Bill Amendment: MS HB4032 | 2026 | Regular Session
Bill Title: Tax credits; authorize for contributions by certain taxpayers to certain hospitals.
Status: 2026-03-28 - Died In Conference [HB4032 Detail]
Download: Mississippi-2026-HB4032-Senate_Committee_Amendment_No_1.html
Pending
COMMITTEE AMENDMENT NO 1 PROPOSED TO
House Bill No. 4032
BY: Committee
Amend by striking all after the enacting clause and inserting in lieu thereof the following:
SECTION 1. (1) As used in this section, the following words and phrases shall have the meanings ascribed herein, unless the context clearly indicates otherwise:
(a) "Rural hospital" means a hospital, as that term is defined in Section 41-7-173(h)(i), which is located in a county that does not contain a municipality whose population exceeds fifteen thousand (15,000) according to the 2020 decennial census, and that also does not contain any portion of a municipality whose population exceeds fifteen thousand (15,000) according to the 2020 decennial census. A hospital located in Washington County is also a rural hospital.
(b) "Voluntary cash contribution" means a cash contribution made to a rural hospital by a taxpayer and does not include payment for or the donation of merchandise, services or goods.
(2) (a) Except as otherwise provided in this section, a credit is allowed against the taxes imposed by this chapter for voluntary cash contributions made by a taxpayer during a tax year to a rural hospital. The amount of credit that may be utilized by a taxpayer in a tax year shall be limited to an amount not to exceed the lesser of the amount contributed during a tax year or fifty percent (50%) of the total tax liability of the taxpayer for the tax year.
(b) Except as otherwise provided in this section, an alternative credit is allowed against ad valorem taxes assessed and levied on real property for voluntary cash contributions made by an individual taxpayer during the tax year to a rural hospital. The amount of credit that may be utilized by a taxpayer in a tax year shall be limited to an amount not to exceed fifty percent (50%) of the total tax liability of the taxpayer for ad valorem taxes assessed and levied on real property.
(c) A taxpayer may not claim a credit under both paragraphs (a) and (b) of this subsection (2) for the same voluntary cash contribution.
(d) A husband and wife who file separate returns for a tax year in which they could have filed a joint return may each claim only one-half (1/2) of the credit that would have been allowed for a joint return.
(e) Any credit claimed under this section but not used in a tax year may be carried forward for five (5) consecutive tax years from the close of the tax year in which the credits were earned.
(f) A contribution for which a credit is claimed under this section may not be used as a deduction by the taxpayer for state income tax purposes.
(g) A taxpayer claiming a credit authorized by this section shall provide the name of the rural hospital and the amount of the contribution to the department on forms provided by the department.
(h) A rural hospital shall provide the department with a written certification that it meets the criteria to be considered a rural hospital. The rural hospital shall also notify the department of any changes that may affect eligibility under this section.
(i) The department shall review each written certification and determine whether the hospital meets the criteria to be considered a rural hospital and notify the hospital of its determination. The department may also periodically request recertification from the hospital. The department shall compile and make available to the public a list of eligible rural hospitals.
(j) Credits authorized by paragraph (a) of this subsection (2) that are earned by a partnership, limited liability company, S corporation or other similar pass-through entity shall be allocated among all partners, members or shareholders, respectively, either in proportion to their ownership interest in such entity, or as the partners, members or shareholders mutually agree as provided in an executed document.
(k) A taxpayer shall apply for credits with the department on forms prescribed by the department. In the application, the taxpayer shall certify to the department the dollar amount of the contributions made or to be made during the calendar year. Within thirty (30) days after the receipt of an application, the department shall allocate credits based on the dollar amount of contributions as certified in the application. However, if the department cannot allocate the full amount of credits certified in the application due to the limit on the aggregate amount of credits that may be awarded under this section in a calendar year, the department shall so notify the applicant within thirty (30) days with the amount of credits, if any, that may be allocated to the applicant in the calendar year. Once the department has allocated credits to a taxpayer, if the contribution for which a credit is allocated has not been made as of the date of the allocation, then the contribution must be made not later than sixty (60) days from the date of the allocation. Documentation of the contribution must be received by the department within seventy-five (75) days from the date of the allocation or January 15 of the following year, whichever occurs first. If the contribution is not made or the department does not receive documentation of the contribution within such time period, the allocation of credit shall be canceled and returned to the department for reallocation. Upon final documentation of the contributions, if the actual dollar amount of the contributions is lower than the amount estimated, the department shall adjust the credit allowed.
(l) The amount of credits that may be allocated by the department under this section for voluntary cash contributions to any single rural hospital during a calendar year shall not exceed One Hundred Thousand Dollars ($100,000.00).
(m) The aggregate amount of credits that may be allocated by the department under this section during a calendar year shall not exceed One Million Dollars ($1,000,000.00).
(n) The department shall not allocate any credits authorized by paragraph (a) of this subsection (2) after December 31, 2040.
SECTION 2. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter, and the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.
SECTION 3. Section 1 of this act shall be codified as a new section in Chapter 7, Title 27, Mississippi Code of 1972.
SECTION 4. This act shall take effect and be in force from and after January 1, 2026, and shall stand repealed on December 31, 2025.
Further, amend by striking the title in its entirety and inserting in lieu thereof the following:
AN ACT TO PROVIDE AN INCOME TAX CREDIT, OR AN ALTERNATIVE CREDIT FOR AN INDIVIDUAL TAXPAYER AGAINST AD VALOREM TAXES ON REAL PROPERTY, FOR VOLUNTARY CASH CONTRIBUTIONS TO A RURAL HOSPITAL; TO SPECIFY THE AMOUNT OF THE CREDIT; TO CLARIFY THAT A TAXPAYER MAY NOT CLAIM BOTH KINDS OF CREDIT FOR THE SAME VOLUNTARY CASH CONTRIBUTION; TO PROVIDE THAT ANY UNUSED PORTION OF THE CREDIT MAY BE CARRIED FORWARD FOR THE FIVE SUCCEEDING TAX YEARS; TO SPECIFY THE PROCESS BY WHICH A CREDIT MAY BE CLAIMED AND ALLOCATED; TO PRESCRIBE THAT THE MAXIMUM AMOUNT OF CREDITS THAT MAY BE ALLOCATED FOR VOLUNTARY CASH CONTRIBUTIONS TO ANY SINGLE RURAL HOSPITAL DURING A CALENDAR YEAR SHALL NOT EXCEED $100,000.00; TO PRESCRIBE THAT THE MAXIMUM AGGREGATE AMOUNT OF CREDITS THAT MAY BE ALLOCATED DURING A CALENDAR YEAR SHALL NOT EXCEED $1,000,000.00; AND FOR RELATED PURPOSES.
