The proposed bill establishes a new markets tax credit in Minnesota to encourage investment in qualified active low-income community businesses. It amends various sections of the Minnesota Statutes, including the addition of a new subdivision to section 13.4967, which pertains to the disclosure of information regarding the issuance of new market tax credit certificates. Additionally, it modifies section 116J.401 to permit the commissioner to share data with the Department of Revenue for the administration of the new markets tax credit. The new law will be codified as Minnesota Statutes, chapter 116Y, and will take effect the day after final enactment.

The bill outlines the definitions, eligibility criteria, and application process for the new markets tax credit, requiring qualified community development entities to apply and submit necessary documentation. It caps the total amount of credits at $50 million for both greater Minnesota and metropolitan counties and tasks the commissioner with certifying applications and ensuring compliance. The bill also includes provisions for the recapture of tax credits under specific conditions, mandates annual reporting from qualified entities, and creates a new account in the state treasury for managing the program. Furthermore, it allows for the disclosure of tax return information to the Department of Employment and Economic Development and introduces a new tax credit against the premiums tax, which can be carried over for up to five years. The provisions are set to take effect for taxable years beginning after December 31, 2025, with certain sections expiring after January 1, 2034.

Statutes affected:
Introduction: 13.4967, 116J.401, 270B.14, 297I.20