Senate Bill 2947

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT IN THE AMOUNT OF THE UNREIMBURSED EDUCATIONAL EXPENDITURES MADE BY A TAXPAYER IN CONNECTION WITH ENROLLMENT, ATTENDANCE, OR PARTICIPATION OF THE TAXPAYER'S DEPENDENT CHILD IN A PRIVATE ELEMENTARY OR HIGH SCHOOL EDUCATION PROGRAM OR HOMESCHOOLING IN MISSISSIPPI; TO PROVIDE THAT THE AMOUNT OF SUCH CREDIT SHALL NOT EXCEED AN AMOUNT EQUAL TO THE STATE SHARE OF THE ADEQUATE EDUCATION PROGRAM PAYMENTS FOR EACH STUDENT IN AVERAGE DAILY ATTENDANCE AT THE SCHOOL DISTRICT IN WHICH THE DEPENDENT CHILD RESIDES; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) As used in this section:

(a) "Dependent child" means an individual who:

(i) Is eligible to receive a free elementary or high school education in a Mississippi public school;

(ii) Qualifies as a dependent (as defined in Section 152 of the Internal Revenue Code) of the taxpayer; and

(iii) Is the natural or adopted child or the taxpayer or, if custody of the child has been awarded in a court proceeding to someone other than the mother or father, the court-appointed guardian or custodian of the child.

(b) "Education expenditure" refers to any expenditures made in connection with enrollment, attendance, or participation of the taxpayer's dependent child in a private elementary or high school education program in Mississippi. The term includes tuition, fees, computer software, textbooks, workbooks, curricula, school supplies (other than personal computers), and other written materials used primarily for academic instruction or for academic tutoring, or both.

(c) "Private elementary or high school education program" means homeschooling or attendance at a private school in Mississippi that satisfies a child's obligation under Section 37-13-91 for compulsory attendance at a school. The term does not include the delivery of instructional service in a home setting to a dependent child who is enrolled in a public school or a charter school.

(2) (a) There shall be allowed a credit against the taxes imposed by this chapter the amount of unreimbursed educational expenditures made by a taxpayer for a dependent child during the calendar year 2017 and any calendar year thereafter; however, the amount of the credit shall not exceed an amount equal to the base student cost under the Mississippi Adequate Education Program for the school year ending during the calendar year.

(b) If the amount allowable as a credit exceeds the tax imposed by this chapter, the excess may be carried forward for three (3) succeeding tax years or the taxpayer may elect to receive a refund of the amount of such excess. Refund requests shall be submitted to the Department of Revenue on forms provided by the department. Refunds shall be made from current collections.

(3) In order to be eligible for the credit, a taxpayer shall provide such documentation of educational expenditures as the Department of Revenue may prescribe.

SECTION 2. This section 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 January 1, 2017.