SF1512 - New Markets Tax Credit

• Establishes a new markets tax credit in Minnesota allowing entities to claim credits against state income and insurance premium taxes for qualified equity investments in community development entities.

• Creates $60 million in credit allocation for greater Minnesota counties and $60 million for metropolitan counties, with a total of $30 million in credits allowed per region, awarded on a pro-rata basis.

• Requires qualified community development entities to invest 100% of funds into qualified low-income community businesses in Minnesota with principal operations located in the state, maintaining investments for seven years.

• Credits equal zero percent for the first two credit allowance dates and 10% for each of the final five credit allowance dates, claimable annually on the investment anniversary dates.

• Includes recapture provisions if federal credits are recaptured, if investments are redeemed before seven years, or if investment requirements are not maintained, with annual reporting requirements and fees for community development entities.

• Expires for taxable years beginning after December 31, 2031, though the commissioner may continue administering credits for previously issued certificates through 2034.