HB 1095 Summary

• Creates the Low-Income Student Scholarship Tax Credit Act allowing individuals and corporations to claim a tax credit of up to 50% of their state income tax liability for contributions to nonprofit scholarship organizations.

• Establishes eligibility for qualifying students aged 5-20 who are legal Mississippi residents and meet criteria including household income at 2.5 times the reduced-price lunch threshold, foster care status, special education needs, military family status, or sibling of scholarship recipient.

• Limits scholarship amounts to 80% of state per-pupil funding in the first year, adjusted annually for inflation in subsequent years, for use at nonpublic schools accepting students with tax credit scholarships.

• Requires nonpublic schools accepting scholarship students to comply with antidiscrimination laws, health and safety codes, conduct criminal background checks on employees, and allow parents to request student educational progress assessments.

• Establishes Department of Revenue oversight including annual verification of eligible scholarship organizations, quarterly reporting requirements, and annual legislative reports on program participation, contributions, and scholarships awarded; allows unused credits to carry forward five years.