This bill introduces a refundable construction exemption for first-time homebuyers constructing new single-family residential homes in Minnesota. It amends Minnesota Statutes 2024, specifically section 297A.71, by adding a new subdivision that outlines the criteria for the exemption. The exemption applies to materials and supplies used in the construction, limited to taxes paid on the first $165,000 of costs. To qualify, the homebuyer must be a first-time buyer, and the purchase agreement must reflect that the tax savings reduced the home's purchase price. The bill also stipulates that the tax on these purchases will be collected as if they were taxable and then refunded, with the subdivision set to expire on July 1, 2033.

Additionally, the bill amends section 297A.75 to include the new exemption for building materials, equipment, and supplies for the construction of new single-family residential housing. It specifies that the owner of the new home at the time of purchase is eligible to apply for the refund. The effective date for these provisions is set for sales and purchases made after June 30, 2025. The bill aims to support first-time homebuyers by reducing the financial burden associated with new home construction.

Statutes affected:
Introduction: 297A.71, 297A.75
1st Engrossment: 297A.71, 297A.75