MN HF1894

Creates a tax credit equal to 70 percent of donations made to qualified foundations that award K-12 scholarships, with maximum annual credits of $21,000 for married joint filers ($30,000 donation), $10,500 for individual filers ($15,000 donation), and $105,000 for corporate filers ($150,000 donation).

Establishes $35,000,000 maximum statewide credit per taxable year, issued on first-come, first-served basis starting January 1 each year for taxpayers who receive credit certificates from the Commissioner of Revenue.

Targets donations to help low-income and middle-income families with household income up to twice the National School Lunch Program reduced-price meal threshold, or families with children with disabilities.

Qualified foundations must award scholarships to multiple schools without charging fees, conduct criminal background checks on employees and board members, use up to 5 percent of donations for administrative expenses, and report student performance data annually.

Effective for taxable years beginning after December 31, 2019, with credit carryover provisions allowing unused credits to be carried forward up to five subsequent taxable years.