House Bill 354 Summary

• Creates the Mississippi Public School Relief Act to provide income tax credits 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 annual revenue to educational scholarships or tuition grants) and up to $200 for contributions to qualified public schools, with unused credits carried forward for five years.

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

• Amends Section 37-7-301 to authorize school boards to accept voluntary cash contributions and assistance from school tuition organizations for transfer student tuition payments.

• Effective January 1, 2013, with provisions declaring the act nonseverable (entire act is invalid if any provision is found invalid).