MN HF4692

Provides a tax credit equal to 70 percent of donations made to qualified foundations that fund K-12 scholarships, with 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).

Establishes $26,500,000 maximum statewide annual credit limit, with credits issued on first-come, first-served basis after taxpayers obtain credit certificates from the Department of Revenue.

Defines eligible students as Minnesota residents with household income not exceeding twice the reduced-price meal threshold or children with disabilities, who can receive qualified scholarships (tuition) or transportation scholarships capped at 70 percent of state average general education revenue per pupil.

Requires qualified foundations and public school foundations to be 501(c)(3) nonprofits, conduct criminal background checks, report student performance data disaggregated by category, spend donations within one calendar year, and limit administrative expenses to five percent of donations received.

Effective for taxable years beginning after December 31, 2022, and makes corresponding amendments to Minnesota income tax deduction provisions.