SB 2173 Summary

• Establishes an Educational Improvement Tax Credit (EITC) program administered by the Mississippi Development Authority to provide financial assistance to low- and middle-income families for educational options through tax credits to businesses making contributions.

• Authorizes income tax credits up to 75% of contributions (or 80% with a two-year commitment) to scholarship organizations or educational improvement organizations, capped at $300,000 annually per business firm.

• Sets total aggregate tax credits at $92,000,000 annually for fiscal years 2019-2022, with at least 75% dedicated to scholarship organizations and at least 25% to educational improvement organizations.

• Defines eligible students as school-age children from households with maximum annual income of $60,000 (plus income allowance adjustments of $10,000-$12,000 per dependent); students with disabilities qualify for higher income thresholds based on support level factors.

• Makes scholarships received by eligible students deductible as an adjustment to gross income under Mississippi's Income Tax Law.