House Bill 870

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR PAYMENTS MADE BY A TAXPAYER FOR TUITION REQUIRED FOR A CHILD TO ATTEND A NONPUBLIC SCHOOL; TO PROVIDE FOR THE AMOUNT OF THE TAX CREDIT; TO LIMIT THE AMOUNT OF THE TAX CREDIT THAT MAY BE CLAIMED IN A TAXABLE YEAR; TO PROVIDE THAT ANY TAX CREDIT CLAIMED BUT NOT USED IN A TAXABLE YEAR MAY BE CARRIED FORWARD FOR FIVE YEARS; TO AUTHORIZE AN INCOME TAX CREDIT FOR EXPENSES PAID BY A TAXPAYER NECESSARY FOR THE HOMESCHOOLING OF A CHILD; TO PROVIDE FOR THE AMOUNT OF THE TAX CREDIT; TO LIMIT THE AMOUNT OF THE TAX CREDIT THAT MAY BE CLAIMED IN A TAXABLE YEAR; TO PROVIDE THAT ANY TAX CREDIT CLAIMED BUT NOT USED IN A TAXABLE YEAR MAY BE CARRIED FORWARD FOR FIVE YEARS; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) (a) As used in this subsection, the following words and phrases shall have the meanings ascribed herein unless the context clearly indicates otherwise:

(i) "Tuition" means the:

1. Monthly, semester, annual or other term charge and all required fees imposed as a condition of enrollment in a nonpublic school;

2. Costs required for the purchase of school uniforms required by a nonpublic school for general day-to-day use;

3. Costs required for the purchase of textbooks, curricula and/or other instructional materials required by a nonpublic school; and

4. Costs required for the purchase of school supplies required by a nonpublic school.

(ii) "Nonpublic school" means and has the same definition as such term has in Section 37-13-91(2)(i).

(b) For a taxpayer who makes payments for tuition required for a child who is a dependent of the taxpayer to attend a nonpublic elementary or secondary school, there shall be allowed a credit against the taxes imposed by this chapter in the amount provided in this subsection. The tax credit authorized in this subsection shall be claimed for the taxable year in which the payments for tuition are made. The credit authorized in this subsection shall be equal to the amount of such payments made during a taxable year; however, the credit shall not exceed One Thousand Five Hundred Dollars ($1,500.00) per child for a taxable year. The aggregate amount of credits that may be claimed by a taxpayer under this subsection for a taxable year 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 the taxpayer under the state income tax laws, except credit for tax payments made by or on behalf of the taxpayer. Any tax credit claimed under this subsection but not used in a taxable year may be carried forward for five (5) years from the close of the tax year in which the payments for tuition were made.

(2) (a) A taxpayer who pays expenses necessary for the homeschooling of a child who is a dependent of the taxpayer shall be allowed a credit against the taxes imposed under this chapter in the amount provided in this subsection. The tax credit authorized in this subsection shall be claimed for the taxable year in which the expenses are paid. The tax credit authorized in this subsection shall be equal to the amount of such expenses paid by a taxpayer during a taxable year; however, the credit shall not exceed One Thousand Five Hundred Dollars ($1,500.00) per child for a taxable year. The aggregate amount of credits that may be claimed by a taxpayer under this subsection for a taxable year 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 the taxpayer under the state income tax laws, except credit for tax payments made by or on behalf of the taxpayer. Any tax credit claimed under this subsection but not used in a taxable year may be carried forward for five (5) years from the close of the tax year in which the expenses were paid.

(b) Expenses for which a credit may be claimed under this subsection include the costs of textbooks, school supplies, curricula, distance learning and/or other instructional materials and expenses necessary for the homeschooling of a child. For the purposes of this subsection, a child is "homeschooled" if the child is being educated by private teachers, parents, guardians or custodians in a legitimate home instruction program, as described in the Mississippi Compulsory School Attendance Law (Section 37-13-91).

SECTION 2. Section 1 of this act shall be codified as a new section in Chapter 7, Title 27, Mississippi Code of 1972.

SECTION 3. 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 4. This act shall take effect and be in force from and after January 1, 2022.