Bill > SF2327

This bill establishes a new markets tax credit program in Minnesota designed to incentivize investments in low-income communities. The bill creates a tax credit against insurance premiums for entities that make qualified equity investments in certified community development entities targeting investments in greater Minnesota and metropolitan counties. The credit is structured as a 10% tax credit over seven years, with specific allocations of $50 million for greater Minnesota counties and $50 million for metropolitan counties. Qualified community development entities must apply to the commissioner of employment and economic development, meet specific requirements such as investing at least 100% of the cash purchase price in qualified low-income community businesses within 12 months, and submit annual reports detailing their investments and employment impacts. The bill includes detailed provisions for credit certification, recapture of credits if certain conditions are not met, and creates an account to manage the program. The tax credit program is set to be effective for taxable years beginning after December 31, 2025, and will expire for taxable years beginning after December 31, 2031, though credits issued before expiration can continue to be claimed. The program aims to encourage economic development and job creation in low-income areas of Minnesota by providing tax incentives for strategic investments.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2327&ssn=0&y=2025