H.F. 801 Summary

• Creates an 80 percent tax credit for individual and corporate taxpayers who donate to qualified foundations that provide scholarships and grants to eligible students in nonpublic schools, charter schools, and preschools.

• Establishes eligibility requirements for students based on Minnesota residency and household income not exceeding twice the reduced-price meal threshold under the National School Lunch Program.

• Caps qualified scholarships at 70 percent of state average general education revenue per pupil unit and limits total statewide credit availability to $80,000,000 on a first-come, first-served basis.

• Imposes requirements on qualified foundations including 501(c)(3) tax-exempt status, criminal background checks for employees and board members, certified public accountant audits, and use of donations within one calendar year of receipt.

• Effective for taxable years beginning after December 31, 2017; also amends tax code sections 290.0131 and 290.0133 to treat donations to qualified foundations as tax additions.