H.F. 308 Summary

• Creates an "Equity and Opportunity in Education" tax credit allowing individual and corporate taxpayers to receive a credit equal to 70 percent of donations to qualified foundations and qualified public school foundations that fund K-12 scholarships and transportation assistance.

• Maximum annual credit limits 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 carried forward up to five years.

• Eligible students must reside in Minnesota, have household income not exceeding two times the reduced-price school lunch threshold or have a disability, and meet prior school enrollment or age requirements.

• Qualified scholarships capped at 70 percent of state average general education revenue per pupil unit; qualified foundations must conduct criminal background checks, obtain audited financial statements, report student test performance, and use donations within one year of receipt.

• Statewide credit limit of $26,500,000 per taxable year; credits issued on first-come, first-served basis beginning January 1 of each year; effective for taxable years beginning after December 31, 2021.