MS HB395

Increases the annual aggregate cap on tax credits for contributions to qualifying charitable organizations and foster care organizations from $1 million to $3 million, effective January 1, 2026

The $1 million annual cap has been in effect since 2021 and will remain through calendar year 2025 before the increase takes effect

Qualifying charitable organizations must be 501(c)(3) nonprofits that spend at least 50% of their budget serving low-income residents (below 150% federal poverty level), TANF recipients, children with disabilities, or foster care children in Mississippi

Individual taxpayers can claim income tax and ad valorem (property) tax credits for voluntary cash contributions, with maximum credits of $1,200/$2,400 for single/joint filers to general charities and $1,500/$3,000 for foster care charities

Organizations that provide, pay for, or financially support abortion services are explicitly excluded from qualifying as charitable organizations under this program