MS SB2789

Establishes the "Tax Credit Scholarship Act" allowing taxpayers to claim a tax credit of up to 50% of their income tax liability for contributions to nonprofit scholarship organizations that provide scholarships to qualifying students.

Defines qualifying students as Mississippi residents aged 5-20 whose household income does not exceed 2.5 times the reduced-price lunch program threshold, plus siblings of scholarship recipients, foster children, students with IEPs/504 plans, and military dependents.

Requires nonpublic schools accepting scholarship students to comply with antidiscrimination and health/safety laws, conduct criminal background checks, provide educational progress assessments to parents, and maintain accreditation from specified organizations.

Imposes requirements on scholarship organizations including prohibition on owner/operator conflicts of interest, verification of student eligibility, limitation of administrative expenses to reasonable amounts, and mandatory financial and compliance reporting to the Department of Revenue.

Amends Mississippi tax code to exclude Freedom Scholarship amounts received to pay educational expenses from gross income, and directs the Department of Revenue to provide annual legislative reports on program participation and tax credit claims.