[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6652498,"mediaKeyId","2490546-fd7b36d28b1504c2256a4602e55edad8","parentId",2490546,"title","Committee lays over bill to give 30% tax credit for converting vacant buildings to housing; amendment on affordability fails","audioSeconds",4023,"startMs",1748430,"endMs",5772410,"viewUrl","/Search/View?dp=1&key=2490546-fd7b36d28b1504c2256a4602e55edad8&start=1748&end=5772","thumbnailUrl","https://assets.pipeline.soar.com/2490546-fd7b36d28b1504c2256a4602e55edad8/thumbnail_1748430.jpg","articleUrl","/articles/6652498/Minnesota/Committee-lays-over-bill-to-give-30-tax-credit-for-converting-vacant-buildings-to-housing-amendment-on-affordability-fails","mediaUrl","https://secure.pipeline.soar.com/6652498-9166679ce0b827134d92113b14f8aa52/orig.mp4?Expires=1775850488&Signature=dE~c~aSkRiqTepHP0A397hI~ErOtgkka6Qbw753-WYw1dN05lqbGbGQMzwdIKTOdscBs6C--8taKb7BHgEoJ2XcF4bzhcwbtsc5okHb5DVmR0XSKj-auJ3yRiJvv8ax~PvLhOCezO9lxUOgzdO2JMFyqs5xtHYf3qx0VC-HziReC2FpgcijIfW8kpTiWEuWETcfNpkpwY4RyiIA6Jzh6~UFjF7YjLwf6o7O39kbpMn6THMVTtnxbgkjWDc7B2jqh6BfhAvwdgnUf~5XbAdIxnwSv6oUeO0U5S5kjtxUf2u8JonQZLLTXib7WQrOwUqSrlbD1GF98uHDX93fSlwdS5g__&Key-Pair-Id=KUT5TJCACFTXG","author","Minnesota Legislature","date","2025-03-04T20:55:36.27Z","article","The House Tax Committee laid over House File 457, a proposal to create a temporary state tax credit to help convert vacant or underused commercial buildings to housing and other income‑producing uses.

Representative Harter, the bill’s sponsor, described the proposal as “a new tax credit and grant program for expenses incurred in converting buildings from one use to another” and said it was intended to boost housing supply and downtown vitality amid high office vacancy rates.

St. Paul Mayor Melvin Carter testified in support, citing a local study and a downtown vacancy rate “just above 30%” for competitive office space. “The adaptive reuse of vacant office buildings to housing will create jobs, increase housing supply, increase the value of those downtown buildings and the downtown tax base and increase our population downtown,” Mayor Carter told the committee.

Testimony from preservation and development advocates emphasized economic impacts. Erin Hannifenberg of Rithos, a nonprofit advocacy group, said the state historic rehabilitation tax credit — reinstated in 2023 — produced nearly $10.25 of economic activity for every dollar awarded in recent projects and argued a separate credit for non‑historic or newer buildings is needed. Dan Collison, senior director at Sherman Associates, described conversion projects his firm has completed and said the proposed credit would “catalyze private investment and bring new projects and improve tax bases.”

The bill is drafted as a 30 percent credit of qualifying project costs, according to committee staff. Committee members debated affordability and fiscal exposure. Representative Gomez offered an amendment (A13) to add affordability requirements tied to existing TIF affordability tests; supporters argued public dollars should prioritize housing affordability, while developers told the committee that adding a low‑income requirement could make conversions infeasible because low‑income housing tax credit financing is competitive and often favors smaller projects.

On procedure, the committee adopted an A1 amendment to permit insurance companies to claim the credit against the premiums tax. The A13 amendment to add affordability cross‑references failed in a recorded voice vote, and Representative Harter asked that the bill, as amended, be laid over for possible inclusion in the omnibus tax bill.

Committee staff provided a revenue estimate during discussion: the transcript records estimated state revenue impacts roughly in the low tens of millions in early fiscal years and higher in later years, and an analyst noted the historic rehabilitation credit’s fully phased cost is about $60 million; staff also said the bill’s structure and modeling parallel the historic credit. Representative Anderson observed the proposal could amount to paying roughly 30% of redevelopment costs for qualifying projects across the state and urged attention to fiscal scope.

The committee laid House File 457 over for possible inclusion in the omnibus tax bill. Members signaled continued interest in the policy but said concerns about overall cost, caps, affordability safeguards and labor and sustainability standards would merit further work if the bill advances.

Votes at a glance: A1 amendment (allow insurers to claim credit against premiums tax) — adopted by voice vote. A13 amendment (add affordability cross‑reference) — failed on voice vote. House File 457 as amended — laid over for possible inclusion in omnibus tax bill.","mediaType","Video","parentTitle","House Taxes Committee 3/4/25","oneSentenceSummary","House File 457, a proposed tax credit to subsidize conversion of underused commercial buildings into housing, was amended to allow insurers to claim the credit and was laid over. An amendment that would have imposed affordability requirements failed in committee.","taxTitle","2025 Legislature MN, Minnesota","taxId",77817,"location","Minnesota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6652502,"House Tax panel lays over bill to exempt half of in-home childcare property market value",1720,22820,1743750,"/Search/View?dp=1&key=2490546-fd7b36d28b1504c2256a4602e55edad8&start=22&end=1743","https://assets.pipeline.soar.com/2490546-fd7b36d28b1504c2256a4602e55edad8/thumbnail_22820.jpg","/articles/6652502/Minnesota/House-Tax-panel-lays-over-bill-to-exempt-half-of-in-home-childcare-property-market-value","https://secure.pipeline.soar.com/6652502-89e7bc39164d2d794b3cf6c08855376a/orig.mp4?Expires=1775850488&Signature=aMtpz4PInr-j4pgIk--cfPjh82iCN-lstQQ2w0DC12jSu0bMA2m0AmgdC5R7qdiUBTDYr~Z5qYLZ0I1oqS6UwhW7kcSkCNlk6pYYpUYrGzlTpn2~adC4TEBumUOHWX~Th82NySR~lCtPCLhqf9VsgAKp-vMIOkqTk9sK09~5DxtSxjE8yWrxf~Su1cmTJaXA0xV1WP9OCZ6UzYNjCdOoCZ493cazVegx5HTRMGQXHfU77~pE3~54OOPn2nKeuKF58SS5r~Rt1tmqCPaS4BxUMru5KIr89IJ2xb7lT4KB5rRnslHgIv8lSxutsIFQR4DBmmE3tIzX-25tliDuNUN14A__&Key-Pair-Id=KUT5TJCACFTXG","The House Tax Committee on Feb. 27 laid over House File 633 for possible inclusion in the omnibus tax bill, a proposal that would create a new property‑tax market‑value exclusion for licensed in‑home family child‑care providers.

Representative Nadeau, the bill’s author, told the committee House File 633 “is a simple direct bill that lowers costs for family care providers. It reduces childcare wait times and it builds child care early learning system capacity.” The bill would reduce the taxable market value of qualifying properties by 50 percent, the author said.

The proposal drew sustained questions from committee members about whether the exclusion would actually lower childcare prices and how the state would prevent abuse. Representative Hansen asked, “what about in this bill is gonna guarantee that the people receiving this benefit are going to reduce the cost of childcare by receiving this particular benefit?” Representative Nadeau responded, “I can't guarantee that… All this bill does is… create a better environment for in home family care providers to function.”

Committee members repeatedly pressed on auditability and minimum‑service standards. Representative Hansen and Representative Elkins said the bill contains no minimum‑enrollment requirement and suggested adding limits or audit controls; Elkins noted his work on a fraud prevention committee and said “we need some way of being able to audit are these people really providing childcare that they're applying for.” The author said licensure remains the responsibility of the department and “the auditability component is outside of that.”

Members also asked about local government impacts. Representative Hewitt raised concerns that the exclusion would shift property‑tax burden onto other taxpayers and asked whether counties would need to cut services. The author acknowledged the share shift and said the fiscal note estimates there are about 5,400 licensed in‑home providers who could be affected and that he would consult Hennepin County to provide a local impact analysis.

The committee record includes the bill’s fiscal and programmatic claims cited by the author: state counts of licensed providers declined from more than 12,000 in 2011 to roughly 5,782 active licenses as of the first of the year; a cited market‑rate example said infant care averaged $16,164 per year in 2021; and the author estimated the exclusion would lower provider costs by about $9.8 million and reduce state paid property‑tax refunds by about $2.9 million. The bill text also references Minnesota Statutes 272.02 in explaining existing property tax classifications and cites a court case, Rainbow Early Education Center v. Goodhue County, in past exemption precedent.

After discussion the author renewed a motion to lay over House File 633 for possible inclusion in the omnibus tax bill; the motion was laid over. The committee did not adopt amendments or take a final vote on enactment. The author said he will follow up with county impact information and other clarifications as the bill moves through committee.

Votes at a glance: House File 633 — laid over for possible inclusion in omnibus tax bill (motion renewed by the author and carried by voice vote).","The House Tax Committee laid over House File 633, a proposal to create a 50% market-value property tax exclusion for licensed in‑home family child‑care providers, after extended questioning about auditability and county revenue impacts.","actionData","errors"]

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Committee lays over bill to give 30% tax credit for converting vacant buildings to housing; amendment on affordability fails

House Tax panel lays over bill to exempt half of in-home childcare property market value