SB 2852 Summary

• Establishes the Mississippi Educational Improvement Tax Credit (EITC) program administered by the Mississippi Development Authority to provide tax credits to businesses contributing to scholarship organizations and educational improvement organizations.

• Allows businesses to claim income tax credits of up to 75% of contributions to qualified scholarship or educational improvement organizations, or up to 80% if committing to the same contribution amount for two consecutive years, capped at $300,000 annually per business firm.

• Sets total aggregate tax credit availability at $92,000,000 annually for fiscal years 2016-2019, with at least 75% reserved for scholarship organizations and at least 25% for educational improvement organizations.

• Permits eligible low- and middle-income students (maximum household income of $50,000-$60,000, adjusted annually) to receive scholarships from qualified organizations and deduct scholarship amounts as an adjustment to gross income.

• Provides enhanced income thresholds and support factors for eligible students with disabilities, with maximum household income calculated using multipliers up to 2.993 depending on support level needed.