MS HB634

Creates the "Tax Credit Scholarship Act" allowing qualifying students (ages 5-20, household income up to 2x reduced price lunch threshold) to receive scholarships from nonprofit scholarship organizations to cover nonpublic school educational expenses.

Provides taxpayers a tax credit of up to 50% of their income tax liability for contributions to eligible scholarship organizations, with unused credits carried forward for 5 years; taxpayers cannot claim credit if they or their dependents receive a scholarship.

Requires nonpublic schools accepting scholarship students to comply with antidiscrimination laws, conduct criminal background checks on employees, provide educational progress assessments to parents, and be accredited by state or nationally recognized entities.

Establishes requirements for scholarship organizations including 501(c)(3) status, registration with Secretary of State, limit of 10% administrative expenses, and quarterly reporting to Department of Revenue on contributions and scholarship awards.

Amends Section 27-7-15 of Mississippi Code to exclude amounts received as Tax Credit Scholarships from gross income; effective January 1, 2019.