St. Paul, MN – Representative Brian Johnson (R-Cambridge) is impacting Minnesota students by backing a piece of legislation that will better their education.
Through HF 4692, those who donate to K-12 scholarships would receive a tax credit.
“The community needs a way to become more involved in helping with a child’s education,” Johnson said. “This will serve as an incentive for the community to donate toward scholarships and help children. By providing a tax exemption for these donations, the community, and students both benefit.”
The tax exemption 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.
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