This bill proposes the establishment of a refundable tax credit for the conversion of underutilized buildings in Minnesota, aimed at encouraging the redevelopment of structures that have been vacant or underused. The credit allows for a reimbursement of up to 30% of qualifying conversion expenses for projects that meet specific criteria, such as retaining a significant portion of the existing structure and demonstrating a substantial change in use. Additionally, the bill allows for grants in lieu of the credit and mandates that applicants apply for the credit or grant before beginning any conversion work. The bill also establishes a conversion credit administration account to manage the program and outlines the application process, eligibility requirements, and the responsibilities of the commissioner of employment and economic development.

Furthermore, the bill includes provisions for reporting on the economic impact of the projects, with annual reports required and a comprehensive five-year report due after 2031. It also sets a sunset provision, stating that the program will expire after fiscal year 2031, although the authority to issue credit certificates based on prior allocations will remain until 2035. The bill emphasizes stakeholder engagement by requiring a public hearing to gather feedback on the program's application process. Overall, this legislation aims to revitalize underutilized properties while ensuring accountability and transparency in its implementation.