Bill > SF1554

This bill establishes a tax credit for parents or guardians whose children attend nonpublic schools in Minnesota. The credit is calculated by multiplying the number of qualifying students by the current state formula allowance for school funding. A qualifying student is defined as a child who receives full-time academic instruction in a nonpublic school, which includes any legal educational setting that meets state compulsory attendance requirements, but excludes public and charter schools. The credit is limited to the taxpayer's tax liability for the year, and only one taxpayer can claim the credit per student. In cases of divorced or separated parents, a noncustodial parent can claim the credit if they have been awarded tax benefits by a court or if the custodial parent provides a written declaration waiving their claim to the credit. The bill includes provisions to prevent the credit from being used to offset other tax liabilities or penalties, and it will take effect for taxable years beginning after December 31, 2024. The state tax commissioner is authorized to develop rules for implementing the credit, with restrictions on requiring excessive documentation from taxpayers.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1554&ssn=0&y=2025