The Mississippi Children’s Promise Act is a Mississippi law that was passed by the Mississippi legislature in 2019 that allows Mississippi business organizations to file an application for a tax credit against their Mississippi corporate income tax, with the amount of tax credit approved by Mississippi Department of Revenue then contributed to an approved Educational Services Charitable Organization (ESCO).

 

Under this legislation, Mississippi businesses that have Mississippi corporate income tax liability fill out an application for a tax credit against the taxes owed to the Mississippi Department of Revenue. This tax credit is capped for corporations and insurance companies at an aggregate of $9 million per year and is allocated to the Mississippi business organization on a first come, first serve basis. The tax credit is only available to organizations that submit an application to the Mississippi Department of Revenue. The Department assesses and approves the applications and gives the approved corporation an allocation of the $9 million available, on a first come, first serve basis.

Upon receiving an approved tax credit allocation, the approved Mississippi business organization reduces its tax paid during the tax year. The amount of tax credit allocation approved for the business organization is then paid to the ESCO that was designated in the tax credit application.
 

A business can receive a dollar-for-dollar tax credit for up to 50% of its tax liability for the given year.

An ESCO, or Educational Services Charitable Organization, is an 501c3 charitable organization that has sought the ESCO designation and been approved for that designation by the Mississippi Department of Revenue. Only approved and designated ESCO’s may receive the charitable proceeds associated with the tax credits allocated through the Children’s Promise Act.

Madison-Ridgeland Academy has been granted approval as a designated ESCO by the Mississippi Department of Revenue.

By law, after a business operating in Mississippi receives their approval of their application for a specified tax credit allocation, the approved business operating in Mississippi has 60 days to pay the ESCO (MRA) the charitable contribution amount equal to the amount of the tax credit allocation amount approved by the Department of Revenue. 

Please contact Mary Claire Parrish at mcparrish@mrapats.org or 601.856.4455 with any questions about how your gift may be utilized or about the process.