Pregnancy Resource Center Tax Credit
The Pregnancy Resource Center Tax Credit has been reauthorized effective March 29, 2013.
This legislation prohibits the assignment or transfer of Pregnancy Resource Center Tax Credits for contributions made on or after January 1, 2013.
What is the Pregnancy Resource Center Tax Credit?
By contributing to a qualified pregnancy resource center, Missouri taxpayers:
- Help fund services for women with unplanned or crisis pregnancies; and,
- Can earn a state tax credit.
What is a qualified pregnancy resource center?
Pregnancy Resource Centers
A pregnancy resource center is a tax-exempt, non-residential facility located in Missouri. These centers assist women with unplanned or crisis pregnancies and encourage women to carry their pregnancies to term by offering pregnancy testing and counseling with emotional and material support.
- Pregnancy resource centers provide cost-free, direct client services at the facility, as opposed to merely providing counseling or referral services by telephone.
- They do not perform childbirths or perform, induce or refer women for abortions.
- All medical services are provided in accordance with Missouri statute.
How does pregnancy resource center become a qualified agency?
To qualify, each year the pregnancy resource center submits:
- A completed Application for Agency Eligibility Verification 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 facility capacity and number of people served annually.
Where are qualified pregnancy resource centers located?
The link below lists where qualified resource centers for the current state fiscal year are 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.
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 for four subsequent years.
How does the credit work?
- (Step 1) Annually, pregnancy resource centers 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 pregnancy resource centers of their eligibility and equally apportions the total available tax credits among the eligible centers. These credits are effective beginning July 1 of each state fiscal year. The amount of credits available cannot exceed $2.5 million in a state fiscal year (July 1 through June 30).
(Step 3) If determined eligible by DSS, the pregnancy resource center may begin receiving contributions eligible for the tax credit beginning July 1. Note: Centers are permitted to decline a contribution from a taxpayer.
Annually, DSS publishes a list of qualified pregnancy resource centers which are eligible for the Pregnancy Resource Center 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: Pregnancy Resource Center Tax Credit Program
PO Box 863
Jefferson City, MO 65102-0863
If a pregnancy resource center 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 pregnancy resource center. 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 pregnancy resource center and the taxpayer must complete their portion of the Pregnancy Resource Center Tax Credit Application. Applications and supporting documentation must be submitted to DSS by the qualified center 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 pregnancy resource center; name, address and telephone number of the contributor; amount and date the contribution was received; and, signature of a representative of the pregnancy resource center 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 pregnancy resource center including the same information required of a cash donation).
- For a contribtion made by credit card, a legible transaction receipt with the name and address of the pregnancy resource center; contributor’s name, address and telephone number; amount and date the contribution was received; and, signature of a representative of the pregnancy resource center 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 pregnancy resource center; contributor’s name, address and telephone number; amount and date the contribution was received; and, signature of a representative of the pregnancy resource center 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 $25,000. Commercial, vacant or residential property having a value of $25,000 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. Note: Donations of furniture, appliances, clothing, etc., are not considered qualifying contributions eligible for the Pregnancy Resource Center Tax Credit.
(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.
Once the tax credit application has been received by DSS and verification of the appropriate documentation has been determined, DSS will verify with the Department of Revenue any outstanding balances due from the donor’s prior year’s state tax liability. If a balance due is outstanding, the amount of tax credit issued will be reduced by that amount.
How are tax credits redistributed?
- At least quarterly, DSS will review the cumulative amount of approved tax credits. If a pregnancy resource center fails to use all or some percentage of its apportioned tax credits during a predetermined period, DSS may redistribute unused tax credits to pregnancy resource centers 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 pregnancy resource centers 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 Pregnancy Resource Center Tax Credit Links:
- Pregnancy Resource Center Tax Credit Statute (RSMo 135.630)
- Pregnancy Resource Center Tax Credit Regulation (13 CSR 35-100.020)
- Pregnancy Resource Center Tax Credit Application
- Addresses for Qualified Pregnancy Resource Centers
- To Claim the Tax Credit use form MO-TC Missouri Department of Revenue
- To Learn More About Claiming the Tax Credit Contact Department of Revenue, E-mail: firstname.lastname@example.org
- Form and Instructions to Apply to Become an Agency Benefiting from this Credit.
- Pregnancy Resource Centers wanting to learn more should contact Department of Social Services at 573-751-7533 (M-F, 8:00-5:00)