SF 2958

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxes; providing a tax credit as a 
  1.3             qualifying affordable housing contribution; proposing 
  1.4             coding for new law in Minnesota Statutes, chapter 290. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [290.0661] [CREDIT FOR CONTRIBUTIONS FOR 
  1.7   AFFORDABLE HOUSING.] 
  1.8      Subdivision 1.  [CREDIT ALLOWED.] Subject to the 
  1.9   limitations and conditions of this section, a taxpayer is 
  1.10  allowed a credit against the tax imposed by section 290.06, 
  1.11  subdivision 1 or 2c, in an amount equal to 50 percent of the 
  1.12  amount certified to the commissioner of revenue by the 
  1.13  commissioner of the housing finance agency as qualifying 
  1.14  affordable housing contributions made by the taxpayer during the 
  1.15  taxable year. 
  1.16     Subd. 2.  [QUALIFYING AFFORDABLE HOUSING CONTRIBUTION.] For 
  1.17  the purpose of this section, a "qualifying affordable housing 
  1.18  contribution" means a cash donation, a donation of land and 
  1.19  improvements, or a donation of marketable securities by a 
  1.20  taxpayer for qualifying housing.  "Qualifying housing" means 
  1.21  housing located in the state of Minnesota, affordable to 
  1.22  households with incomes equal to or less than the greater of 80 
  1.23  percent of area or statewide median income as established for 
  1.24  the area or state by the United States Department of Housing and 
  1.25  Urban Development, the development or improvement of which is 
  2.1   funded in part by the housing finance agency. 
  2.2      Subd. 3.  [CREDIT ALLOCATION.] A taxpayer must apply each 
  2.3   year to the commissioner of the housing finance agency for an 
  2.4   allocation of qualifying affordable housing contribution tax 
  2.5   credits.  The credit equals 50 percent of qualifying affordable 
  2.6   housing contributions.  A credit need not be allocated for all 
  2.7   of a taxpayer's qualifying contributions.  The commissioner of 
  2.8   the housing finance agency shall notify the commissioner 
  2.9   regarding the identity of each taxpayer that has been allocated 
  2.10  the tax credits for the following calendar year, by September 1 
  2.11  of each year. 
  2.12     Subd. 4.  [LIMITATIONS; CARRYOVER.] (a) The credit allowed 
  2.13  to any taxpayer under this section may not exceed $250,000 for 
  2.14  any taxable year. 
  2.15     (b) The credit for the taxable year may not exceed the tax 
  2.16  imposed on the taxpayer for the taxable year under section 
  2.17  290.06, subdivision 1 or 2c, reduced by the sum of the 
  2.18  nonrefundable credits allowed under this chapter. 
  2.19     (c) If the amount of the credit determined under this 
  2.20  section for any taxable year exceeds the limitation under 
  2.21  paragraph (b), the excess is a credit carryover to each of the 
  2.22  five succeeding taxable years.  The entire amount of the excess 
  2.23  unused credit for the taxable year must be carried first to the 
  2.24  earliest of the taxable years to which the credit may be carried 
  2.25  and then to each successive year to which the credit may be 
  2.26  carried.  The amount of the unused credit which may be added 
  2.27  under this paragraph may not exceed the taxpayer's liability for 
  2.28  tax less any additional credit under this section for the 
  2.29  current taxable year. 
  2.30     (d) The total credit allocation allowed for all taxpayers 
  2.31  is limited to a total of $....... allocated amount for all 
  2.32  taxable years as follows: 
  2.33     (1) $....... for taxable years beginning during calendar 
  2.34  year 2002; and 
  2.35     (2) $....... for taxable years beginning during calendar 
  2.36  year 2003. 
  3.1      Unallocated credits carry over from one year to the next. 
  3.2      Subd. 5.  [REPORT.] The commissioner of the housing finance 
  3.3   agency shall report to the chairs of committees of the 
  3.4   legislature with jurisdiction over taxes and housing policy by 
  3.5   February 1, 2003, on the effectiveness of the credit under this 
  3.6   section.  The report must include, at least, the estimated 
  3.7   number of affordable housing units constructed or rehabilitated 
  3.8   as a result of the credit. 
  3.9      [EFFECTIVE DATE.] This section is effective for taxable 
  3.10  years beginning after December 31, 2001, and before January 1, 
  3.11  2005.