HB 1944 Mississippi House · 2026 Regular Session

Taxation; revise credits authorized for contributions to certain eligible charitable organizations.

HB 1944 increases the maximum annual tax credit amount for Mississippi businesses that donate to qualifying charities and creates a new income tax credit for voluntary cash contributions to these organizations. It affects businesses (corporations, LLCs, partnerships, or sole proprietorships) that make qualifying donations, expanding eligibility to include charities focused on child welfare, foster care services, or education for vulnerable children. Unused credits can be carried forward for five years, and qualifying organizations must provide certification proving they meet specific criteria (e.g., 501(c)(3) status, no abortion funding) and serve children in foster care, with chronic illnesses, or from low-income families. The bill also prohibits using these credits for any abortion-related services or activities.

Issues: ✓ Budget & Taxes

Bill status signed all 5 stages cleared

Introduction

Feb 2026

Committee Review

Mar 2026

House Passage

Feb 2026

Senate Passage

Mar 2026

Signed into Law

Apr 2026

Introduced Feb 26, 2026 Signed Apr 8, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

As Passed the lower → Current version · 5 edits

MODERATE

This bill was revised to expand tax credit eligibility to include special-purpose schools for students with disabilities, while simultaneously reducing the percentage of total credits available for general educational charities. The legislation also reorganized the funding structure to set specific annual caps for new school contributions and adjusted the maximum credit limits for individual organizations to prevent concentration of funds.

Scope change

The bill's scope expanded from general charitable organizations and educational services charities to explicitly include a new category for special-purpose schools serving students with physical, intellectual, developmental, or emotional disabilities.

ELIGIBILITY

Added a new definition for 'special-purpose school' as a distinct eligible charitable organization type, allowing tax credits for contributions to non-profit schools serving students with disabilities.

FISCAL

Reduced the percentage of total tax credits that can be allocated to general educational services charities from 50% to 25% to accommodate the new funding stream for special-purpose schools.

Established a new specific annual cap of $6 million for credits allocated to special-purpose schools, with a sub-limit of $1.25 million per organization and $500,000 per school location.

Changed the limit for credits to a single general educational charity from 4.5% to 4% for years 2027 and beyond, while maintaining a 25% cap for years 2023-2026.

SCOPE

Removed the separate 'Qualifying Charitable Organization' section (Section 2) which previously defined a different set of criteria for individuals with disabilities, as those provisions were likely consolidated or superseded by the new special-purpose school language.

As Introduced → Committee Substitute · 7 edits

MODERATE

The Committee Substitute significantly expands the bill's scope by adding a new tax credit for individual taxpayers and businesses to donate to a broader range of charitable organizations, not just those serving children. It increases the total funding cap for these credits and introduces a five-year carry-forward option for unused credits. The bill also adds strict new definitions and requirements, specifically prohibiting any qualifying organization from providing or financially supporting abortion services.

Scope change

The bill's scope expanded from exclusively funding contributions to child-focused charitable organizations to also include a separate credit for contributions to general charitable organizations serving individuals with disabilities or financial hardship.

SCOPE

Added a new Section 2 creating a tax credit for voluntary cash contributions to 'qualifying charitable organizations' that serve individuals with disabilities or families facing financial hardship, in addition to the existing credit for child-focused organizations.

FISCAL

Increased the aggregate annual tax credit cap from $5 million to $32 million for 2026, with a scheduled increase to $40 million for 2028 and subsequent years.

TIMELINE

Added a provision allowing taxpayers to carry forward unused tax credits for five consecutive years from the close of the tax year in which the credit was earned.

DEFINITION

Defined 'qualifying charitable organization' as one that spends at least 50% of its budget on services to qualified individuals (adults or children with disabilities unable to live independently) and serves at least 15 such individuals annually.

REQUIREMENT

Added a mandatory requirement that all eligible and qualifying charitable organizations must certify they do not provide, pay for, or financially support abortion services or entities that do.

ELIGIBILITY

Expanded eligibility for the child-focused credit to include organizations serving children with chronic illnesses, disabilities, or those at risk of entering foster care, in addition to those working on adoption and diversion.

Changed the allocation rules for unused credits after October 1, allowing credits originally intended for child-focused organizations to be used for general charitable organizations and vice versa within the same calendar year.

Floor votes · Senate Mar 17, 2026 · House Feb 25, 2026

How they voted

32–14

Passed · 4 other

Total votes 50

Mar 17, 2026

D Democratic17

3 Yea 13 Nay 1

76% Nay

R Republican33

29 Yea 1 Nay 3

87% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 8, 2026

Signed into law

Approved by Governor

executive

Mar 29, 2026

Lower · Passed

Conference Report Adopted

lower

Mar 27, 2026

Lower · Passed

Conference Report Filed

lower

Mar 17, 2026

Upper · Passed

Passed As Amended

upper

Mar 17, 2026

Upper · Passed

Amended

upper

Mar 16, 2026

Upper · Passed

Title Suff Do Pass As Amended

upper

Mar 4, 2026

Committee

Referred To Finance

upper

Feb 26, 2026

Introduced

Transmitted To Senate

lower

Feb 25, 2026

Lower · Passed

Passed

lower

Feb 24, 2026

Lower · Passed

Title Suff Do Pass Comm Sub

lower

Feb 16, 2026

Committee

Referred To Ways and Means

lower

1 primary · 0 co-sponsors