MN HF1059

Establishes an "Equity and Opportunity in Education Tax Credit" allowing individual and corporate taxpayers to claim a credit equal to 80 percent of donations made to qualified foundations that provide scholarships or grants to eligible students.

Provides maximum annual credits of $20,000 for married joint filers, $10,000 for other individual filers, and $100,000 for corporate filers, with unused credits carrying forward up to five years.

Defines eligible students as Minnesota residents from households earning no more than 1.5 times the reduced-price meal income threshold who attend or plan to attend public, nonpublic, charter, or preschool institutions.

Requires qualified foundations to be 501(c)(3) nonprofits that conduct criminal background checks on employees and board members, maintain financial accountability through certified audits, and use at least 93 percent of donations for scholarships or grants within one year.

Amends Minnesota tax code to allow taxpayers to deduct charitable contributions to qualified foundations for which they receive this tax credit, effective for taxable years beginning after December 31, 2010.