MN HF3841

Establishes a workforce housing tax credit allowing investors to claim 40 percent of qualified investments in workforce housing projects, with a maximum credit of $1,000,000 per taxpayer.

Limits credit allocation to $15,000,000 for taxable years 2017-2018 and $30,000,000 for taxable years 2018-2022, with no more than 40 percent of credits allocated to any single project.

Restricts eligible projects to greater Minnesota areas with population density over 200 persons per square mile, low vacancy rates of 4 percent or less, and limited recent market-rate rental construction (fewer than 4 units per 1,000 residents in the last 10 years).

Requires qualifying projects to have minimum 3 dwelling units with construction costs between $75,000 and $250,000 per unit and more than 50 percent nonstate funding.

Mandates annual reporting by March 15 starting in 2018 to legislative committees on credit availability, workforce housing needs, funded projects, economic growth results, and credit issuance and revocation data.