Scholarship Tax Credit will be big news for Mississippi
A new federal scholarship tax credit will let Mississippi taxpayers redirect up to $1,700 of their federal income taxes each year to organizations that fund scholarships at local schools — and Mississippi is among the states signed up to participate.
The program, created in the One Big Beautiful Bill Act signed into law on July 4, 2025, takes effect in tax year 2027. It provides a dollar-for-dollar federal tax credit of up to $1,700 per taxpayer for donations to approved Scholarship Granting Organizations, or SGOs. The SGOs use those donations to fund scholarships for eligible K-12 students whose family income falls below 300 percent of the area median income.
Governor Tate Reeves opted Mississippi into the program in January, and according to his office, the Office of the Governor will designate which organizations qualify as SGOs in the coming months. The IRS reports more than half the states have signed up to participate.
Douglas Carswell, president and CEO of the Mississippi Center for Public Policy, says the credit could channel tens of millions of dollars into Mississippi schools and predicts “a flurry of activity to set up SGOs.” “Choosing a strong slate of SGOs could prove to be one of the most consequential decisions of Gov Reeves’ entire time in office,” Carswell said, pointing to dozens of non-government schools across the state — from Delta Streets Academy in Greenwood to Redeemer’s and Vineyard — that could benefit.
Keep up to date about the program by clicking here to see this purpose built Tax Credit Scholarship information hub. This plain-English guide to the tax credit, with a downloadable fact sheet, allows schools and families to see their options at a glance.