Bill > HF2360

This bill establishes a new markets tax credit program in Minnesota designed to incentivize investments in low-income communities. The program allows qualified community development entities to receive tax credits for making equity investments in businesses located in greater Minnesota and metropolitan counties. Specifically, the bill creates a $100 million allocation for each geographic area ($50 million in credits for each), with credits calculated at zero percent for the first two credit allowance dates and ten percent for the final five dates. Qualified businesses must have at least 60 percent of their employees working in Minnesota and cannot derive more than 15 percent of their annual revenue from real estate rentals or sales. Entities applying for the credit must go through a detailed application process with the commissioner of employment and economic development, pay a $5,000 application fee, and meet specific investment requirements. The credits can be claimed against insurance premiums taxes and can be carried forward for up to five years if they exceed the current year's tax liability. The program will be in effect for taxable years beginning after December 31, 2025, and will expire after taxable years beginning after December 31, 2031, with a requirement for a legislative report evaluating the program's effectiveness by December 31, 2034.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2360&ssn=0&y=2025