MN SF2578

Creates a tax time savings grant program administered by the Minnesota Commissioner of Revenue to fund nonprofits that integrate financial capability services into existing taxpayer assistance programs (VITA and TCE).

Eligible applicants must be 501(c)(3) nonprofits registered with the IRS as part of VITA or TCE programs and must dedicate at least one staff or volunteer position to coordinate financial services including account opening, tax refund deposits, and Series I Savings Bond purchases.

Financial capability services covered include account opening assistance, tax refund deposit help, credit counseling, financial coaching, matched savings programs, and federal retirement savings bonds or investment advisor referrals.

Prohibits applicants from receiving direct compensation or contingent funding from banks, credit unions, or financial services providers in exchange for offering their products or services to program participants.

Appropriates $400,000 in fiscal year 2017 for the tax time savings grant program (with base funding of $400,000 annually) and $400,000 for taxpayer assistance grants with a base of $800,000 annually after 2017; up to 5 percent of each appropriation may be used for administration.