Senate Bill 2575 Summary

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

• Grants businesses a tax credit of up to 75% of contributions to scholarship organizations (or up to 80% for two-year commitments), with a maximum annual credit of $300,000 per business firm.

• Limits total annual tax credits to $92,000,000, requiring at least 75% allocation to scholarship organizations and at least 25% to educational improvement organizations.

• Allows scholarship recipients who are eligible students (low- and middle-income families) to deduct scholarship amounts as an adjustment to gross income for Mississippi tax purposes.

• Establishes eligibility requirements based on household income ($60,000 maximum, subject to annual adjustment) and creates priority application periods for different business firm groups starting May 15 of each fiscal year.