HF 1312

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; providing a tax credit for qualifying affordable housing
contributions; requiring a report; proposing coding for new law in Minnesota
Statutes, chapter 290.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [290.0661] CREDIT FOR AFFORDABLE HOUSING
CONTRIBUTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin Subject to the limitations and conditions in this
section, a taxpayer is allowed a credit equal to 50 percent of the amount certified to the
commissioner of revenue by the commissioner of the agency as qualifying affordable
housing contributions made by the taxpayer during the taxable year. The credit applies to
the liability for tax, less nonrefundable credits, imposed by:
new text end

new text begin (1) sections 290.06, subdivision 1, and 290.0921 for corporations; and
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new text begin (2) sections 290.06, subdivision 2c, and 290.091 for individuals.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Agency" means the Minnesota Housing Finance Agency.
new text end

new text begin (c) "Qualifying affordable housing contribution" means a donation made during
the taxable year for qualifying housing of:
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new text begin (1) cash; or
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new text begin (2)(i) the fair market value of land and improvements; (ii) marketable securities;
or (iii) construction materials and supplies to be used for qualifying housing, if the
aggregate amount or value donated by the taxpayer equals at least $1,000. Fair market
value of land and improvements must be determined by a qualified appraisal prepared by
a qualified appraiser as those terms are defined in Code of Federal Regulations, title 26,
section 1.170A-13.
new text end

new text begin (d) "Qualifying housing" means housing located in Minnesota, affordable to
households with income equal to or less than the greater of 80 percent of area or statewide
median income as established for the area or state by the United States Department of
Housing and Urban Development, the development or improvement of which is financed
in whole or in part by the agency or allocated tax credits by the agency.
new text end

new text begin Subd. 3. new text end

new text begin Credit allocation. new text end

new text begin A taxpayer must apply each year to the commissioner
of the agency for an allocation of qualifying affordable housing contribution tax credits.
A credit need not be allocated for all of a taxpayer's qualifying contributions. The
commissioner of the agency shall notify the commissioner regarding the identity of each
taxpayer that has been allocated tax credits for the following calendar year by September
1 of each year.
new text end

new text begin Subd. 4. new text end

new text begin Limitations; carryover. new text end

new text begin (a) The credit allowed to any taxpayer under this
section may not exceed $250,000 for any taxable year.
new text end

new text begin (b) The credit for the taxable year may not exceed the liability for tax, as defined in
subdivision 1, for the taxable year.
new text end

new text begin (c) If the amount of the credit determined under this section for any taxable year
exceeds the limitation under paragraph (b), the excess is a credit carryover to each of the
five succeeding taxable years. The entire amount of the excess unused credit for the
taxable year must be carried to the earliest of the taxable years to which the credit may be
carried and then to each successive year to which the credit may be carried. The amount of
the unused credit, which may be added under this paragraph, may not exceed the taxpayer's
liability for tax less any additional credit under this section for the current taxable year.
new text end

new text begin (d) The total credit allocation allowed for all taxpayers is limited to a total $.......
allocated for all taxable years as follows:
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new text begin (1) $....... for the taxable year beginning during calendar year 2007;
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new text begin (2) $....... for the taxable year beginning during calendar year 2008; and
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new text begin (3) $....... for the taxable year beginning during calendar year 2009.
new text end

new text begin Unallocated credits carry over from one year to the next.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin The commissioner of the agency shall report to the chairs of the
committees of the legislature with jurisdiction over taxes and housing policy by February
1, 2010, on the effectiveness of the credit under this section. The report must include,
at least, the estimated number of affordable housing units constructed or rehabilitated
as result of credit.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006, and before January 1, 2012.
new text end