Bill > HF178

This bill creates a new sales tax exemption and refund program for the construction of new multifamily residential housing specifically designed for first-time homebuyers. The exemption applies to materials, supplies, and equipment used in constructing duplexes and triplexes, and is limited to the first $165,000 of construction costs. To qualify, the owner must ensure that at least one unit will be occupied by a first-time homebuyer, and the purchase agreement must demonstrate that the tax savings were passed on to the buyer by reducing the home's purchase price. The tax will still be initially collected at the standard rate but can then be refunded to the qualified recipient after proving they meet the program's requirements. This tax exemption and refund program is set to expire on July 1, 2033, and will become effective for sales and purchases made after June 30, 2025. The bill aims to incentivize the construction of affordable housing for first-time homebuyers by providing a financial benefit to developers who create such housing.

Budget and Finance, Housing and Urban Affairs

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0178&ssn=0&y=2025