HB 1606 Summary

• Creates a tax credit allowing taxpayers to contribute to nonprofit scholarship organizations and claim a credit against income tax liability of up to 50% of their tax liability, with unused credits carried forward for five years.

• Establishes eligibility for "Freedom Scholarships" for students ages 5-20 whose household income does not exceed 1.5 times the federal reduced-price lunch threshold, plus students who are siblings of scholarship recipients, in foster care, have special education needs, or are dependents of veterans or active military.

• Requires participating nonpublic schools to comply with state and federal antidiscrimination laws, meet health and safety codes, conduct criminal background checks, provide annual educational progress assessments, and be accredited by specified organizations.

• Prohibits scholarship organizations from having owners who also own participating schools, restricts scholarship reservations for single schools, limits administrative expenses, and requires annual financial reporting and quarterly compliance reports to the Department of Revenue.

• Amends Section 27-7-15 of Mississippi Code to exclude Freedom Scholarship amounts received for educational expenses from gross income for tax purposes, effective January 1, 2015.