This bill establishes a new markets tax credit in Minnesota to promote investment in qualified active low-income community businesses. It amends several sections of the Minnesota Statutes, including the addition of a new subdivision to section 13.4967, which addresses the disclosure of information related to the issuance of new market tax credit certificates. The bill also modifies section 116J.401 to permit the commissioner to share individual data with the Department of Revenue for the administration of the new tax credit. Additionally, it introduces a new chapter, 116Y, detailing definitions, eligibility criteria, application processes, and the structure of the tax credit.

The tax credit will be available to entities making qualified equity investments, with a defined credit allowance schedule and limitations on the total credits for both greater Minnesota and metropolitan counties. The bill outlines the application process, investment certification, and the transfer of investment authority among qualified community development entities. It includes provisions for voided certifications, a credit recapture process, and annual reporting requirements for qualified entities. The new markets tax credit will expire for taxable years beginning after December 31, 2031, but allows for the continuation of certain credits based on previously issued certificates, with an effective date for these provisions set for taxable years beginning after December 31, 2025.

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