MS SB2695

Establishes the Tax Credit Scholarship Act allowing qualifying students aged 5-20 from households earning up to twice the federal reduced-price lunch threshold to receive scholarships from nonprofit scholarship organizations for nonpublic school expenses.

Creates a tax credit allowing individual and corporate taxpayers to claim up to 50% of their income tax liability for contributions to scholarship organizations, with unused credits carried forward up to 5 years.

Requires scholarship organizations to be 501(c)(3) nonprofits registered with the Secretary of State, maintain administrative expenses at 10% of contributions, and file quarterly and annual compliance reports with the Department of Revenue.

Mandates participating nonpublic schools comply with antidiscrimination and health/safety laws, conduct criminal background checks, provide educational progress assessments to parents, and maintain accreditation.

Excludes Tax Credit Scholarship amounts from gross income for state tax purposes and requires the Department of Revenue to publish annual reports to the Legislature on credit usage, participating schools, and scholarship statistics.