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 pertains to 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 markets tax credit. Furthermore, it introduces a new chapter, 116Y, detailing definitions, eligibility criteria, application processes, and the structure of the tax credit, which will provide a credit against the tax imposed under chapter 297I.

The legislation outlines the application process for qualified community development entities, including documentation and fee requirements, while setting limits on the total credits available for investments in both greater Minnesota and metropolitan counties. It mandates the return of voided certifications to the commissioner, who must notify the commissioner of revenue about approved credits within 15 days. The bill also specifies conditions for credit recapture and requires annual reports from qualified entities on their investments and employment impacts. Additionally, it establishes a new account for the tax credit in the state treasury and allows for the disclosure of certain tax return information to the Department of Employment and Economic Development. The provisions are set to take effect for taxable years beginning after December 31, 2025, with some sections expiring after January 1, 2034.

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