MN HF386

Creates an "Equity and Opportunity in Education Tax Credit" allowing individual and corporate taxpayers to claim a 70 percent credit for donations to qualified foundations that award scholarships to low-income and middle-income students for K-12 tuition, with a statewide maximum of $35,000,000 per year beginning in 2018.

Sets maximum annual credits at $21,000 for married joint filers ($30,000 donation), $10,500 for other individual filers ($15,000 donation), and $105,000 for corporate filers ($150,000 donation), with unused credits eligible for five-year carryover.

Restricts eligible students to Minnesota residents from households earning no more than twice the reduced-price meal standard under the National School Lunch Program who attend or are eligible to attend qualifying schools.

Requires qualified foundations to be 501(c)(3) nonprofits approved by the commissioner of revenue, maintain financial accountability through audited statements, conduct criminal background checks, and use up to five percent of donations for administrative expenses.

Extends the existing K-12 education credit to include tuition and transportation expenses for qualifying children in kindergarten through grade 12, effective for taxable years beginning after December 31, 2017.