Effective Date: January 1, 2023

House Bill 1671 of the 2023 Regular Session allows for a tax credit for voluntary cash contributions to eligible transitional home organizations (ETHO). This credit is available to both Individual and Business taxpayers.

2023 Information for ETHO Credits INDIVIDUAL

Total Maximum Allocation for 2023: $1,000,000

Limits on Total Allocations per ETHO (Individual Contributions) for 2023: N/A

Who can Qualify as an ETHO: Organizations that provide temporary transitional housing to homeless persons aged twenty-five (25) and under, homeless families, and/or homeless and/or referred unwed pregnant women with temporary shelter and facilitate their movement to permanent housing within an amount of time determined by the ETHO.

Who can Apply for an Allocation of Credit: Individual Taxpayers Tax-Types that Credit can be used against: Income Tax (50% of tax liability), Ad Valorem Tax (50% of real property tax liability) Carry Forward: 5 years

Other Limitations: Contribution cannot be used for other state charitable credits and cannot be used as a deduction for state income tax purposes

2023 Information for ETHO Credits BUSINESSES

Total Maximum Allocation for 2023: $10,000,000

Limits on Total Allocations per ETHO (Business Contributions) for 2023: 25% of the maximum allocation ($2,500,000)

Who can Qualify as an ETHO: Organizations that provide temporary transitional housing to homeless persons aged twenty-five (25) and under, homeless families, and/or homeless and/or referred unwed pregnant women with temporary shelter and facilitate their movement to permanent housing within an amount of time determined by the ETHO.

Who can Apply for an Allocation of Credit: Business Taxpayers (Corporations, Partnerships, Limited Liability Companies, and Sole Proprietorships)

Tax-Types that Credit can be used against: Income Tax (50% of tax liability), Insurance Premium Tax (50% of tax liability), Insurance Premium Retaliatory Tax (50% of tax liability), Ad Valorem Tax (50% of real property tax liability)

Carry Forward: 5 years

Other Limitations: Contribution cannot be used for other state charitable credits and cannot be used as a deduction for state income tax purposes

 

Currently the following Organizations have been approved for Individual and Business credits:

• Hope Village for Children
• Mississippi Children’s Home Society
• Southern Christian Services
• Sunnybrook Children’s Home

 

Credit: Department of Revenue www.dor.ms.gov/credits/ETHO