MS HB1155

Establishes the Low-Income Student Scholarship and Family Tax Credit Act, allowing corporations to claim tax credits up to 50% of tax liability and individuals to claim credits up to 50% of state income tax liability for contributions to nonprofit scholarship organizations or qualifying educational expenses.

Defines eligible students as those ages 5-20 who are Mississippi residents with household income not exceeding 2.5 times the federal reduced-price lunch threshold, plus siblings of scholarship recipients, foster children, students requiring special education plans, and dependents of veterans or active military.

Limits individual scholarship value to 80% of state per-pupil funding in year one, adjusted annually for inflation thereafter, with unused tax credits carrying forward for five years.

Requires participating nonpublic schools to conduct background checks on employees, comply with antidiscrimination and health/safety laws, submit annual financial audits, and demonstrate financial viability if receiving donations of $50,000 or more annually.

Mandates nonprofit scholarship organizations maintain separate accounts, limit administrative expenses to 10% for first three years then 3% thereafter, expend 90% of contributions on scholarships annually, and submit annual compliance reports to the Department of Revenue.

Requires schools to provide parents and scholarship organizations annual educational progress assessments and allows parents to request state or nationally recognized testing in math and language arts.

Sunsets the program on July 1, 2022, with implementation effective July 1, 2012.