Maternity Home Tax Credit
What is the Maternity Home Tax Credit?
By donating cash, stock, bonds, real property or other marketable securities to a qualified maternity home, Missouri taxpayers:
- Help fund maternity homes to assist pregnant women carry their pregnancies to term, and
- Can receive a tax credit for up to 50% of their contribution of $100 or more.
What is a qualified maternity home?
Qualified maternity homes meet the following requirements:
- Provides services at no cost to clients;
- Residential facility located in the state of Missouri;
- Established for the purpose of providing housing and assistance to pregnant women who are carrying their pregnancies to term;
- Exempt from income taxation; and
- Does not perform, induce, or refer for abortions and that does not hold itself out as performing, inducing, or referring for abortions.
How does maternity home become a qualified agency?
To qualify, each year the maternity home submits:
- A completed Application form
- A copy of their certificate of incorporation;
- A tax-exempt certificate from the Internal Revenue Service; and,
- A brief statement of their primary business functions including number and ages of women served annually, facility capacity and services provided
- Facilities serving women under the age of eighteen (18) must provide proof of licensure with the Department of Social Services Children’s Division (i.e. license certificate or letter of good standing).
- Facilities considered exempt from licensure, as described in section 210.516 RSMo, must attest to that status.
Where are qualified maternity homes located?
What role does Department of Social Services' (DSS) play for this tax credit?
Department of Social Services (DSS) administers the tax credit.
Who can claim this tax credit?
- A person, firm, partner in a firm, corporation, or a shareholder in an S corporation doing business in the state of Missouri and subject to the state income tax imposed in chapter 143 RSMo;
- A corporation subject to the annual corporation franchise tax imposed in chapter 147 RSMo;
- An insurance company paying an annual tax on its gross premium receipts in this state;
- Any other financial institution paying taxes to the state of Missouri or any political subdivision of this state under chapter 148 RSMo;
- An express company which pays an annual tax on its gross receipts in this state pursuant to Chapter 153 RSMo;
- An individual subject to the state income tax imposed in Chapter 143, RSMo.
- Any charitable organization which is exempt from federal income tax and whose Missouri unrelated business taxable income, if any, would be subject to the state income tax imposed under chapter 143, RSMo.
The amount of the claimed tax credit may not exceed the amount of the taxpayer’s state income tax liability for the year the credit is being claimed and can not exceed fifty thousand dollars ($50,000) per taxable year.
Any tax credit that cannot be claimed in the tax year associated with the contribution may be carried forward and used against a taxpayer’s state tax liability the next tax year.
How does the credit work?
- (Step 1) Annually, maternity homes desiring to participate in this tax credit program must submit an Agency Eligibility Verification application and supporting documentation to DSS to determine qualification status for the next state fiscal year.
- (Step 2) DSS notifies maternity homes of their eligibility and equally apportions the total available tax credits among the eligible homes. These credits are effective beginning July 1 of each state fiscal year. The amount of credits available cannot exceed $3.5 million in a state fiscal year (July 1 through June 30) effective July 1, 2019
(Step 3) If determined eligible by DSS, the maternity home may begin receiving contributions eligible for the tax credit beginning July 1. Note: Maternity homes are permitted to decline a contribution from a taxpayer.
Annually, DSS publishes a list of qualified maternity homes which are eligible for the Maternity Home Tax Credit. To request a copy you may call (573) 751-7533 or write to us at the following address:
Department of Social Services
Attention: Maternity Home Tax Credit Program
PO Box 626
Jefferson City, MO 65102-0626
If a maternity home has a change in business functions that impacts their qualifying status, they must contact the Department of Social Services within 30 days. The Department of Social Services will review the eligibility to participate in the tax credit and notify the agency of the determination within 30 days of receiving the notification of change.
- (Step 4) A donor contributes to a qualified maternity home. Note: There is a $100 minimum contribution, of which 50% is tax-credit-eligible. Donors can claim up to a $50,000 credit per tax year.
(Step 5) The maternity home and the taxpayer must complete their portion of the Maternity Home Tax Credit Application. Applications and supporting documentation must be submitted to DSS by the qualified home within twelve (12) months of the donation date. Applications received after one year of the donation date will be void and the right to the tax credit is forfeited. Required documentation varies depending on the type of donation:
Supporting Documentation Required:
- For a cash contribution, a legible receipt indicating the name and address of the maternity home; name, address and telephone number of the contributor; amount and date the contribution was received; and, signature of a representative of the maternity home receiving the contribution.
- For a contribution made by check, a photocopy of the canceled check, front and back (if not possible, then a copy of the original check and a receipt from the maternity home including the same information required of a cash donation).
- For a contribution made by credit card, a legible transaction receipt with the name and address of the maternity home; contributor’s name, address and telephone number; amount and date the contribution was received; and, signature of a representative of the maternity home receiving the contribution. Note: Receipts should have the credit card account number blacked out.
- For a contribution made by money order or cashiers check, a legible copy of the original document with the name and address of the maternity home; contributor’s name, address and telephone number; amount and date the contribution was received; and, signature of a representative of the maternity home receiving the contribution.
- For a contribution made by stock, bonds and other marketable securities, values of contributed stocks and bonds must be determined by a reputable source (e.g., Wall Street Journal, New York Stock Exchange [NYSE], National Association of Securities Dealers Automated Quotations [NASDAQ], etc.) Required information includes the source, value and date the stock was valued and how the bond amount was determined.
- For a contribution of real estate, the value of contributions of real estate shall be equal to the lower of at least two qualified independent appraisals for commercial, vacant or residential property with a value of more than $50,000. Commercial, vacant or residential property having a value of $50,000 or less requires one appraisal.
- For contributions that include a benefit to the donor, documentation will depend on how the type of contribution is made (i.e., cash, check, etc., please see above.) Additional information required includes the type of function or event from which the benefit was received, description of the benefit received (if an auction item, identify the item received), gross amount of the contribution, fair market value of the benefit and how the fair market value of the benefit was determined.
- (Step 6) Within 45 days of receipt of the tax credit application, DSS determines tax credit eligibility and will notify the following parties:
- Taxpayer (notification will include the approved tax credit amount);
- Missouri Director of Revenue.
Note: DSS issues tax credits in the order applications are received.
How are tax credits redistributed?
- At least quarterly, DSS will review the cumulative amount of approved tax credits. If a maternity home fails to use all or some percentage of its apportioned tax credits during a predetermined period, DSS may redistribute unused tax credits to maternity homes that have used all or most of their apportionment. Redistribution during a fiscal year will ensure, to the maximum extent possible, that taxpayers can claim all available tax credits.
- DSS will notify maternity homes affected by the reapportionment of tax credits. DSS will allow a 30-day comment period on redistribution and consider planned future uses of the tax credit allocation. DSS decisions regarding reapportionment are final.
Important Maternity Home Tax Credit Links:
- Maternity Home Tax Credit Statute (RSMo 135.600)
- Form and Instructions to Apply to Become an Agency Benefiting from This Credit
- To Claim the Tax Credit use form MO-TC Missouri Department of Revenue.
- Maternity Home Tax Credit Form and Instructions
- Where Can I Donate?
- Regulations Governing the Processing and Award of Tax Credits
To learn more about maternity home eligibility, contact the Department of Social Services at 573-751-7533 (M-F, 8:00-5:00)
To learn more about claiming the tax credit, contact the Department of Revenue:
Phone: 573-522-6864 (for individual tax)
Phone: 573-751-4541 (for business tax)