Department of Revenue to designate scholarship granting organizations
Summary
SF4546 would require the Minnesota Commissioner of Revenue to create and publish an annual list of Minnesota scholarship granting organizations that meet the requirements of section 25F of the Internal Revenue Code. By January 1 each year, the commissioner must submit the list to the U.S. Secretary of the Treasury and post it on the Department of Revenue’s website. The submission would function as Minnesota’s election to participate in the federal scholarship granting organization program created under section 25F.
The bill also allows the commissioner to adopt rules about the application process and documentation needed for an entity to be included on the list, but specifies that the commissioner’s role is ministerial and must conform to federal law and guidance. Eligible organizations already registered and permitted to operate and receive donations in Minnesota could participate by filing a notice of intent by December 1 of the prior year. The bill defines “scholarship granting organization” by reference to the federal tax code as amended through July 4, 2025.
Impact
The bill would add a new section to Minnesota Statutes, chapter 270C, and place the Department of Revenue in the role of identifying and certifying scholarship granting organizations for purposes of federal tax law. It would not directly create a state scholarship program or tax credit on its own, but it would establish the state administrative mechanism needed for Minnesota organizations to be recognized under section 25F of the Internal Revenue Code and to receive qualified donations under that federal framework. The practical effect would be to affect scholarship-granting nonprofits, donors, and families who benefit from privately funded K-12 scholarships.
Sentiment
No committee transcripts or votes were provided, so there is no recorded debate or roll-call history to indicate support or opposition. Based on the bill text alone, the measure appears administrative and implementation-focused rather than controversial on its face, since it primarily directs the Department of Revenue to compile and submit a federally required list. The absence of recorded discussion makes it difficult to assess broader legislative sentiment.
Contention
The main potential point of contention is the state’s role in participating in a federal scholarship-granting organization program and whether the Department of Revenue should have any discretion beyond a ministerial review. Another possible issue is the bill’s reliance on federal tax-code definitions and guidance, which could raise concerns about administrative burden, conformity with future federal changes, or the effect on public education funding and private school scholarship access. However, no specific objections or supporters are identified in the available materials.
Student Scholarship Organizations; State of Georgia to participate in the federal tax credit program for contributions of individuals to scholarship granting organizations; provide
Revenue and taxation; income tax; federal income tax credit; election to participate; scholarship granting organizations; Oklahoma Tax Commission; effective date.