St. Paul, MN – Representative Matt Grossell (R-Clearbrook) is assisting students by backing legislation that would provide a tax credit for K-12 scholarship donations.
“We need incentives to get the community involved in helping to support these scholarships,” Grossell said. “This would help students and give the community a much-deserved tax credit. It’s a win-win.”
Eligible students would have to reside in Minnesota and reside in a household where the income is not more than two-times the standard used to qualify for a reduced-price meal under the National School Lunch Program.
As part of the bill, donors would be issued a tax credit equal 70% of the amount donated during the taxable year to the qualified foundation or public-school foundation.
The maximum annual credit is $21,000 for married joint filers for a one-year donation of $30,000; $10,500 for other individual filers for a one-year donation of $15,000. The maximum annual credit is $105,000 for corporate filers for a one-year donation of $150,000.
If passed, this bill would go into effect for taxable years after December 31, 2022.