SF 3164

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/21/2024 09:23am

A bill for an act
relating to economic development; modifying the definition of financial assistance
to include certain Tax Increment Financing or allocations of low-income housing
credits; amending Minnesota Statutes 2023 Supplement, section 116J.871,
subdivision 1.

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

Section 1.

Minnesota Statutes 2023 Supplement, section 116J.871, subdivision 1, is
amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given them.

(b) "Economic development" means financial assistance provided to a person directly
or to a local unit of government or nonprofit organization on behalf of a person who is
engaged in the manufacture or sale of goods and services. Economic development does not
include (1) financial assistance for rehabilitation of existing housing; (2) financial assistance
for new housing construction in which total financial assistance at a single project site is
less than $100,000; or (3) financial assistance for the new construction of fully detached
single-family affordable homeownership units for which the financial assistance covers no
more than ten fully detached single-family affordable homeownership units. For purposes
of this paragraph, "affordable homeownership" means housing targeted at households with
incomes, at initial occupancy, at or below 115 percent of the state or area median income,
whichever is greater, as determined by the United States Department of Housing and Urban
Development.

(c) "Financial assistance" means (1) a grant awarded by a state agency for economic
development related purposes if a single business receives $200,000 or more of the grant
proceeds; (2) a loan or the guaranty or purchase of a loan made by a state agency for
economic development related purposes if a single business receives $500,000 or more of
the loan proceeds; deleted text begin or deleted text end (3) a reduction, credit, or abatement of a tax assessed under chapter
297A where the tax reduction, credit, or abatement applies to a geographic area smaller
than the entire state and was granted for economic development related purposes new text begin ; (4) tax
increment financing pursuant to section 469.174, provided that such tax increment financing
(i) provides financial assistance to a development that consists, in part or in whole, of 25
units or more of multifamily housing or (ii) provides $100,000 or more of financial assistance
to a development of any number of units of multifamily housing; or (5) allocations of
low-income housing credits by all suballocators as defined under section 462A.222, for
which tax credits are used for multifamily housing projects consisting of more than ten
units new text end . Financial assistance does not include payments by the state of aids and credits under
chapter 273 or 477A to a political subdivision.

(d) "Project site" means the location where improvements are made that are financed in
whole or in part by the financial assistance; or the location of employees that receive financial
assistance in the form of employment and training services as defined in section 116L.19,
subdivision 4, or customized training from a technical college.

(e) "State agency" means any agency defined under section 16B.01, subdivision 2,
Enterprise Minnesota, Inc., and the Iron Range Resources and Rehabilitation Board.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for financial assistance provided after
August 1, 2024.
new text end