Bill > HF457

This bill establishes a refundable tax credit and grant program to incentivize the conversion of underutilized buildings in Minnesota. The program allows developers, property owners, or taxpayers to receive a credit or grant up to 30% of qualifying conversion expenses for buildings that are at least 15 years old and either being converted between commercial uses or revitalizing a space that has been vacant for at least five years. To qualify, projects must retain at least 75% of existing external walls and 75% of internal structural framework, and complete conversion work within three years of receiving an allocation certificate. Applicants must apply to the Minnesota Department of Employment and Economic Development before beginning conversion, providing detailed project information. The credit is refundable, meaning if the credit amount exceeds tax liability, the excess will be refunded. The program includes provisions for transferring credits, passing credits through partnerships, and requires detailed economic impact reporting. A conversion credit administration account will be established to manage the program, which includes an optional application fee. The program has a sunset provision, expiring after fiscal year 2031, with some administrative authorities extending to 2035. A public hearing process is mandated to gather stakeholder feedback on the program's implementation. The bill is effective for taxable years beginning after December 31, 2025.

Budget and Finance, Housing and Urban Affairs

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0457&ssn=0&y=2025