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, the bill introduces new definitions for "Greater Minnesota" and "Metropolitan area," clarifying the geographical scope for housing projects. Additionally, it mandates that 50 percent of the tax credits be reserved for contributions to qualified projects located in Greater Minnesota, with any unallocated credits becoming available for other projects after a specified date.

Furthermore, the bill outlines restrictions on eligible recipients for grants or loans, specifying disqualified individuals and businesses that have made contributions to the housing tax credit account in the current or prior taxable year. It requires all recipients to sign a disclosure confirming their eligibility and allows the Minnesota Housing Finance Agency to rely on this disclosure for determining eligibility. The bill also emphasizes that funds must be used to serve households meeting specific income limits, except for projects funded under a separate section. The effective date for these changes is set for taxable years beginning after December 31, 2026.

Statutes affected:
Introduction: 290.0683, 462A.40