MS HB245

Creates the Mississippi Public School Relief Act establishing an income tax credit for taxpayers making voluntary cash contributions to school tuition organizations or qualified public schools.

Allows a tax credit of up to $500 for contributions to school tuition organizations (which must allocate at least 90% of revenue to educational scholarships or tuition grants) and up to $200 for contributions to qualified public schools, with unused credits carrying forward for five years.

Prohibits taxpayers from claiming both a tax credit and a deduction for the same contribution, and prevents credits when contributions are designated for direct benefit of the taxpayer's dependents.

Amends Section 37-7-301 to authorize school boards to accept voluntary cash contributions and grants from school tuition organizations, and amends Section 37-151-93 to allow such contributions to be designated for tuition payments of transfer students.

Effective January 1, 2010, with provisions declared non-severable, meaning if any part is invalidated, the entire act becomes invalid.