SF641 Summary

• Creates an "Equity and Opportunity in Education Tax Credit" allowing individual and corporate taxpayers an 80 percent credit against tax liability for donations to qualified foundations that provide scholarships and grants to eligible students.

• Eligible students must reside in Minnesota, have household income not exceeding 1.5 times the reduced-price meal threshold, and have attended public, nonpublic, or charter school or be starting school for the first time.

• Qualified scholarships are capped at 70 percent of the state average general education revenue per pupil unit and must be used for tuition at nonpublic schools, charter schools with at least 30 percent low-income students, or preschools serving ages 3-5.

• Qualified foundations must be 501(c)(3) nonprofit organizations that conduct background checks on employees and board members, maintain financial accountability through certified public accountant audits, and distribute donations within one calendar year of receipt.

• Unused credits may be carried forward for up to five succeeding taxable years; effective for taxable years beginning after December 31, 2010.