Children's Promise Act Tax Credit
Keep your Mississippi taxes close to home.
Mississippi lets businesses send part of what they already owe the state to approved local nonprofits. Your gift comes back to you as a state tax credit, and families in South Mississippi get the help.
THE SHORT VERSION
Same tax bill. More good done close to home.
Through the Children's Promise Act, Mississippi gives a state tax credit to businesses that make a cash gift to an approved organization serving children and families. Instead of that money going to Jackson as taxes, it goes to work in Marion, Forrest, Lamar and Walthall Counties through Hope Community Collective.
[CONFIRM: HCC's current approval status as an Eligible Charitable Organization (ECO) with MS DOR]
50%
Of your tax liability
The credit can cover up to half of what you owe on each eligible tax.
5 yrs
To use your credit
Any credit you can't use this year carries forward for up to five years.
30 days
To hear back
The Department of Revenue answers your application by letter, usually within 30 days.
WHO CAN GIVE THIS WAY
Built for Mississippi businesses.
This credit is for business taxpayers: corporations, partnerships, LLCs and sole proprietorships. Which taxes you can use it against depends on how your business is set up.
EVERY ELIGIBLE BUSINESS
Income and insurance taxes
Use the credit for up to 50% of your liability on any of these:
Mississippi income tax
Insurance premium tax
Insurance premium retaliatory tax
BUSINESSES NOT SET UP AS A CORPORATION
Real property tax
If your business is a partnership, LLC or sole proprietorship (not operating as a corporation), you can also put the credit toward up to 50% of your real property tax on business property.
The property tax credit can't be used for car tags.
Giving as an individual? This particular credit is only for businesses, but we'd still love to talk. See other ways to give.
HOW IT WORKS
Six steps, start to finish.
The state handles approvals, and we'll walk with you through each one. Credits are limited each year and go out in the order applications come in, so applying early matters.
01 Figure out your number
Look at what your business expects to owe on the tax you want to use. Your credit can be up to half of that amount. Your CPA can help you land on the right figure.
02 Apply with the Department of Revenue
Submit the free online application through MS DOR's Taxpayer Access Point (TAP). No login is needed. Name Hope Community Collective as the organization you're giving to. For 2027, applications open Monday, January 4, 2027 at 8:00 a.m. Central.
03 Watch for your approval letter
DOR will send a letter within about 30 days that sets aside your credit and tells you your donation deadline.
04 Make your gift to HCC
Give within 60 days of the approval letter or by December 31, whichever comes first. We'll send you a written receipt right away. [CONFIRM: how HCC accepts these gifts (check, ACH, online) and who sends the receipt]
05 Send DOR your proof of donation
Upload our receipt through TAP using the Letter ID on your DOR letter, or mail it in. Missing this step can cancel the credit, so don't skip it.
06 Claim your credit
DOR mails a final letter confirming your credit, usually within 30 days. If you're using it for property tax, they'll include a schedule for your County Tax Collector to complete.
WHAT IT COULD LOOK LIKE
A simple example.
Your business's Mississippi income tax for the year
Most you can apply for (50%)
You give to Hope Community Collective
State tax credit you receive
What you still pay the state
This is a simplified illustration, not a promise of any result. A gift used for this credit can't also be taken as a state income tax deduction. Your actual credit depends on your approval letter and your own tax situation, so check with your tax advisor.
$20,000
$10,000
$10,000
$10,000
$10,000