MN HF1369

Establishes an 80 percent tax credit for individual and corporate taxpayers who donate to qualified foundations that provide scholarships to low-income students or grants to charter schools and preschools in Minnesota.

Eligible students must reside in Minnesota, have household income not exceeding twice the reduced-price meal threshold, and either attend or previously attended a Minnesota 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 can be used for tuition at nonprofit nonpublic schools, charter schools with at least 30 percent low-income students, or public/nonpublic preschools for ages 3-5.

Establishes a statewide cap of $80,000,000 in tax credits available on a first-come, first-served basis and allows unused credits to carry forward for up to five subsequent tax years.

Requires qualified foundations to obtain 501(c)(3) status, conduct criminal background checks, submit audited financial reports, use donations within one calendar year, and limit administrative expenses to seven percent of donations received.