MN HF3851

Creates a new refundable renters' property tax credit under section 290.0693 against individual income tax, effective for taxable years beginning after December 31, 2015, and for rent paid in calendar year 2016 and thereafter.

Makes the credit refundable, requiring the commissioner to refund any credit amount exceeding the taxpayer's tax liability, with refunds appropriated from the general fund.

Establishes income-based brackets for renters with maximum state refund credit amounts ranging from $2,000 (household income $0-$6,529) down to $200 (household income $55,540-$57,169), with no credit allowed above $57,170 household income.

Requires renters eligible for the credit to claim it on their individual income tax form rather than as a separate refund claim, and requires claimants entitled to both homeowner and renter refunds to claim them separately.

Repeals the prior renters credit appropriation statute (Minnesota Statutes section 290A.23, subdivision 1) and updates verification procedures for detecting fraudulent homestead classifications claimed by renters receiving tax credits.