services and benefits the entity provides as an 457 eligible transitional home organization and does not apply to any 458 other services and/or benefits the entity may provide to persons 459 not being served by the entity's transitional home services. 460

(c) "Transitional housing" means temporary housing the 461 purpose of which is to provide homeless persons age twenty-five 462 (25) and under, homeless families and/or homeless and/or referred 463 unwed pregnant women with temporary shelter and facilitate their 464 movement to permanent housing within an amount of time that the 465 eligible transitional home organization determines to be 466 appropriate. 467

"Transitional housing" includes a program designed by the 468 eligible transitional home organization that offers structure, 469 supervision, support, life skills, education and training as the 470 eligible transitional home organization determines to be 471 appropriate for each individual and/or family to achieve and/or 472 maintain independence. 473

(2) (a) (i) The tax credit authorized in this subsection 474 shall be available only to a taxpayer who is a business enterprise 475 engaged in commercial, industrial or professional activities and 476 operating as a corporation, limited liability company, partnership 477

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or sole proprietorship. Except as otherwise provided in this 478 subsection, a credit is allowed against the taxes imposed by 479 Sections 27-7-5, 27-15-103, 27-15-109 and 27-15-123, for voluntary 480 cash contributions made by a taxpayer during the taxable year to 481 an eligible transitional home organization. A credit is also 482 allowed against ad valorem taxes assessed and levied on real 483 property for voluntary cash contributions made by the taxpayer 484 during the taxable year to an eligible transitional home 485 organization. The amount of credit that may be utilized by a 486 taxpayer in a taxable year shall be limited to an amount not to 487 exceed fifty percent (50%) of the total tax liability of the 488 taxpayer for the taxes imposed by such sections of law and an 489 amount not to exceed fifty percent (50%) of the total tax 490 liability of the taxpayer for ad valorem taxes assessed and levied 491 on real property. Any tax credit claimed under this subsection 492 but not used in any taxable year may be carried forward for five 493 (5) consecutive years from the close of the tax year in which the 494 credits were earned. 495

(ii) A contribution to an eligible transitional 496 home organization for which a credit is claimed under this 497 subsection does not qualify for and shall not be included in any 498 credit that may be claimed under subsection (3) of this section. 499

(iii) A contribution for which a credit is claimed 500 under this subsection may not be used as a deduction by the 501 taxpayer for state income tax purposes. 502

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(b) Taxpayers taking a credit authorized by this 503 subsection shall provide the name of the eligible transitional 504 home organization and the amount of the contribution to the 505 department on forms provided by the department. 506

(c) An eligible transitional home organization shall 507 provide the department with a written certification that it meets 508 all criteria to be considered an eligible transitional home 509 organization. The organization shall also notify the department 510 of any changes that may affect eligibility under this section. 511

(d) The eligible transitional home organization's 512 written certification must be signed by an officer of the 513 organization under penalty of perjury. The written certification 514 shall include the following: 515

(i) Verification of the organization's status 516 under Section 501(c)(3) of the Internal Revenue Code; 517

(ii) Information about the facilities that 518 demonstrate the applicant's ability to provide housing for 519 homeless persons age twenty-five (25) and under, homeless 520 families, and/or homeless and/or referred unwed pregnant women; 521

(iii) Sufficient materials to document the program 522 of the applicant that demonstrate that the applicant has and runs 523 a program that offers structure, supervision, support, life 524 skills, education and training as the eligible transitional home 525 organization determines to be appropriate for each individual 526 and/or family to achieve and/or maintain independence; 527

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(iv) A statement that the organization does not 528 charge a fee for services or benefits provided in whole or in part 529 by its transitional housing program; and 530

(v) Any other information that the department 531 requires to administer this section. 532

(e) The department shall review each written 533 certification and determine whether the organization meets all the 534 criteria to be considered an eligible transitional home 535 organization and notify the organization of its determination. 536 The department may also periodically request recertification from 537 the organization. The department shall compile and make available 538 to the public a list of eligible transitional home organizations. 539

(f) Tax credits authorized by this subsection that are 540 earned by a partnership, limited liability company, S corporation 541 or other similar pass-through entity, shall be allocated among all 542 partners, members or shareholders, respectively, either in 543 proportion to their ownership interest in such entity or as the 544 partners, members or shareholders mutually agree as provided in an 545 executed document. 546

(g) (i) A taxpayer shall apply for credits with the 547 department on forms prescribed by the department. In the 548 application the taxpayer shall certify to the department the 549 dollar amount of the contributions made or to be made during the 550 calendar year. Within thirty (30) days after the receipt of an 551 application, the department shall allocate credits based on the 552

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dollar amount of contributions as certified in the application. 553 However, if the department cannot allocate the full amount of 554 credits certified in the application due to the limit on the 555 aggregate amount of credits that may be awarded under this 556 subsection in a calendar year, the department shall so notify the 557 applicant within thirty (30) days with the amount of credits, if 558 any, that may be allocated to the applicant in the calendar year. 559 Once the department has allocated credits to a taxpayer, if the 560 contribution for which a credit is allocated has not been made as 561 of the date of the allocation, then the contribution must be made 562 not later than sixty (60) days from the date of the allocation. 563 If the contribution is not made within such time period, the 564 allocation shall be cancelled and returned to the department for 565 reallocation. Upon final documentation of the contributions, if 566 the actual dollar amount of the contributions is lower than the 567 amount estimated, the department shall adjust the tax credit 568 allowed under this subsection. 569

(ii) For the purposes of using a tax credit 570 against ad valorem taxes assessed and levied on real property, a 571 taxpayer shall present to the appropriate tax collector the tax 572 credit documentation provided to the taxpayer by the Department of 573 Revenue, and the tax collector shall apply the tax credit against 574 such ad valorem taxes. The tax collector shall forward the tax 575 credit documentation to the Department of Revenue along with the 576 amount of the tax credit applied against ad valorem taxes, and the 577

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department shall disburse funds to the tax collector for the 578 amount of the tax credit applied against ad valorem taxes. Such 579 payments by the Department of Revenue shall be made from current 580 tax collections. 581

(h) The aggregate amount of tax credits that may be 582 allocated by the department under this subsection during a 583 calendar year shall not exceed Ten Million Dollars 584 ($10,000,000.00). For credits allocated during a calendar year 585 for contributions to eligible transitional home organizations, no 586 more than twenty-five percent (25%) of such credits may be 587 allocated for contributions to a single eligible transitional home 588 organization. 589

(3) (a) (i) Except as otherwise provided in this 590 subsection, a credit is allowed against the taxes imposed by this 591 chapter for voluntary cash contributions by an individual taxpayer 592 during the taxable year to an eligible transitional home 593 organization. A credit is also allowed against ad valorem taxes 594 assessed and levied on real property for voluntary cash 595 contributions made by an individual taxpayer during the taxable 596 year to an eligible transitional home organization. The amount of 597 credit that may be utilized by a taxpayer in a taxable year shall 598 be limited to an amount not to exceed fifty percent (50%) of the 599 total tax liability of the taxpayer for the taxes imposed by this 600 chapter and an amount not to exceed fifty percent (50%) of the 601 total tax liability of the taxpayer for ad valorem taxes assessed 602

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and levied on real property. Any tax credit claimed under this 603 subsection but not used in any taxable year may be carried forward 604 for five (5) consecutive years from the close of the tax year in 605 which the credits were earned. 606

(ii) A husband and wife who file separate returns 607 for a taxable year in which they could have filed a joint return 608 may each claim only one-half (1/2) of the tax credit that would 609 have been allowed for a joint return. 610

(iii) A contribution to an eligible transitional 611 home organization for which a credit is claimed under this 612 subsection does not qualify for and shall not be included in any 613 credit that may be claimed under subsection (2) of this section. 614

(iv) A contribution for which a credit is claimed 615 under this subsection may not be used as a deduction by the 616 taxpayer for state income tax purposes. 617

(b) Taxpayers taking a credit authorized by this 618 subsection shall provide the name of the eligible transitional 619 home organization and the amount of the contribution to the 620 department on forms provided by the department. 621

(c) An eligible transitional home organization shall 622 provide the department with a written certification that it meets 623 all criteria to be considered an eligible transitional home 624 organization. The organization shall also notify the department 625 of any changes that may affect eligibility under this section. 626

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(d) The eligible transitional housing organization's 627 written certification must be signed by an officer of the 628 organization under penalty of perjury. The written certification 629 shall include the following: 630

(i) Verification of the organization's status 631 under Section 501(c)(3) of the Internal Revenue Code; 632

(ii) Information about the facilities that 633 demonstrate the applicant's ability to provide housing for 634 homeless persons age twenty-five (25) and under, homeless 635 families, and/or homeless and/or referred unwed pregnant women; 636

(iii) Sufficient materials to document the program 637 of the applicant that demonstrate that the applicant has and runs 638 a program that offers structure, supervision, support, life 639 skills, education and training as the eligible transitional home 640 organization determines to be appropriate for each individual 641 and/or family to achieve and/or maintain independence; 642

(iv) A statement that the organization does not 643 charge a fee for services or benefits provided in whole or in part 644 by its transitional housing program; and 645

(v) Any other information that the department 646 requires to administer this section. 647

(e) The department shall review each written 648 certification and determine whether the organization meets all the 649 criteria to be considered an eligible transitional home 650 organization and notify the organization of its determination. 651

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The department may also periodically request recertification from 652 the organization. The department shall compile and make available 653 to the public a list of eligible transitional home organizations. 654

(f) (i) A taxpayer shall apply for credits with the 655 department on forms prescribed by the department. In the 656 application the taxpayer shall certify to the department the 657 dollar amount of the contributions made or to be made during the 658 calendar year. Within thirty (30) days after the receipt of an 659 application, the department shall allocate credits based on the 660 dollar amount of contributions as certified in the application. 661 However, if the department cannot allocate the full amount of 662 credits certified in the application due to the limit on the 663 aggregate amount of credits that may be awarded under this 664 subsection in a calendar year, the department shall so notify the 665 applicant within thirty (30) days with the amount of credits, if 666 any, that may be allocated to the applicant in the calendar year. 667 Once the department has allocated credits to a taxpayer, if the 668 contribution for which a credit is allocated has not been made as 669 of the date of the allocation, then the contribution must be made 670 not later than sixty (60) days from the date of the allocation. 671 If the contribution is not made within such time period, the 672 allocation shall be cancelled and returned to the department for 673 reallocation. Upon final documentation of the contributions, if 674 the actual dollar amount of the contributions is lower than the 675

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amount estimated, the department shall adjust the tax credit 676 allowed under this subsection. 677

(ii) For the purposes of using a tax credit 678 against ad valorem taxes assessed and levied on real property, a 679 taxpayer shall present to the appropriate tax collector the tax 680 credit documentation provided to the taxpayer by the Department of 681 Revenue, and the tax collector shall apply the tax credit against 682 such ad valorem taxes. The tax collector shall forward the tax 683 credit documentation to the Department of Revenue along with the 684 amount of the tax credit applied against ad valorem taxes, and the 685 department shall disburse funds to the tax collector for the 686 amount of the tax credit applied against ad valorem taxes. Such 687 payments by the Department of Revenue shall be made from current 688 tax collections. 689

(g) The aggregate amount of tax credits that may be 690 allocated by the department under this subsection during a 691 calendar year shall not exceed One Million Dollars 692 ($1,000,000.00). 693

SECTION 4. (1) (a) For the purposes of this section, the 694 following words and phrases shall have the meanings ascribed in 695 this section unless the context clearly indicates otherwise: 696

(i) "Department" means the Department of Revenue. 697

(ii) "Eligible charitable organization" means an 698 organization that is exempt from federal income taxation under 699 Section 501(c)(3) of the Internal Revenue Code and spends at least 700

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fifty percent (50%) of its budget on contracting or making other 701 agreements or arrangements with physicians and/or nurse 702 practitioners to provide health care services to low-income 703 residents of this state including those who are mothers and to 704 their households. 705

"Eligible charitable organization" does not include any 706 entity that provides, pays for or provides coverage of abortions 707 or that financially supports any other entity that provides, pays 708 for or provides coverage of abortions. 709

(iii) "Low-income residents" means persons whose 710 household income does not exceed one hundred eighty-five percent 711 (185%) of the federal poverty level converted to a modified 712 adjusted gross income equivalent standard. 713

(iv) "Nurse practitioner" means a nurse 714 practitioner certified under Section 73-15-20, Mississippi Code of 715 1972. 716

(v) "Physician" means an individual licensed to 717 practice medicine or osteopathic medicine under Section 73-25-1 et 718 seq., Mississippi Code of 1972. 719

(2) (a) (i) The tax credit authorized in this subsection 720 shall be available only to a taxpayer who is a business enterprise 721 engaged in commercial, industrial or professional activities and 722 operating as a corporation, limited liability company, partnership 723 or sole proprietorship. Except as otherwise provided in this 724 subsection, a credit is allowed against the taxes imposed by 725

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Sections 27-7-5, 27-15-103, 27-15-109 and 27-15-123, for voluntary 726 cash contributions made by a taxpayer during the taxable year to 727 an eligible charitable organization. A credit is also allowed 728 against ad valorem taxes assessed and levied on real property for 729 voluntary cash contributions made by the taxpayer during the 730 taxable year to an eligible charitable organization. The amount 731 of credit that may be utilized by a taxpayer in a taxable year 732 shall be limited to an amount not to exceed fifty percent (50%) of 733 the total tax liability of the taxpayer for the taxes imposed by 734 such sections of law and an amount not to exceed fifty percent 735 (50%) of the total tax liability of the taxpayer for ad valorem 736 taxes assessed and levied on real property. Any tax credit 737 claimed under this subsection but not used in any taxable year may 738 be carried forward for five (5) consecutive years from the close 739 of the tax year in which the credits were earned. 740

(ii) A contribution to an eligible charitable 741 organization for which a credit is claimed under this subsection 742 does not qualify for and shall not be included in any credit that 743 may be claimed under subsection (3) of this section. 744

(iii) A contribution for which a credit is claimed 745 under this subsection may not be used as a deduction by the 746 taxpayer for state income tax purposes. 747

(b) Taxpayers taking a credit authorized by this 748 subsection shall provide the name of the eligible charitable 749

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organization and the amount of the contribution to the department 750 on forms provided by the department. 751

(c) An eligible charitable organization shall provide 752 the department with a written certification that it meets all 753 criteria to be considered an eligible charitable organization. 754 The organization shall also notify the department of any changes 755 that may affect eligibility under this subsection. 756

(d) The eligible charitable organization's written 757 certification must be signed by an officer of the organization 758 under penalty of perjury. The written certification shall include 759 the following: 760

(i) Verification of the organization's status 761 under Section 501(c)(3) of the Internal Revenue Code; 762

(ii) A statement that the organization does not 763 provide, pay for or provide coverage of abortions and does not 764 financially support any other entity that provides, pays for or 765 provides coverage of abortions; 766

(iii) Any other information that the department 767 requires to administer this subsection. 768

(e) The department shall review each written 769 certification and determine whether the organization meets all the 770 criteria to be considered an eligible charitable organization and 771 notify the organization of its determination. The department may 772 also periodically request recertification from the organization. 773

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The department shall compile and make available to the public a 774 list of eligible charitable organizations. 775

(f) Tax credits authorized by this subsection that are 776 earned by a partnership, limited liability company, S corporation 777 or other similar pass-through entity, shall be allocated among all 778 partners, members or shareholders, respectively, either in 779 proportion to their ownership interest in such entity or as the 780 partners, members or shareholders mutually agree as provided in an 781 executed document. 782

(g) (i) A taxpayer shall apply for credits with the 783 department on forms prescribed by the department. In the 784 application the taxpayer shall certify to the department the 785 dollar amount of the contributions made or to be made during the 786 calendar year. Within thirty (30) days after the receipt of an 787 application, the department shall allocate credits based on the 788 dollar amount of contributions as certified in the application. 789 However, if the department cannot allocate the full amount of 790 credits certified in the application due to the limit on the 791 aggregate amount of credits that may be awarded under this 792 subsection in a calendar year, the department shall so notify the 793 applicant within thirty (30) days with the amount of credits, if 794 any, that may be allocated to the applicant in the calendar year. 795 Once the department has allocated credits to a taxpayer, if the 796 contribution for which a credit is allocated has not been made as 797 of the date of the allocation, then the contribution must be made 798

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not later than sixty (60) days from the date of the allocation. 799 If the contribution is not made within such time period, the 800 allocation shall be cancelled and returned to the department for 801 reallocation. Upon final documentation of the contributions, if 802 the actual dollar amount of the contributions is lower than the 803 amount estimated, the department shall adjust the tax credit 804 allowed under this subsection. 805

(ii) For the purposes of using a tax credit 806 against ad valorem taxes assessed and levied on real property, a 807 taxpayer shall present to the appropriate tax collector the tax 808 credit documentation provided to the taxpayer by the Department of 809 Revenue, and the tax collector shall apply the tax credit against 810 such ad valorem taxes. The tax collector shall forward the tax 811 credit documentation to the Department of Revenue along with the 812 amount of the tax credit applied against ad valorem taxes, and the 813 department shall disburse funds to the tax collector for the 814 amount of the tax credit applied against ad valorem taxes. Such 815 payments by the Department of Revenue shall be made from current 816 tax collections. 817

(h) The aggregate amount of tax credits that may be 818 allocated by the department under this subsection during a 819 calendar year shall not exceed Three Million Dollars 820 ($3,000,000.00). 821

(3) (a) (i) Except as otherwise provided in this 822 subsection, a credit is allowed against the taxes imposed by this 823

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chapter for voluntary cash contributions by an individual taxpayer 824 during the taxable year to an eligible charitable organization. A 825 credit is also allowed against ad valorem taxes assessed and 826 levied on real property for voluntary cash contributions made by 827 the taxpayer during the taxable year to an eligible charitable 828 organization. The amount of credit that may be utilized by a 829 taxpayer in a taxable year shall be limited to an amount not to 830 exceed fifty percent (50%) of the total tax liability of the 831 taxpayer for the taxes imposed by this chapter and an amount not 832 to exceed fifty percent (50%) of the total tax liability of the 833 taxpayer for ad valorem taxes assessed and levied on real 834 property. Any tax credit claimed under this subsection but not 835 used in any taxable year may be carried forward for five (5) 836 consecutive years from the close of the tax year in which the 837 credits were earned. 838

(ii) A husband and wife who file separate returns 839 for a taxable year in which they could have filed a joint return 840 may each claim only one-half (1/2) of the tax credit that would 841 have been allowed for a joint return. 842

(iii) A contribution to an eligible charitable 843 organization for which a credit is claimed under this subsection 844 does not qualify for and shall not be included in any credit that 845 may be claimed under subsection (2) of this section. 846

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(iv) A contribution for which a credit is claimed 847 under this subsection may not be used as a deduction by the 848 taxpayer for state income tax purposes. 849

(b) Taxpayers taking a credit authorized by this 850 subsection shall provide the name of the eligible charitable 851 organization and the amount of the contribution to the department 852 on forms provided by the department. 853

(c) An eligible charitable organization shall provide 854 the department with a written certification that it meets all 855 criteria to be considered an eligible charitable organization. 856 The organization shall also notify the department of any changes 857 that may affect eligibility under this subsection. 858

(d) The eligible charitable organization's written 859 certification must be signed by an officer of the organization 860 under penalty of perjury. The written certification shall include 861 the following: 862

(i) Verification of the organization's status 863 under Section 501(c)(3) of the Internal Revenue Code; 864

(ii) A statement that the organization does not 865 provide, pay for or provide coverage of abortions and does not 866 financially support any other entity that provides, pays for or 867 provides coverage of abortions; 868

(iii) Any other information that the department 869 requires to administer this subsection. 870

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(e) The department shall review each written 871 certification and determine whether the organization meets all the 872 criteria to be considered an eligible charitable organization and 873 notify the organization of its determination. The department may 874 also periodically request recertification from the organization. 875 The department shall compile and make available to the public a 876 list of eligible charitable organizations. 877

(f) (i) A taxpayer shall apply for credits with the 878 department on forms prescribed by the department. In the 879 application the taxpayer shall certify to the department the 880 dollar amount of the contributions made or to be made during the 881 calendar year. Within thirty (30) days after the receipt of an 882 application, the department shall allocate credits based on the 883 dollar amount of contributions as certified in the application. 884 However, if the department cannot allocate the full amount of 885 credits certified in the application due to the limit on the 886 aggregate amount of credits that may be awarded under this 887 subsection in a calendar year, the department shall so notify the 888 applicant within thirty (30) days with the amount of credits, if 889 any, that may be allocated to the applicant in the calendar year. 890 Once the department has allocated credits to a taxpayer, if the 891 contribution for which a credit is allocated has not been made as 892 of the date of the allocation, then the contribution must be made 893 not later than sixty (60) days from the date of the allocation. 894 If the contribution is not made within such time period, the 895

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allocation shall be cancelled and returned to the department for 896 reallocation. Upon final documentation of the contributions, if 897 the actual dollar amount of the contributions is lower than the 898 amount estimated, the department shall adjust the tax credit 899 allowed under this subsection. 900

(ii) For the purposes of using a tax credit 901 against ad valorem taxes assessed and levied on real property, a 902 taxpayer shall present to the appropriate tax collector the tax 903 credit documentation provided to the taxpayer by the Department of 904 Revenue, and the tax collector shall apply the tax credit against 905 such ad valorem taxes. The tax collector shall forward the tax 906 credit documentation to the Department of Revenue along with the 907 amount of the tax credit applied against ad valorem taxes, and the 908 department shall disburse funds to the tax collector for the 909 amount of the tax credit applied against ad valorem taxes. Such 910 payments by the Department of Revenue shall be made from current 911 tax collections. 912

(g) The aggregate amount of tax credits that may be 913 allocated by the department under this subsection during a 914 calendar year shall not exceed One Million Dollars 915 ($1,000,000.00). 916

SECTION 5. (1) As used in this section, the following words 917 and phrases shall have the meanings ascribed in this section 918 unless the context clearly indicates otherwise: 919

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(a) "Employment-related expenses" means and has the 920 same definition as such term has in 26 USCS Section 21. 921

(b) "Qualifying individual" means and has the same 922 definition as such term has in 26 USCS Section 21(b)(1)(A). 923

(2) Subject to the provisions of this section, any taxpayer 924 allowed to claim a federal income tax credit under 26 USCS Section 925 21 for employment-related expenses incurred related to one (1) or 926 more qualifying individuals shall be allowed a credit against the 927 taxes imposed under this chapter in the manner prescribed in this 928 section. The amount of the credit shall be equal to twenty-five 929 percent (25%) of the amount of the federal income tax credit 930 lawfully claimed by the taxpayer for such employment-related 931 expenses on the taxpayer's federal income tax return. However, 932 the amount of credit that may be utilized by a taxpayer in a 933 taxable year shall be limited to an amount not to exceed the total 934 tax liability of the taxpayer for the taxes imposed under this 935 chapter. In order to claim the credit provided for in this 936 section, a taxpayer must claim the federal income tax credit on 937 the taxpayer's federal income tax return and have an adjusted 938 gross income for such return of not more than Fifty Thousand 939 Dollars ($50,000.00). A taxpayer must provide a copy of such 940 return and any other information required by the department. 941

SECTION 6. Sections 3, 4, and 5 of this act shall be 942 codified as new sections in Chapter 7, Title 27, Mississippi Code 943 of 1972. 944

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SECTION 7. Nothing in this act shall affect or defeat any 945 claim, assessment, appeal, suit, right or cause of action for 946 taxes due or accrued under the income tax laws, insurance premium 947 tax laws or ad valorem tax laws before the date on which this act 948 becomes effective, whether such claims, assessments, appeals, 949 suits or actions have been begun before the date on which this act 950 becomes effective or are begun thereafter; and the provisions of 951 the income tax laws, insurance premium tax laws and ad valorem tax 952 laws are expressly continued in full force, effect and operation 953 for the purpose of the assessment, collection and enrollment of 954 liens for any taxes due or accrued and the execution of any 955 warrant under such laws before the date on which this act becomes 956 effective, and for the imposition of any penalties, forfeitures or 957 claims for failure to comply with such laws. 958

SECTION 8. This act shall take effect and be in force from 959 and after January 1, 2023. 960