Senate Bill 2372 Summary

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

• Allows businesses to claim a tax credit of up to 75% of contributions to scholarship organizations or educational improvement organizations, with a maximum annual credit of $300,000 per business firm; increases to 80% if the business commits to contributing the same amount for two consecutive years.

• Sets a total aggregate cap of $92,000,000 annually in tax credits for fiscal years 2018-2019 through 2020-2021, with at least 75% directed to scholarship organizations and at least 25% to educational improvement organizations.

• Makes scholarships received by eligible students (those from households with income up to $60,000, adjusted annually) deductible as an adjustment to gross income under Mississippi income tax law.

• Establishes program administration requirements including certification of qualified organizations, application processes, reporting obligations, and prioritization of tax credit awards based on business firm categories and application submission dates.