Minnesota Issues Updated Guidance to One-Time Increase to 2025 Homestead Credit Refunds
The Minnesota Department of Revenue has issued updated guidance regarding a one-time increase of nearly 15% to the 2025 Homestead Credit Refund, following tax legislation signed into law by Governor Tim Walz in May. Homeowners who have already filed their 2025 refund claims do not need to take any action, as the Department will automatically adjust eligible returns to reflect the increased refund amount.
For homeowners who have not yet filed, the Department is updating its free online filing system to incorporate the enhancement. Returns submitted between now and mid-July will be adjusted by the Department, while returns filed after mid-July will automatically include the increased credit. Paper forms and commercial tax preparation software are also being updated to account for the change.
To qualify for the Homestead Credit Refund, homeowners must be Minnesota residents with household income below $142,490, own and occupy their homestead as of January 2, 2026, and have no delinquent property taxes.
IRS Lists Participating States for New Scholarship Tax Credit
The IRS recently announced that 27 states have elected to participate in the new Federal Scholarship Tax Credit (FSTC) program, a voluntary initiative established under the One Big Beautiful Bill Act (OBBBA). Participating states currently include: Alabama, Alaska, Arkansas, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Louisiana, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming. The program allows eligible taxpayers to claim a federal tax credit of up to $1,700 for qualified contributions made to Scholarship Granting Organizations (SGOs), which provide scholarships to students for eligible elementary and secondary education expenses.
To qualify for the credit, taxpayers must make contributions to an SGO located in a state that has formally opted into the program. The IRS has published an initial list of participating states and will continue to update the official list as additional states complete the required election and certification process. Taxpayers should note that some state websites may not yet reflect their current participation status.
SpaceX and other IPO’s Draw Attention, but S&P 500 Inclusion May Take Time
As SpaceX prepares for its highly anticipated public debut tomorrow June 12th, investors are already looking ahead to whether the company could eventually join the S&P 500 Index. However, S&P Dow Jones Indices recently confirmed that it will not modify its eligibility requirements for large initial public offerings. As a result, SpaceX must still meet several criteria before it can be considered for inclusion, including at least 12 months of public trading history, sustained profitability under generally accepted accounting principles (GAAP), and a public float of at least 10% of outstanding shares. Based on its anticipated IPO, SpaceX would not be eligible for S&P 500 consideration until at least June 2027 and only if it satisfies the remaining requirements. The delay is significant because inclusion in the index could generate billions of dollars in investment inflows from index funds and exchange-traded funds that track the S&P 500.
While SpaceX is expected to be one of the most closely watched public offerings of the year, investor interest extends beyond a single company. Market participants continue to monitor several high-profile private companies that could become future public offerings, including OpenAI and Anthropic. Both artificial intelligence companies have attracted substantial private investment and achieved significant valuations as demand for AI technologies continues to grow.
For now, the S&P 500 remains the dominant benchmark for U.S. equities, with more than $20 trillion in assets linked to the index. While some competing index providers have adopted rules that allow certain large IPOs to qualify more quickly for inclusion, industry experts generally believe that the absence of any single company—even one as prominent as SpaceX—is unlikely to diminish the S&P 500’s role as the primary benchmark for institutional and retail investors.
IRS Announces Planned Guidance on Tax-Exempt Executive Compensation Rules
The Treasury Department and the IRS have announced plans to issue proposed regulations under Internal Revenue Code Section 4960 addressing the excise tax on excess executive compensation paid by applicable tax-exempt organizations (ATEOs). The forthcoming regulations will implement changes enacted under the 2025 Act, which significantly expands the definition of a “covered employee” for purposes of the excise tax.
Beginning with taxable years starting after December 31, 2025, the definition of a covered employee will broaden from the organization’s five highest-compensated employees to include any employee receiving compensation in excess of $1 million. The anticipated regulations are expected to provide exceptions for employees with “limited hours” or those compensated from “nonexempt funds.” However, the current “limited services” exception will be eliminated under the new framework.
Until formal regulations are issued, ATEOs may rely on the interim guidance provided in the IRS notice. The IRS is also seeking public input on the proposed changes and has requested comments on all issues addressed in the notice by August 4, 2026.
