Senate Bill 2896

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR CONTRIBUTIONS MADE BY A CORPORATION TO SCHOLARSHIP FUNDS BY SCHOOLS AND INSTITUTIONS OF HIGHER EDUCATION; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) For purposes of this section:

(a) "School" means a public or private school teaching children in the primary or secondary grades that is accredited by the State Department of Education.

(b) "Institution of higher education" means a public or private university, college or community/junior college that provides an education beyond the high school level accredited by an accrediting body recognized by the U.S. Department of Education.

(2) Except as otherwise provided in this section, there shall be allowed as a credit against the taxes imposed by this chapter, an amount equal to the monetary contributions made by a corporation to scholarship funds established by a school or institution of higher education, no part of the net earnings of which inure to the benefit of any private stockholder or individual.

(3) The income tax credit authorized by this section shall not 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. Any unused portion of the credit may be carried forward for the next five (5) succeeding tax years.

(4) 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. Section 1 of this act shall be codified in Chapter 7, Title 27, Mississippi Code of 1972.

SECTION 3. This act shall take effect and be in force from and after July 1, 2007.