MN SF3307

Creates a Minnesota low-income housing tax credit for qualified low-income rental housing projects owned by taxpayers or section 501(c)(3) nonprofits that have received federal low-income housing credits or economic development and housing challenge program funding

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

Permits taxpayers to claim the allocated credit over 5 taxable years (the year of allocation plus 4 following years), with excess credits carried forward up to 5 additional years, and allows transfer or sale of credits without regard to project ownership

Requires qualified projects to maintain a 15-year compliance period and enter into regulatory agreements recorded as affordable housing restrictions on the property, enforceable by state and local agencies

Directs the Minnesota Housing Finance Agency to submit a report by January 15, 2015, to the legislature on the program's success and efficiency, including recommendations for enhancements or modifications