Bill Text: MN SF526 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Higher education scholarship incentive income tax credit
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2013-02-21 - Author added Wiger [SF526 Detail]
Download: Minnesota-2013-SF526-Introduced.html
1.2relating to taxes; individual income; providing a credit for contributions to fund
1.3scholarships for higher education; appropriating money;proposing coding for
1.4new law in Minnesota Statutes, chapter 290.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [290.0693] HIGHER EDUCATION SCHOLARSHIP INCENTIVE
1.7CREDIT.
1.8 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.9have the meanings given.
1.10(b) "Full time" has the meaning given in section 136A.101, subdivision 7a.
1.11(c) "Institution" means a two-year or four-year postsecondary institution that is
1.12located in Minnesota and is a public postsecondary institution or a private, nonprofit,
1.13degree-granting college or university.
1.14 Subd. 2. Allocation of credit certificates. (a) By October 31 of the year preceding
1.15each year for which credit certificates are available, institutions may apply to participate
1.16in the credit program. The application must be submitted on a form prescribed by the
1.17commissioner and must include data on the amount of charitable contributions for
1.18scholarships received by the institutions in the previous calendar year. Each institution
1.19that submits an application meeting the requirements provided by the commissioner is
1.20eligible to participate.
1.21(b) The commissioner must allocate the credit amount available for the year, as well as
1.22any unused credit amounts from the previous year, to participating institutions as follows:
1.23(1) 50 percent based on the distribution of full-time Minnesota resident students
1.24among participating institutions; and
2.1(2) 50 percent based on the distribution of scholarship contributions to participating
2.2institutions as reported on each institution's annual application.
2.3(c) The commissioner must allocate $20,000,000 in credit certificates per year for
2.4taxable years beginning after December 31, 2013, and before January 1, 2016. Any
2.5portion of a taxable year's certificates that was allocated by the commissioner but not
2.6assigned to a taxpayer by an institution is returned to the commissioner and does not
2.7cancel. The commissioner must reallocate amounts returned in subsequent taxable years
2.8under this subdivision.
2.9 Subd. 3. Assignment of credit certificates. Institutions may assign credit
2.10certificates to individuals who make contributions to fund merit-based scholarships at the
2.11institution. The amount of the credit certificate assigned to an individual may not exceed
2.1250 percent of the amount contributed.
2.13 Subd. 4. Credit allowed; carryover. An individual is allowed a credit against
2.14the tax imposed under this chapter for the taxable year and the amount indicated on the
2.15certificate provided to the individual by an institution as provided under this section. If
2.16the amount of the credit determined under this section for any taxable year exceeds the
2.17liability for tax under this chapter, the excess is a higher education scholarship incentive
2.18credit carryover to each of the ten succeeding taxable years. The entire amount of the
2.19excess unused credit for the taxable year must be carried first to the earliest of the taxable
2.20years to which the credit may be carried and then to each successive year to which
2.21the credit may be carried. The amount of the unused credit that may be added under
2.22this subdivision is limited to the individual's liability for tax less the higher education
2.23scholarship incentive credit for the taxable year.
2.24 Subd. 5. Appropriation. $....... in fiscal year 2014 and $....... in fiscal year 2015 are
2.25appropriated from the general fund to the commissioner for purposes of administering
2.26the credit in this section. Amounts not used in fiscal year 2015 do not cancel but are
2.27available through fiscal year 2016.
1.3scholarships for higher education; appropriating money;proposing coding for
1.4new law in Minnesota Statutes, chapter 290.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [290.0693] HIGHER EDUCATION SCHOLARSHIP INCENTIVE
1.7CREDIT.
1.8 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.9have the meanings given.
1.10(b) "Full time" has the meaning given in section 136A.101, subdivision 7a.
1.11(c) "Institution" means a two-year or four-year postsecondary institution that is
1.12located in Minnesota and is a public postsecondary institution or a private, nonprofit,
1.13degree-granting college or university.
1.14 Subd. 2. Allocation of credit certificates. (a) By October 31 of the year preceding
1.15each year for which credit certificates are available, institutions may apply to participate
1.16in the credit program. The application must be submitted on a form prescribed by the
1.17commissioner and must include data on the amount of charitable contributions for
1.18scholarships received by the institutions in the previous calendar year. Each institution
1.19that submits an application meeting the requirements provided by the commissioner is
1.20eligible to participate.
1.21(b) The commissioner must allocate the credit amount available for the year, as well as
1.22any unused credit amounts from the previous year, to participating institutions as follows:
1.23(1) 50 percent based on the distribution of full-time Minnesota resident students
1.24among participating institutions; and
2.1(2) 50 percent based on the distribution of scholarship contributions to participating
2.2institutions as reported on each institution's annual application.
2.3(c) The commissioner must allocate $20,000,000 in credit certificates per year for
2.4taxable years beginning after December 31, 2013, and before January 1, 2016. Any
2.5portion of a taxable year's certificates that was allocated by the commissioner but not
2.6assigned to a taxpayer by an institution is returned to the commissioner and does not
2.7cancel. The commissioner must reallocate amounts returned in subsequent taxable years
2.8under this subdivision.
2.9 Subd. 3. Assignment of credit certificates. Institutions may assign credit
2.10certificates to individuals who make contributions to fund merit-based scholarships at the
2.11institution. The amount of the credit certificate assigned to an individual may not exceed
2.1250 percent of the amount contributed.
2.13 Subd. 4. Credit allowed; carryover. An individual is allowed a credit against
2.14the tax imposed under this chapter for the taxable year and the amount indicated on the
2.15certificate provided to the individual by an institution as provided under this section. If
2.16the amount of the credit determined under this section for any taxable year exceeds the
2.17liability for tax under this chapter, the excess is a higher education scholarship incentive
2.18credit carryover to each of the ten succeeding taxable years. The entire amount of the
2.19excess unused credit for the taxable year must be carried first to the earliest of the taxable
2.20years to which the credit may be carried and then to each successive year to which
2.21the credit may be carried. The amount of the unused credit that may be added under
2.22this subdivision is limited to the individual's liability for tax less the higher education
2.23scholarship incentive credit for the taxable year.
2.24 Subd. 5. Appropriation. $....... in fiscal year 2014 and $....... in fiscal year 2015 are
2.25appropriated from the general fund to the commissioner for purposes of administering
2.26the credit in this section. Amounts not used in fiscal year 2015 do not cancel but are
2.27available through fiscal year 2016.
