HB 143 Summary

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

• Allows a tax credit of up to $500 per year for contributions to school tuition organizations (charities allocating 90% of revenue to educational scholarships), and up to $200 per year for contributions to qualified public schools.

• Permits unused tax credits to be carried forward for five succeeding tax years and prohibits claiming both a tax credit and a deduction for the same contribution.

• Prohibits taxpayers from claiming the credit if they designate their contribution for the direct benefit of their own dependent and amends school transfer provisions to allow contributions to be designated for tuition payments of transfer students.

• Takes effect January 1, 2011.