H.F. No. 3840 Summary

• Creates a Minnesota housing tax credit against income and insurance taxes allowing taxpayers to claim allocated amounts in the year of allocation and the five following taxable years.

• Establishes a 6-year allocation period (January 1, 2017 through December 31, 2022) with $7,000,000 available in 2017 and unused credits carrying forward; requires 50 percent of total allocated credits be designated for projects in Greater Minnesota.

• Allows credits to be assigned and reassigned to other taxpayers without regard to project ownership, and permits unused credits to carry forward for up to 11 succeeding taxable years.

• Requires qualified Minnesota projects to be financed with tax-exempt bonds, eligible for federal low-income housing tax credits, and operated under a 15-year compliance agreement recorded as an affordable housing restriction on the property.

• Mandates annual reporting by January 15 on program success including number of projects funded, total housing units created, geographic location, demographic information about residents served, and how allocations address affordable housing needs and disparities.