This bill proposes the establishment of a nonpublic school tax credit in Minnesota, allowing individual taxpayers to claim a credit for each qualifying student attending a nonpublic school. The credit amount is determined by multiplying the number of qualifying students by a specified formula allowance for the relevant school fiscal year. The bill defines key terms such as "full-time academic instruction," "noncustodial parent," and "qualifying student," and outlines the conditions under which a noncustodial parent may claim the credit, including the requirement to attach relevant documentation to their tax return.

Additionally, the bill includes provisions regarding the administration of the credit, specifying that it cannot be used to offset delinquent tax liabilities or penalties, and that refunds based on the credit are not subject to revenue recapture. The commissioner of revenue is granted the authority to adopt rules to implement the credit, with the stipulation that they cannot require more evidence of compliance with attendance requirements than what is already mandated. The provisions of this bill will take effect for taxable years beginning after December 31, 2024.