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HF3903 (Legislative Session 94 (2025-2026))

Eligible recipients for the Minnesota housing tax credit contributions modified, and set-aside for credit allocations required.

Related bill: SF4043

AI Generated Summary

Purpose

  • This bill aims to modify who can receive Minnesota housing tax credit contributions and to require a set-aside of credit allocations.

Main Provisions

  • Amends Minnesota Statutes 2024, section 290.0683, subdivision 1 to update definitions used for the housing tax credit program.
  • Defines key terms to clarify program administration:
    • Agency: Minnesota Housing Finance Agency
    • Greater Minnesota: areas of Minnesota outside the metropolitan area
    • Metropolitan area: as defined in another statute
    • Minnesota housing tax credit contribution account: the account established in section 462A.40
    • Qualified project: a project that qualifies for a grant or loan under section 462A.40, subdivision e
    • Taxpayer: a taxpayer as defined in section 290.01, subdivision 6 or section 297I.01, subdivision 16
  • Introduces or codifies a requirement for a set-aside for credit allocations. This means a portion of available tax credit contributions must be reserved for allocation to certain eligible recipients.
  • Connects to other program rules by referencing:
    • The Minnesota Housing Finance Agency as the administering entity
    • The Minnesota housing tax credit contribution account linked to section 462A.40
    • Qualified projects that qualify for grants or loans under section 462A.40, subdivision e
  • The changes affect how eligible recipients are defined and how credits are allocated, including geographic considerations (Greater Minnesota vs Metropolitan area).

Significance and Potential Effects

  • Clarifies and potentially tightens who can receive tax credit contributions by expanding or refining definitions.
  • Establishes a mandatory set-aside, which could direct a portion of allocations to specific eligible recipients or project types.
  • Strengthens oversight and administration by tying definitions and allocations to the Minnesota Housing Finance Agency and the existing framework in section 462A.40.
  • May impact the distribution of credits between Greater Minnesota and the metropolitan area by formalizing geographic considerations in eligibility and set-aside criteria.

Administrative and Contextual Notes

  • The excerpt focuses on definitions and the mechanism of a set-aside; full details on who qualifies for the set-aside and how recipients are selected would appear in the complete text of the bill and related statute sections.
  • No explicit effective date is provided in the excerpt.

Key Implications to Watch

  • How the set-aside is sized and which recipients qualify for it.
  • Whether the redefined terms broaden or narrow eligibility for tax credit contributions.
  • The practical impact on project financing and the geographic distribution of credits.

Relevant Terms

  • Minnesota Housing Finance Agency
  • Greater Minnesota
  • Metropolitan area
  • Minnesota housing tax credit contribution account
  • Qualified project
  • Taxpayer
  • Credit allocations
  • Set-aside
  • Section 462A.40
  • Section 290.0683
  • Minnesota Statutes

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 02, 2026HouseActionIntroduction and first reading, referred toHousing Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill amends Minnesota Statutes 2024 section 290.0683, subdivision 1, relating to the Minnesota housing tax credit contributions.",
      "modified": []
    },
    "citation": "290.0683",
    "subdivision": "subd. 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references Minnesota Statutes 2024 section 290.0683, subdivision 3.",
      "modified": []
    },
    "citation": "290.0683",
    "subdivision": "subd. 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cross-reference to Minnesota Statutes section 473.121, subdivision 2 (definition of Metropolitan area) used in the bill.",
      "modified": []
    },
    "citation": "473.121",
    "subdivision": "subd. 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cross-reference to Minnesota Statutes section 462A.40, subdivision 3 (account-related provisions) used in the bill.",
      "modified": []
    },
    "citation": "462A.40",
    "subdivision": "subd. 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cross-reference to section 462A.40(d) within the bill text.",
      "modified": []
    },
    "citation": "462A.40",
    "subdivision": "d"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cross-reference to section 462A.40(e) within the bill text.",
      "modified": []
    },
    "citation": "462A.40",
    "subdivision": "e"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cross-reference to Minnesota Statutes section 290.01, subdivision 6 (definition of Taxpayer) used in the bill.",
      "modified": []
    },
    "citation": "290.01",
    "subdivision": "subd. 6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cross-reference to Minnesota Statutes section 297I.01, subdivision 16 (definition of Taxpayer) used in the bill.",
      "modified": []
    },
    "citation": "297I.01",
    "subdivision": "subd. 16"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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