S.F. No. 4474 Summary

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

• Maximum annual credits are $21,000 for married joint filers (on $30,000 donation), $10,500 for other individual filers (on $15,000 donation), and $105,000 for corporate filers (on $150,000 donation), with unused credits carried forward up to five years.

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

• Qualified scholarships and transportation scholarships are capped at 70 percent of state average general education revenue per pupil unit and cannot exceed $30,000 or $15,000 respectively for individual donors.

• Establishes statewide annual credit cap of $26,500,000 and requires qualified foundations to undergo commissioner approval, conduct background checks, provide audited financial statements, and report scholarship awards and student performance data annually.