MN SF256

Establishes an income tax credit equal to 70 percent of donations made to qualified foundations that award K-12 scholarships to low-income and middle-income students.

Sets maximum annual credits of $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).

Caps total statewide credit at $35,000,000 per taxable year beginning after December 31, 2017, distributed on first-come, first-served basis.

Requires qualified foundations to be 501(c)(3) nonprofits that award scholarships to eligible students (residing in Minnesota, from households earning up to twice the reduced-price meal income threshold) at nonpublic schools without restricting scholarships to one school.

Scholarships limited to 70 percent of state average general education revenue per pupil unit and must be used within one calendar year of receipt; allows foundations to use up to 5 percent of donations for administrative expenses.