Bill > HF2142

This bill modifies the rules for the historic structure rehabilitation tax credit program in Minnesota, primarily focusing on how these credits can be assigned and processed. Currently, developers of historic rehabilitation projects must apply to a state office before beginning work, paying a small application fee. The bill introduces a key change allowing a credit certificate to be assigned twice - first to an initial assignee and then to a second assignee before the credit is claimed. The bill removes previous language that limited project completion to within three calendar years of the allocation certificate's issuance, which provides more flexibility for developers. When a project is completed, the office will issue a credit certificate equal to the federal historic rehabilitation credit, with a grant option available at 90% of the federal credit amount. Developers must notify the state office when the project is placed in service, and both the original credit certificate recipient and any assignees must file a tax return for the year the project is completed. The changes are set to take effect for allocation certificate applications submitted after June 30, 2025, giving developers and investors advance notice of the new rules. This bill aims to make the historic structure rehabilitation credit more transferable and potentially more attractive to developers and investors.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2142&ssn=0&y=2025