This bill establishes a new markets tax credit in Minnesota to promote investment in qualified active low-income community businesses. It amends the Minnesota Statutes by adding 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 individual data with the Department of Revenue for the administration of the tax credit. A new chapter, 116Y, is introduced to define eligibility criteria, application processes, and the structure of the tax credit, which will be available to entities making qualified equity investments, with specific credit allowance schedules and limitations based on geographic areas.

The bill outlines a process for recapturing credits if certain conditions are not met, such as early redemption of investments or failure to meet investment requirements. It mandates annual reporting from qualified community development entities on their investments and employment impacts, and it creates a new account for the Minnesota new markets tax credit, detailing the appropriation of fees for administrative costs. 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, effective for taxable years beginning after December 31, 2025, with the program set to expire after December 31, 2031, subject to certain exceptions.

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