MN SF13

Allows individual and corporate taxpayers to claim a tax credit equal to 70 percent of donations made to qualified foundations and public school foundations that fund K-12 scholarships, transportation scholarships, and grants to charter schools.

Maximum annual tax credits are $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 carrying forward up to five years.

Establishes statewide annual credit cap of $26,500,000 per taxable year, distributed on first-come, first-served basis to taxpayers who obtain credit certificates from the commissioner of revenue.

Requires eligible students to have household income not exceeding twice the National School Lunch Program reduced-price meal threshold or be children with disabilities, and must attend qualified schools that are nonprofit, non-discriminatory, and administer standardized testing with public reporting of results.

Qualified foundations must conduct criminal background checks, use donations within one calendar year for scholarships and grants, allow up to 5 percent for administrative expenses, and provide annual financial reporting verified by certified public accountants; effective for taxable years beginning after December 31, 2020.