House Bill 1646 - Tax Credit Scholarship Act

• Creates a tax credit scholarship program allowing qualifying students (ages 5-20) from households earning up to twice the federal free/reduced lunch income threshold to receive scholarships from nonprofit scholarship organizations for nonpublic school expenses.

• Provides taxpayers a tax credit up to 50% of their income tax liability for contributions to eligible scholarship organizations, with unused credits carrying forward up to 5 years.

• Requires scholarship organizations to be 501(c)(3) nonprofits, limit administrative expenses to 10% of contributions, and submit quarterly and annual financial reports to the Department of Revenue.

• Nonpublic schools accepting scholarship students must be accredited, comply with antidiscrimination and health/safety laws, conduct criminal background checks on employees, and provide educational progress assessments to parents upon request.

• Excludes Tax Credit Scholarship amounts received by students from gross income for Mississippi tax purposes, effective January 1, 2018.