HF 2344

1st Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to housing; providing for an income tax 
  1.3             credit for contributions by an employer for employee 
  1.4             housing; proposing coding for new law in Minnesota 
  1.5             Statutes, chapter 290. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [290.0681] [CREDIT FOR EMPLOYER CONTRIBUTIONS 
  1.8   FOR EMPLOYEE HOUSING.] 
  1.9      Subdivision 1.  [CREDIT ALLOWED.] Subject to the 
  1.10  limitations and conditions of this section, a taxpayer is 
  1.11  allowed a credit against the tax imposed by section 290.06, 
  1.12  subdivision 1 or 2c, in an amount equal to 50 percent of the 
  1.13  amount certified to the commissioner by the commissioner of the 
  1.14  housing finance agency as qualifying employer housing 
  1.15  contributions made by the taxpayer during the taxable year. 
  1.16     Subd. 2.  [DEFINITION.] For the purpose of this section, a 
  1.17  "qualifying employer housing contribution" means a cash 
  1.18  contribution made by an employer (1) as capital for production 
  1.19  of affordable housing; (2) for direct down payment assistance 
  1.20  for employees; or (3) to a fund administered by a nonprofit 
  1.21  corporation or government agency and used as capital for 
  1.22  production of affordable housing or direct down payment 
  1.23  assistance. 
  1.24     Subd. 3.  [CREDIT ALLOCATION.] An employer must apply each 
  1.25  year to the commissioner of the housing finance agency for an 
  2.1   allocation of qualifying employer housing contribution tax 
  2.2   credits.  The credit is at a rate of 50 percent of qualifying 
  2.3   employer housing contributions.  A credit need not be allocated 
  2.4   for all of an employer's qualifying contributions.  The 
  2.5   commissioner shall notify the commissioner of revenue regarding 
  2.6   the identity of each employer that has been allocated the tax 
  2.7   credits for the following calendar year, by September 1 of each 
  2.8   year.  The commissioner of the housing finance agency shall give 
  2.9   priority to employers that collaborate and receive matching 
  2.10  funds from a nonprofit organization and projects which best 
  2.11  promote the economic vitality of the community or region they 
  2.12  are located in. 
  2.13     Subd. 4.  [LIMITATIONS; CARRYOVER.] (a) The credit allowed 
  2.14  to any taxpayer under this section may not exceed $250,000 for 
  2.15  any taxable year. 
  2.16     (b) The credit for the taxable year shall not exceed the 
  2.17  tax imposed on the taxpayer for the taxable year under section 
  2.18  290.06, subdivision 1 or 2c, reduced by the sum of the 
  2.19  nonrefundable credits allowed under this chapter. 
  2.20     (c) If the amount of the credit determined under this 
  2.21  section for any taxable year exceeds the limitation under 
  2.22  paragraph (b), the excess shall be a credit carryover to each of 
  2.23  the five succeeding taxable years.  The entire amount of the 
  2.24  excess unused credit for the taxable year shall be carried, 
  2.25  first to the earliest of the taxable years to which the credit 
  2.26  may be carried, and then to each successive year to which the 
  2.27  credit may be carried.  The amount of the unused credit which 
  2.28  may be added under this paragraph shall not exceed the 
  2.29  taxpayer's liability for tax less any additional credit under 
  2.30  this section for the current taxable year. 
  2.31     (d) The total credit allocation allowed for all taxpayers 
  2.32  is limited to $10,000,000.  The total credit remains available 
  2.33  until it is completely allocated or until December 31, 2002, 
  2.34  whichever occurs earlier. Unallocated credits carry over from 
  2.35  one year to the next. 
  2.36     Sec. 2.  [CONTINGENT EFFECTIVE DATE; MATCH REQUIREMENT.] 
  3.1      Contingent on the agency receiving a commitment for at 
  3.2   least $10,000,000 from nonstate resources that would be used in 
  3.3   coordination with the agency's programs to secure affordable 
  3.4   housing for workers, section 1 is effective for taxable years 
  3.5   beginning after December 31, 1998.