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S.F. No. 526 - Higher Education Scholarship Incentive Credit
 
Author: Senator Kari Dziedzic
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: March 19, 2013



 

This bill establishes an income tax credit program for contributions to qualifying higher education institutions for tax years 2014 and 2015. 

Section 1, subdivision 1.  [Definitions]  Defines the following terms:

“Full-time” means enrollment in a minimum of 15 credits per quarter or semester, or the equivalent.

“Institution” means a two-year or four-year postsecondary institution located in Minnesota whether a public postsecondary institution or a private, nonprofit degree granting university.

Subdivision 2.  [Allocation of credit certificates] States that institutions’ applications to participate in the credit program must be made by October 31 of the preceding year for which credits are made available.  An application must be made on a form provided by the Commissioner and must include data on the amount of charitable contributions received by the institution in the previous year. 

Requires the Commissioner to allocate tax credit certificates available for the year, including any unused credits from the previous years.  The Commissioner must allocate credit certificates to all participating institutions using the following formula:

  • 50 percent based on the distribution of full-time Minnesota resident students relative to all participating institutions; and
  • 50 percent based on the distribution of scholarship contributions relative to all participating institutions.

The total amount of credit certificates per year may not exceed $20 million per year for tax years 2014 and 2015.  Unused credits may be reallocated to the next taxable year. 

Subdivision 3.  [Assignment of credit certificates] Authorizes institutions to assign credit certificates to individuals who make qualifying contributions.  The amount of the credit certificate may not exceed 50 percent of the contribution amount.

Subdivision 4.  [Credit allowed; carryover]  Authorizes individuals a tax credit in the amount provided on the credit certificate.  The credit is not refundable, but may be carried over to each of the next ten succeeding tax years. 

Subdivision 5.  [Appropriation]  Provides an appropriation to the Commissioner of Revenue to administer the credit.  The appropriation amounts are left blank.  Any amount not used in fiscal year 2015 is available through 2016. 

NBP:dv

 

 
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