Income tax and ad valorem tax; increase limit on amount of credits that may be allocated for certain contributions to certain charitable and foster care organizations.

HB 395 increases Mississippi income tax and property tax credits for donations to qualifying charitable and foster care organizations. It raises the annual income tax credit limit for single filers from $400 to $1,200 (and for married couples from $800 to $2,400), while fostering separate credits for foster care donations (increasing from $500/$1,000 to $1,500/$3,000 annually). Taxpayers can also apply credits against property taxes, limited to 50% of property tax liability, with unused credits carried forward for up to five years. These changes directly affect Mississippi taxpayers making cash donations to organizations meeting specific criteria, such as serving low-income residents or children in foster care.