House Bill 232

AN ACT TO PROVIDE AN INCOME TAX CREDIT FOR TAXPAYERS WHO PAY TUITION TO A NONPUBLIC SCHOOL; TO PROVIDE AN INCOME TAX CREDIT FOR TAXPAYERS THAT INCUR COSTS FOR HOME SCHOOL PURPOSES; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) For any taxpayer who pays tuition to a nonpublic school, a credit against the taxes imposed by this chapter shall be allowed in the amount provided in subsection (2) of this section. For the purposes of this section:

(a) "Tuition" means the monthly, semester, annual or other term charge and all required fees imposed as a condition of enrollment in a primary or secondary nonpublic school; and

(b) "Nonpublic school" means an institution for the teaching of children in the primary or secondary, or both, grades, consisting of a physical plant (whether owned or leased), instructional staff and students, and which is in session each school year and maintains educational standards equivalent to the standards established by the State Department of Education for the state schools as outlined in the Approval Requirements of the State Board of Education for Nonpublic Schools. The term "nonpublic school" includes, but is not necessarily limited to, private, church and parochial schools.

(2) The income tax credit provided in subsection (1) of this section shall be equal to one-third (1/3) of the amount of the tuition paid to a nonpublic school during the taxable year, not to exceed the amount of income tax due the State of Mississippi from the taxpayer for the taxable year reduced by the sum of all other credits allowable to such taxpayer under the state income tax laws, except credit for tax payments made by or on behalf of the taxpayer. In the case of married individuals filing separate returns, each person may claim an amount not to exceed one-half (1/2) of the tax credit which would have been allowed for a joint return. Any unused portion of the credit may be carried forward for the next five (5) succeeding tax years.

(3) Any amount of tuition payments made by a taxpayer which is applied toward the credit provided in this section may not be used as a deduction by the taxpayer for state income tax purposes.

SECTION 2. (1) For any taxpayer who is a parent, guardian or custodian of a home school student, a credit against the taxes imposed by this chapter shall be allowed in the amount provided in subsection (2) of this section. For the purposes of this section, the term "home school student" means a compulsory-school-age child taught by private teachers, parents, guardians or custodians in a legitimate home instruction program as defined under the Mississippi Compulsory School Attendance Law (Section 37-13-91).

(2) The income tax credit provided in subsection (1) of this section shall be equal to one-third (1/3) of the amount of the costs incurred by the taxpayer for educational supplies and materials necessary for the home school student to participate in a home instruction program during the taxable year, not to exceed the amount of income tax due the State of Mississippi from the taxpayer for the taxable year reduced by the sum of all other credits allowable to such taxpayer under the state income tax laws, except credit for tax payments made by or on behalf of the taxpayer. In the case of married individuals filing separate returns, each person may claim an amount not to exceed one-half (1/2) of the tax credit which would have been allowed for a joint return. Any unused portion of the credit may be carried forward for the next five (5) succeeding tax years.

(3) Any amount of costs incurred by a taxpayer for such purposes which is applied toward the credit provided in this section may not be used as a deduction by the taxpayer for state income tax purposes.

SECTION 3. Sections 1 and 2 of this act shall be codified as a separate section in Chapter 7, Title 27, Mississippi Code of 1972.

SECTION 4. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.

SECTION 5. This act shall take effect and be in force from and after July 1, 2005.