SF3301 Summary

• Creates a Minnesota housing tax credit allowing taxpayers to claim a credit equal to contributions of $100 to $5,000,000 annually to a housing tax credit contribution fund, with credits capped at $25,000,000 statewide per year.

• Excess credits not usable in the current year may be carried forward to the next ten taxable years in sequential order.

• Establishes the Minnesota housing tax credit contribution fund as a revolving fund administered by the Minnesota Housing Finance Agency, which awards grants and loans for multifamily and single-family housing developments serving low and moderate-income households.

• Requires 35 percent of financing to be set aside for single-family homes and 20 percent for cities with populations under 10,000, with preference given to projects incorporating regulatory changes that reduce costs.

• Extends the tax credit to insurance companies against premiums taxes and requires the commissioner to report annually by January 15 to legislative committees on tax credits and financing provided by region.