Bill > SF3878

This bill establishes a framework for authorizing 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 is exempt from federal income tax, complies with U.S. Treasury rules for such organizations, maintains separate accounts for donations, awards scholarships to at least ten students, spends at least 90% of its income on scholarships, prioritizes returning students and siblings of current recipients, does not earmark funds for specific students, verifies household income and family size, and avoids conflicts of interest. 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 also clarifies that this legislation does not grant the Department of Education or school districts any additional control over nonpublic schools. Additionally, it amends state law to include a specific federal provision, Public Law 119-21, section 70411, within the definition of the Internal Revenue Code for tax purposes, with retroactive effect for federal changes.

Budget and Finance

https://www.revisor.mn.gov/bills/94/2026/0/SF/3878/