Bill > HF177

This bill establishes a new sales and use tax exemption and refund mechanism for the construction of new single-family homes for first-time homebuyers in Minnesota. Specifically, the bill provides a tax exemption for up to $165,000 of materials, supplies, and equipment used in constructing a new single-family home, with the condition that the final homeowner is a first-time homebuyer. To qualify for the exemption, the purchase agreement must demonstrate that the tax savings were passed on to reduce the home's purchase price. The tax will initially be collected as if it were taxable, but then the qualified recipient can apply for a full refund from the state. Purchasers must provide proof to the commissioner that they meet the first-time homebuyer requirements and that the tax savings were reflected in the home's price. The exemption is set to expire on July 1, 2033, and will be effective for sales and purchases made after June 30, 2025. This legislation aims to help make new home construction more affordable for first-time homebuyers by providing a tax incentive that can potentially lower the overall cost of a new home.

Budget and Finance, Housing and Urban Affairs

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0177&ssn=0&y=2025