News Release: Heinrich Bill is Win-Win for Students, Community
St. Paul, MN – Students and schools have the chance to see more dollars pouring into their scholarship funds thanks to new legislation brought by Representative John Heinrich (R-Anoka).
The bill would allow for income tax credits for donations to K-12 scholarships.
“A tax credit can serve as an incentive for the community to provide scholarships for our children,” Heinrich said. “People want to know their donations are used for a worthy cause. What could be more worthy than the future and education of our children?”
The tax credit would be given to eligible programs that provide scholarships to students who need it the most. Eligible students would have to reside in Minnesota and live in a home where the annual household income is not more than two-times the income standard used to qualify for a reduced-price meal under the National School Lunch Program.
Donors would be issued a tax credit equal to 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. Representative Heinrich has been hard at work on legislation to provide tax credits for scholarship programs since he took office in 2019.
###