SF 526

as introduced - 88th Legislature (2013 - 2014) Posted on 02/22/2013 11:49am

A bill for an act
relating to taxes; individual income; providing a credit for contributions to fund
scholarships for higher education; appropriating money; proposing coding for
new law in Minnesota Statutes, chapter 290.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [290.0693] HIGHER EDUCATION SCHOLARSHIP INCENTIVE
CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given.
new text end

new text begin (b) "Full time" has the meaning given in section 136A.101, subdivision 7a.
new text end

new text begin (c) "Institution" means a two-year or four-year postsecondary institution that is
located in Minnesota and is a public postsecondary institution or a private, nonprofit,
degree-granting college or university.
new text end

new text begin Subd. 2. new text end

new text begin Allocation of credit certificates. new text end

new text begin (a) By October 31 of the year preceding
each year for which credit certificates are available, institutions may apply to participate
in the credit program. The application must be submitted on a form prescribed by the
commissioner and must include data on the amount of charitable contributions for
scholarships received by the institutions in the previous calendar year. Each institution
that submits an application meeting the requirements provided by the commissioner is
eligible to participate.
new text end

new text begin (b) The commissioner must allocate the credit amount available for the year, as well as
any unused credit amounts from the previous year, to participating institutions as follows:
new text end

new text begin (1) 50 percent based on the distribution of full-time Minnesota resident students
among participating institutions; and
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new text begin (2) 50 percent based on the distribution of scholarship contributions to participating
institutions as reported on each institution's annual application.
new text end

new text begin (c) The commissioner must allocate $20,000,000 in credit certificates per year for
taxable years beginning after December 31, 2013, and before January 1, 2016. Any
portion of a taxable year's certificates that was allocated by the commissioner but not
assigned to a taxpayer by an institution is returned to the commissioner and does not
cancel. The commissioner must reallocate amounts returned in subsequent taxable years
under this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Assignment of credit certificates. new text end

new text begin Institutions may assign credit
certificates to individuals who make contributions to fund merit-based scholarships at the
institution. The amount of the credit certificate assigned to an individual may not exceed
50 percent of the amount contributed.
new text end

new text begin Subd. 4. new text end

new text begin Credit allowed; carryover. new text end

new text begin An individual is allowed a credit against
the tax imposed under this chapter for the taxable year and the amount indicated on the
certificate provided to the individual by an institution as provided under this section. If
the amount of the credit determined under this section for any taxable year exceeds the
liability for tax under this chapter, the excess is a higher education scholarship incentive
credit carryover to each of the ten succeeding taxable years. The entire amount of the
excess unused credit for the taxable year must be carried first to the earliest of the taxable
years to which the credit may be carried and then to each successive year to which
the credit may be carried. The amount of the unused credit that may be added under
this subdivision is limited to the individual's liability for tax less the higher education
scholarship incentive credit for the taxable year.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin $....... in fiscal year 2014 and $....... in fiscal year 2015 are
appropriated from the general fund to the commissioner for purposes of administering
the credit in this section. Amounts not used in fiscal year 2015 do not cancel but are
available through fiscal year 2016.
new text end