This bill modifies the Minnesota housing tax credit contributions by redefining eligible recipients and establishing a set-aside for credit allocations. It amends Minnesota Statutes 2024, specifically sections 290.0683 and 462A.40. Notably, it introduces new definitions for "Greater Minnesota" and "Metropolitan area," and mandates that the Minnesota Housing Finance Agency reserve 50 percent of credits for contributions to qualified projects located in Greater Minnesota. Any unallocated credits by September 30 of each year will then be available for other qualified projects starting October 1. The bill also specifies that these changes will take effect for taxable years beginning after December 31, 2026.

Additionally, the bill outlines restrictions on eligible recipients for grants or loans, defining disqualified individuals and businesses based on their contributions to the housing tax credit account. It requires all recipients to sign a disclosure confirming their eligibility and allows the agency to award grants or loans to various entities, including cities, tribal organizations, and nonprofit organizations. Furthermore, it stipulates that funds must be used to serve households meeting specific income limits, except for projects funded under a different section.

Statutes affected:
Introduction: 290.0683, 462A.40