Children’s Promise Act

Who can give?

An income tax credit is available to any business who commits to a voluntary cash contribution of up to 50% of their state tax liability to an eligible educational services 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, partnerships, or sole proprietorship.

How much can I give?

Business taxpayers may donate and receive a dollar-for-dollar tax credit for up to 50% of a taxpayer’s Mississippi State tax liability. The credit is allowed against fifty percent (50%) of the taxpayer’s total income tax liability, fifty percent (50%) of the taxpayer’s total insurance premium tax liability, and in the case of taxpayers not operating as a corporation, fifty percent (50%) of the total real property ad valorem tax liability. A contribution, for which an Eligible Charitable Business Contribution Tax Credit is claimed, may not be used as a deduction by the taxpayer for state income tax purposes.

How does applying for a Children’s Promise Act tax-credit work?

1. The taxpayer must complete the Department of Revenue’s application seeking approval to participate in the program. The Department of Revenue will release the application for the upcoming year in early November 2023. We will send out another communication when the application is posted.

2. This is a highly competitive program: the window to apply opens at 12:00 A.M. on January 1 and credits are granted on a first-come-first-served basis. The state-wide cap is always reached within minutes into the New Year. To be approved, your application must be submitted via email to the Department of Revenue at midnight on January 1.

3. FPDS would like to partner with you in this effort by submitting the form at that time—we will submit this form at midnight on January 1 on your behalf.

4. Within thirty (30) days of receiving the form, the Mississippi Department of Revenue shall respond to your application with an approval or denial letter. The Department will issue a letter earmarking credits that are available for allocation with instructions for the applicant to submit a copy of the contribution documentation from the charitable organization.

5. If the Mississippi Department of Revenue approves an application, the taxpayer may make the contribution and send the verification of the contribution to the Mississippi Department of Revenue within sixty (60) days from the date the approval was granted.

Do I have to contribute 50% of my state tax liability?

No—the maximum amount eligible for which to receive a tax credit is 50% of your state tax liability, but you can apply to give any amount less than 50%. The tax credits can also be carried forward up to 5 years—so even if you contribute more than your 50% tax liability, you can carry the credits forward and utilize them in future years.

If my application is denied, am I still obligated to make a contribution to FPDS?

Not at all—if your application is not approved by the Department of Revenue, there is no expectation that you must give that gift to FPDS.

When do I pay the contribution to FPDS?

If your application is approved by the Department of Revenue, the applicant has 60 days to make the approved gift to FPDS. FPDS will promptly provide you with an acknowledgment of your gift; upon receipt of the acknowledgement, the Department of Revenue will issue your business an approved allocation letter for a tax credit in the amount of your gift.

Additional questions? Please email Chase Wynn at chasew@fpcjackson.org.