AN ACT TO AMEND SECTION 27-7-22.48, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF "ELIGIBLE CHARITABLE ORGANIZATION," FOR PURPOSES OF AN INDIVIDUAL AND BUSINESS INCOME TAX CREDIT, TO INCLUDE A 501(C)(3) ORGANIZATION THAT RAISES FUNDS FOR QUALIFIED TUITION PROGRAMS UNDER SECTION 529 OF THE INTERNAL REVENUE CODE FOR THE CHILDREN OF EMPLOYEES OF A MISSISSIPPI COUNTY SHERIFF'S DEPARTMENT OR MUNICIPAL POLICE DEPARTMENT; AND FOR RELATED PURPOSES.
SB 2851 amends Mississippi’s existing income and ad valorem tax credit for contributions to “eligible charitable organizations.” The bill keeps the current category of organizations that spend at least 50% of their budget on health care services for low-income residents through physicians or nurse practitioners, and it adds a second qualifying category: a 501(c)(3) organization that raises funds for Section 529 qualified tuition programs for the children of employees of a Mississippi county sheriff’s department or municipal police department. The bill applies to both individual and business taxpayers and preserves the existing structure of the credit, including the 50% cap on use of the credit against tax liability and the five-year carryforward period.
The measure also retains the administrative framework for claiming the credit. Taxpayers must report contributions to the Department of Revenue, eligible organizations must certify their status and eligibility, and the department must review certifications and publish a public list of qualifying organizations. The bill continues to prohibit a contribution from being used both for this credit and for the separate credit under the other subsection, and it continues to bar a state income tax deduction for the same contribution. The aggregate annual credit caps remain $3 million for business taxpayers and $1 million for individual taxpayers, and the act takes effect January 1, 2026.
In practical terms, the bill would expand the pool of charitable organizations that can receive contributions generating Mississippi tax credits, specifically to include scholarship or tuition-assistance fundraising for children of sheriff’s department and municipal police department employees. That change would affect taxpayers who make qualifying donations, the Department of Revenue’s certification and allocation process, and the nonprofit organizations that seek designation as eligible charitable organizations. It would not create a new tax credit, but rather broaden the kinds of organizations that can qualify under the existing credit program.
The available legislative context shows no recorded committee debate or vote history, so there is no documented floor or committee sentiment to measure directly. Based on the bill’s structure and sponsors, the measure appears to be framed as a targeted expansion of an existing tax incentive, with a focus on supporting public safety families and continuing support for low-income health care charities. Because there are no transcripts or votes, there is no clear evidence of opposition or support in the record provided.
The main point of contention inherent in the text is the policy choice to extend a tax credit to organizations supporting tuition programs for law enforcement families while preserving the bill’s existing abortion-related exclusion for eligible organizations. Another possible issue is the fiscal effect of enlarging the set of qualifying charities within fixed annual credit caps, which could affect how quickly credits are allocated and which organizations benefit. However, no specific objections or amendments are shown in the materials provided.
SB 2851 would amend Section 27-7-22.48 of the Mississippi Code to expand the definition of “eligible charitable organization” for purposes of Mississippi’s individual and business income tax credits and related ad valorem tax credits. The bill adds 501(c)(3) organizations that raise funds for Section 529 qualified tuition programs for children of county sheriff’s department and municipal police department employees, while leaving the existing health-care-based eligibility category in place. The Department of Revenue would continue to certify organizations, maintain a public list of eligible charities, and administer the credit allocation process under the current statutory framework. The bill does not change the basic credit percentages, carryforward rules, or annual statewide caps, but it broadens which nonprofit recipients can generate credit-eligible contributions.
The bill appears to have a generally supportive or at least targeted policy purpose, based on its sponsors and its narrow expansion of an existing tax credit to benefit law enforcement families and low-income health care charities. No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, amendments, or formal opposition in the available record. The overall tone of the legislation suggests a positive framing around charitable giving and support for public safety personnel, rather than a controversial overhaul of tax policy.
The most notable policy tension is that SB 2851 expands a tax credit program by adding a new class of qualifying charitable organizations tied to tuition assistance for law enforcement families, which may raise questions about preferential treatment or the use of tax expenditures for a specific occupational group. The bill also preserves the existing exclusion for organizations that provide or support abortion coverage, which remains a built-in point of ideological contention in the underlying tax credit statute. Beyond those issues, the fixed annual credit caps could become a practical point of competition among eligible organizations, but no specific objections or stakeholder disputes are documented in the materials provided.