Income tax; authorize a credit for contributions to certain charitable organizations.

HB 738 allows Mississippi taxpayers to claim an income tax credit for cash donations to qualifying charities that provide services to individuals with disabilities. The credit is limited to 50% of a taxpayer’s state income tax liability, with unused portions carried forward for up to five years. To qualify, charities must spend at least 50% of their budget on services to at least 15 people annually in Mississippi, meet federal 501(c)(3) status, and certify they do not fund or support abortion services. The bill specifies that donations used for this credit cannot also be claimed as a tax deduction.