On April 21, Gov. Reeves signed the Pregnancy Resource Act (PRA) into law. This policy encourages businesses to redirect a portion of their tax liability to donate to pregnancy resource centers. This law recognizes the vital work Mississippi’s pregnancy centers are doing and gives donors the option to direct would-be tax dollars to these nonprofit organizations. Mississippi has more than 37 pregnancy resource centers providing women with free services and a safe place to talk through their pregnancy decisions, learn about resources and support available to them, and make an informed choice.
Pregnancy centers rely on private funding from donors. The PRA stimulates businesses to connect to their local pregnancy centers in an essential financial partnership. CPC Metro Executive Director Erin Kate Goode states, “Business owners have said that it sounds too good to be true to be able to give generously to charities without affecting their budgets, and they are genuinely grateful that Mississippi has made this bold move. We are extremely grateful that our state leaders had the foresight to pass this legislation at this important moment for Mississippi.” Pregnancy centers are excited for the possibilities that these new partnerships could open, especially in this post-Roe era when women need support more than ever.
The PRA allows for a Mississippi state income tax credit for voluntary cash contributions to a qualified pregnancy resource center organization (PRCO). Businesses can be credited back dollar for dollar from their contribution for as much as 50 percent of their income tax liability, insurance premium tax liability, or real property ad valorem liability for non-corporations. The credit can even carry over for up to five years. Any business with a Mississippi tax liability should qualify, but credits will be allocated on a first-come basis because the state has designated 3.5 million dollars toward the credit per calendar year. Businesses need to act quickly to apply for the credit before the funds are gone.
A business can apply for the PRA tax credit before donating. Applications are available on the Mississippi Department of Revenue (MDOR) website. Once the application is received, the MDOR will reply about the eligibility of the gift within 30 days. Businesses have 60 days from this response to make their donation and return the receipt to the MDOR to secure their allocation.
Mississippi legislators hope the PRA will inspire businesses to support women and families through financial partnerships with local pregnancy centers. Many more women, children and families will find needed support if businesses take advantage of this opportunity. We celebrate with our Mississippi leaders who are building a culture of life for our state and helping us make abortion unthinkable.
*This information is not intended to give tax advice. Please consult with your tax professional about your specific tax questions. Find out more information about the PRA tax credit at cpcmetrofriends.org/give/