HF 3724 Summary

• Creates a Minnesota low-income housing tax credit under new statute 290.0682 for qualified low-income rental housing projects located in Minnesota.

• Allows the Minnesota Housing Finance Agency and suballocators to allocate credits annually for a five-year period beginning January 1, 2011, consisting of federal per capita tax credits, unused credits from prior years, and returned credits.

• Permits taxpayers to claim the credit against taxes for the year allocated and the four following taxable years, with excess credits carried forward up to five successive years on a daily basis.

• Allows tax credits to be transferred, sold, or assigned to other taxpayers without regard to project ownership or entity documents, and exempts proceeds from such transfers from taxation.

• Requires the Minnesota Housing Finance Agency to submit a report to legislative tax committees by January 15, 2015, detailing program success, efficiency, and recommendations for enhancement or modifications.