MS HB1703

Creates the Tax Credit Scholarship Act allowing taxpayers to claim a tax credit of up to 50% of their income tax liability for contributions to qualified nonprofit scholarship organizations.

Establishes eligibility for scholarships for students ages 5-20 whose household income does not exceed two times the federal reduced-price lunch program threshold, who are Mississippi residents, and were not previously enrolled in nonpublic schools.

Requires nonpublic schools accepting scholarship students to comply with antidiscrimination laws, conduct criminal background checks on employees, maintain accreditation, and provide parents with educational progress assessments.

Limits scholarship organization administrative expenses to 10% of contributions, requires quarterly and annual reporting to the Department of Revenue, and mandates unused funds be transferred to the state General Revenue Fund.

Amends tax code to exclude Tax Credit Scholarship amounts received for educational expenses from gross income and requires annual legislative reporting on tax credits, participating schools, and scholarship organizations.