MS SB2851

Expands the definition of "eligible charitable organization" for Mississippi income tax credits to include 501(c)(3) organizations that raise funds for Section 529 qualified tuition programs for children of county sheriff's department or municipal police department employees.

Currently eligible organizations must spend at least 50% of their budget on healthcare services for low-income residents; the new category adds education savings fundraising for law enforcement families as a separate qualifying purpose.

Tax credits allow businesses to offset up to 50% of state income tax liability and 50% of property tax liability, with a $3 million annual cap for business credits and $1 million for individual credits.

Unused credits may be carried forward for 5 consecutive years; contributions claimed as credits cannot also be deducted for state income tax purposes.

Effective date is January 1, 2026.