Senate Bill 2205

AN ACT TO PROVIDE A STATE INCOME TAX CREDIT UP TO $500.00 FOR OUT-OF-POCKET CLASSROOM SUPPLY EXPENDITURES MADE BY PUBLIC SCHOOLTEACHERS; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) A credit shall be allowed to licensed public schoolteachers against the income tax imposed by the Mississippi Income Tax Act, as amended, Chapter 7, Title 27, Mississippi Code of 1972, for expenditures made by the teacher from his or her personal funds for classroom supplies, instructional materials or equipment to be used by students in a public school classroom. The amount of the credit shall be documented pursuant to regulations of the State Tax Commission for other authorized deductions or credits, and shall not exceed Five Hundred Dollars ($500.00) annually.

(2) To qualify for the credit authorized in this section, the teacher shall (a) be employed by the school district in which the classroom supplies were purchased and used; (b) be licensed by the State Board of Education; and (c) be assigned to an instruction area of work as defined by the State Department of Education.

(3) To qualify for the credit authorized in this section, the expenditure shall be an approved expenditure pursuant to the local school spending plan that supports the overall goals of the school which includes the type, quantity and quality of such supplies, instructional materials or equipment, and which has been approved by the school principal. If local or state funds are available for the same expenditure, the expenditure shall not be eligible for the credit under this section.

(4) The credits allowed in this section shall be effective for taxable years beginning January 1, 2005.

(5) The provisions of this section shall be codified in Chapter 7, Title 27, Mississippi Code of 1972.

SECTION 2. This act shall take effect and be in force from and after January 1, 2005.