Bill > HF3491

This bill establishes scholarship-granting organizations in Minnesota, allowing the state to participate in a federal tax credit program. A scholarship-granting organization is defined as a nonprofit corporation that meets specific criteria, including being exempt from federal income tax, complying with U.S. Treasury rules, maintaining separate accounts for donations, awarding scholarships to at least ten students, spending at least 90% of its income on scholarships, prioritizing returning students and siblings of recipients, not earmarking funds for specific students, verifying household income and family size, and avoiding self-dealing. These organizations must annually notify the Department of Education of their compliance, and the department will maintain a public list of eligible organizations on its website. The bill clarifies that this legislation does not grant the Department of Education or school districts any additional control over nonpublic schools or students. Additionally, the bill amends existing law to include a specific federal provision, section 70411 of Public Law 119-21, within the definition of the Internal Revenue Code for Minnesota tax purposes, with retroactive effect for federal changes.

Budget and Finance

https://www.revisor.mn.gov/bills/94/2026/0/HF/3491/