Lawmakers approve tax credits for contributions to rural Mississippi hospitals

• State Senator Lane Taylor believes the bill could help struggling rural hospitals as many are facing financial hardships.

Rural hospitals could see donations coming their way after the Mississippi Senate passed a conference report Monday morning, giving tax breaks to donors.

The bill, which also passed the House of Representative, now heads to the desk of Governor Tate Reeves (R).

State Senator Lane Taylor (R), the author of SB 3110, told the Senate Monday that the conference report addressed concerns expressed by lawmakers. He said the agreed upon language “will better serve the purpose of the bill.”

“A lot of the concerns we addressed still pertain to rural hospitals that it was originally focused on,” he added.

The measure provides tax credits against income or ad valorem taxes for voluntary cash contributions to rural hospitals by individuals or other entities including a corporation, limited liability company, partnership or sole proprietorship.

The amended language in the bill sought to ensure rural hospitals are reimbursed by Mississippi counties. A four-year repealer is also included, meaning the Legislature will reexamine the bill and make corrections, if needed, at that time.

During questioning, State Senator Angela Turner-Ford (D) asked if there were caps for the tax credits. Taylor noted that the amount of credits that may be allocated for voluntary cash contributions to any single eligible hospital during a calendar year is not to exceed $100,000.

Turner-Ford was the only vote against the conference report.

In an earlier interview with Magnolia Tribune, Taylor said, “Many of our rural hospitals don’t have a foundation where the public can donate to.” The senator believes the bill could help struggling rural hospitals as many are facing financial hardships and are at risk of closure.

Under the bill, a rural hospital is defined as one with 49 or fewer beds and an emergency department open 24 hours a day, 7 days a week.

The bill is also an economic development bill, said Taylor, who represents a rural district. When businesses are exploring relocating to his district, one question that is always asked is about hospitals, he said.

“Hospitals are important to our communities,” said Taylor.