[{"_1":2,"_112":-5,"_113":-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",[32,76,88,100],{"_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",6621952,"mediaKeyId","2793762-db21f095420955c3b4c62e8e52c23fd5","parentId",2793762,"title","Committee hears proposal for 30% 'CUB' credit to convert underutilized buildings into housing and other uses","audioSeconds",2949,"startMs",1702825,"endMs",4651900,"viewUrl","/Search/View?dp=1&key=2793762-db21f095420955c3b4c62e8e52c23fd5&start=1702&end=4651","thumbnailUrl","https://assets.pipeline.soar.com/2793762-db21f095420955c3b4c62e8e52c23fd5/thumbnail_1702825.jpg","articleUrl","/articles/6621952/Minnesota/Committee-hears-proposal-for-30-CUB-credit-to-convert-underutilized-buildings-into-housing-and-other-uses","mediaUrl","https://secure.pipeline.soar.com/6621952-a1bf6363685a64d0e0fed2e13670f2c2/orig.mp4?Expires=1775449041&Signature=R39ak6MotVKrzDB8USBUI7XjGHo2YL67klkFo4touLS2x5iFWtMe77xBtkyMt8bEkLU~t1rxlD8OIcNVwtDXQXZff2AdPNicugXWq87IfTA58aONjkzpXad69e0BbtBdu5zzYVWv6Icz3VMIpyWJXdL48NGn0khbQC94oQj8niVU6PLKziEGFh0QKFEQqktIJgOD7RxIqgIC66F6~F3XVCwcK4yyK5HgR4gDOQA-Veqv5JvNskgykW-QlXP3HzvEEcfVmmH7e0q4FyXVRzxErZKA-VkqMXZgeuohpDGAEVzzDM7PMfwovVJa7bK6nm2nbW9gEBzj2bBsn71PYyuefg__&Key-Pair-Id=KUT5TJCACFTXG","author","Minnesota Legislature","date","2025-03-27T15:41:49.017Z","article","Senate File 768 (the \"CUB\" credit, for Catalyzing Underutilized Buildings) would create a new tax credit or grant equal to 30% of qualifying conversion expenses for eligible projects that repurpose underutilized buildings. The committee adopted an A‑1 amendment by voice vote and laid the bill over for further consideration after substantial testimony from developers, municipal leaders, labor representatives and nonprofit groups.

Under the bill text presented to the committee, key provisions include: applicants must file with the commissioner of deed before a conversion begins; the commissioner may charge application fees of up to 1% of estimated qualifying conversion expenses to offset administrative costs; the commissioner issues an allocation certificate and later a credit certificate or grant after the project is placed in service; credits may be assigned and must be reported to the commissioner within 30 days of assignment; the credit is refundable and the bill appropriates from the general fund amounts necessary to pay refunds and grants. The program would expire after fiscal year 2031 but the commissioner may issue credit certificates through 2035 based on allocation certificates issued before fiscal year 2032.

Senator Mohammed, the bill sponsor, described the credit as a tool aimed at converting vacant or underused commercial buildings into housing and other productive uses to address a shortfall of approximately 100,000 housing units statewide and to stabilize local tax bases. \"This bill responds directly to the current market realities,\" he said, citing shifts in office and retail demand since the COVID‑19 pandemic.

Supporters from the development and preservation communities argued the credit could unlock financing for projects that otherwise would not be viable in the current interest‑rate and construction‑cost environment. Chris Sherman, president of Sherman Associates, said the policy would catalyze conversions and cited case studies where assessed values increased substantially after conversion. \"This tool can truly be a catalyst for delivering housing,\" Sherman testified.

Municipal leaders including Minneapolis Mayor Jacob Frey told the committee the city is seeing declines in commercial valuations and that conversions of older buildings are a practical response. \"When those valuations drop, it's not like we don't still need to collect the necessary tax dollars to provide basic city services. We still get them, but we get them from our residential taxpayers,\" Frey said.

Labor witnesses urged protections to preserve good jobs and warned that residential property management often lacks the pay, benefits and protections of unionized commercial jobs. Braheem Kohn, secretary‑treasurer of SEIU Local 26, urged stronger worker standards and affordable housing expectations for projects that receive public support.

Fresh Energy recommended the bill consider enhanced incentives for energy efficiency and electrification to reduce embodied and operational carbon when buildings are converted.

Senator Weber asked about fiscal limits and cited South Carolina's similar program; Senator Mohammed said the bill's financial parameters are still being evaluated and that many elements are scalable. The committee adopted the A‑1 amendment and laid Senate File 768, as amended, over for further review; no final fiscal figure or final enactment was decided in the hearing.","mediaType","Video","parentTitle","Committee on Taxes - 03/27/25","oneSentenceSummary","Senate File 768 (the \"CUB\" credit) would create a 30% tax credit or grant for qualifying conversions of underutilized buildings to housing or other uses; the committee adopted an amendment and laid the bill over after testimony from developers, municipal leaders and labor groups.","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},6621942,"Bill would create seasonal‑recreation replacement aid to reduce referendum tax burden in districts with many cabins",1329,5385505,4056175,"/Search/View?dp=1&key=2793762-db21f095420955c3b4c62e8e52c23fd5&start=5385&end=4056","https://assets.pipeline.soar.com/2793762-db21f095420955c3b4c62e8e52c23fd5/thumbnail_5385505.jpg","/articles/6621942/Minnesota/Bill-would-create-seasonalrecreation-replacement-aid-to-reduce-referendum-tax-burden-in-districts-with-many-cabins","https://secure.pipeline.soar.com/6621942-dfe2137888fe87da431020b5e75b66be/orig.mp4?Expires=1775449041&Signature=FCfnzXrIcgO6uEGxFaJKJPedQm8Vq64PDI-W8wuSipQQLv6~~r5hId03Owc1r~t7ccVD2fCgPSu9eXEcQdmSxIaQvkOxWaAsKrQ8A8PafK6LdCW~a8BApiRR-~gIJ198X9XykFV1LOByzAhYgmCOKQPGq8~IKutIuvL-NW04RAtpG-F58ai-c4Sm4ZSU7mlgkeHWLVyGJDGK7fvohMwLN8qhxpSnC74qvbPWw36irZu0pJF9OMPx3iqks3D6NQc2MCEeLI83s-hk2zMVa-hKy5c7U0pZkYAaiHpPulbVHoirC--fpcF15pyVp-ir5Yxk3YNKJqiaK4QAbzya9IC9gA__&Key-Pair-Id=KUT5TJCACFTXG","Senate File 1197, presented to the Senate Taxes Committee, would establish a seasonal recreation tax‑base replacement aid intended to reduce the local tax effort required to fund voter‑approved operating referendums in school districts with substantial seasonal and recreational property such as cabins. The bill's author told the committee the bill does not change how cabins are taxed but would provide state aid to offset the fact that many seasonal properties are excluded from the local referendum tax base.

Senator Housechild said the proposal targets districts where seasonal recreational residential property represents a substantial portion of market value and can reduce the tax effort required to fund voter‑approved operating levies, in some cases by as much as 50 percent. He described the approach as more targeted and lower‑cost than broad equalization proposals and noted a preliminary state fiscal impact estimate of roughly $8.8 million for an initial year, with larger biennial and multi‑year costs discussed in the hearing.

Students from Crosby‑Ironton High School testified about local funding cuts and the prevalence of vacant housing units in their district. Cadence Wynne told the committee her district has 3,410 of 8,127 dwellings classified as vacant housing units — about 41.9 percent — and said that treating those properties as part of the referendum base would reduce the burden on year‑round residents. \"Approving Senate File 11‑97 would help not only our school and community but also schools and communities in Minnesota that are facing referendums,\" Wynne said.

Gina Clive, superintendent of Lake Superior School District (ISD 381), told the committee the district covers a large geographic area with a high share of seasonal recreational properties and faces roughly $700,000 in budget cuts between FY24 and FY25. Clive said the proposed aid could reduce a hypothetical $600 per‑pupil operating referendum tax rate by about 31.4 percent in her district — roughly $226,000 of a $720,000 referendum — improving the prospects for passage by voters.

Committee members requested district‑level numbers for statewide context and acknowledged the bill has a nontrivial fiscal cost in the state's tax and aid structure. Senators laid the bill over for further consideration and indicated they would return to the proposal with more detailed fiscal analysis and district data.","Senate File 1197 would create seasonal‑recreation tax‑base replacement aid to reduce the local tax effort required for voter‑approved operating referendums in school districts with large shares of seasonal/cabin properties; the bill does not change how cabins are taxed.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6621947,"Panel considers personal property tax exemption for Owatonna peaking plant to keep municipal rates competitive",678,4691395,5369745,"/Search/View?dp=1&key=2793762-db21f095420955c3b4c62e8e52c23fd5&start=4691&end=5369","https://assets.pipeline.soar.com/2793762-db21f095420955c3b4c62e8e52c23fd5/thumbnail_4691395.jpg","/articles/6621947/Minnesota/Panel-considers-personal-property-tax-exemption-for-Owatonna-peaking-plant-to-keep-municipal-rates-competitive","https://secure.pipeline.soar.com/6621947-d29aed6a4b770f506762cb7986517364/orig.mp4?Expires=1775449041&Signature=Hog8Gz6zk3bFLN12sWvtvjur0nxrkxtkTMwYsoRxXBnYz0QFtTk-jJAA66HqmY7vMMtwiVg3lihL3hoQ8A4UjWOdFn41uz0pGfBc83JqQa07l8KLO1MF9lSid953MfjrZgL50wv1wYPAd4kDRaa4gL3jOq-KxhK1PAy6Yr4LYcik1p4YJFWdjFhIMT16K~s-Og1zJSWz0DZxPpAN7zcZ6bcENc~ZI3At0vquOOsBdQgIxXaR3c8N0js52FHKrJYLW1uHJ0fCUG2O0rh3Rf85SuqBFKAU-WhHq43AEsFHtzSefTUD6CgWqTsmSm3fpQXEdAnEBr8KjChvOtuDEAIWKQ__&Key-Pair-Id=KUT5TJCACFTXG","Senate File 2615, presented in the Senate Taxes Committee, would exempt personal property associated with certain electric generation facilities from property taxation or payment in lieu of taxation. The exemption is narrowly defined in the bill draft to apply to generation equipment for facilities between 40 and 50 megawatts that use natural gas as a primary fuel, are owned and operated by a municipal power agency and meet siting and approval requirements.

Senator Jasinski said the exemption request is intended to place the Southern Minnesota Municipal Power Agency's proposed new 49‑megawatt \"Steel Energy Station\" in Owatonna on equal footing with similar generation projects in Minnesota and to help keep electric rates for SMMPA members competitive. The bill requires the facility to be within 1,000 feet of an existing natural gas pipeline, located outside metropolitan areas as defined in statute, satisfy a resource deficiency in an integrated resource plan and receive approval by the city and county governing bodies where it is located. Construction must commence after Jan. 1, 2026 and before Jan. 1, 2028 to qualify under the draft language.

Dave Geschwind, CEO of the Southern Minnesota Municipal Power Agency, told the committee SMMPA is building the plant to replace capacity as larger coal units (Sherco 3) retire in 2030 and to meet reliability obligations when renewables are not available. He noted that the personal property exemption traditionally applies only to generating equipment; other real property and non‑generating equipment remain on the local tax rolls. Geschwind also said Owatonna and Steele County passed local resolutions supporting the exemption.

The committee's fiscal staff presented a revenue estimate indicating there would be no general fund impact; because property taxes are local, the estimate projects a modest shift in property tax refunds of roughly $50,000 in fiscal year 2030 in the planning period discussed. Committee members discussed how static and dynamic scoring assumptions influence such estimates. The bill was laid over for further consideration; no final statewide fiscal or policy decision was made at the hearing.","Senate File 2615 would exempt personal property tied to a proposed 49‑megawatt natural gas peaking plant in Owatonna from local property taxation, subject to siting and timing requirements; supporters say the move would keep municipal power agency rates competitive.",{"_33":101,"_35":36,"_37":38,"_39":102,"_41":103,"_43":104,"_45":105,"_47":106,"_49":107,"_51":108,"_53":109,"_55":56,"_57":58,"_59":110,"_61":62,"_63":64,"_65":111,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6621956,"Senate committee considers extending timeline and transferability for historic rehabilitation tax credit",815,894120,1709825,"/Search/View?dp=1&key=2793762-db21f095420955c3b4c62e8e52c23fd5&start=894&end=1709","https://assets.pipeline.soar.com/2793762-db21f095420955c3b4c62e8e52c23fd5/thumbnail_894120.jpg","/articles/6621956/Minnesota/Senate-committee-considers-extending-timeline-and-transferability-for-historic-rehabilitation-tax-credit","https://secure.pipeline.soar.com/6621956-094ae1b4163db49c07f7acfc1fa0d07f/orig.mp4?Expires=1775449041&Signature=RlbC5-kC~9fB~2aczwpgBFl8LPp3oYu~pWLYI8KPb33h7Pv9UEZO5EJirUmqyO9QLyZaBN-IoPA5Wb1VjDR2A8QQ39choCJzb7j-mHUQs0NEQlZRiyddJTUANdiBzZDtVZSel0gy2SR3T6QQ6XFNt2mvMvil9Tg2svzp6G19DJKmnmiUUU1mAPMUvddV7tzx0dCEN4B08TDq-2bjEqeeiPKaNYsNbUsKVUEnjR~zAQ3czOcmEjjhEHjDXKtLj3ssU5Hr~Db55oAkL9OH-mxgL7JXhlRd~1rMliKiivTdr295BuS6CF~F5n30NAFFixEr1mEwGPre1x~fZ98lam~ZSw__&Key-Pair-Id=KUT5TJCACFTXG","Senate File 2115, introduced in the Minnesota Senate Taxes Committee, would change two features of the state's historic rehabilitation tax credit: it would extend the required placement‑in‑service deadline for projects from three years to six years and allow an additional assignment of credit certificates before the first assignee claims payment. The committee adopted the author's amendments by voice vote and laid the bill over for further consideration.

The author's amendment makes the extended placement‑in‑service period effective retroactively for projects with allocation certificates issued after June 30, 2021. The bill's second change permits an assignee to transfer the credit in whole to a second assignee prior to the first assignee's payment claim and requires the original certificate recipient and each assignee to file a tax return for the year the project is placed in service.

\"This bill makes two changes...it changes the deadline from three to six years and as my testifier will explain this three year deadline is increasingly causing issues,\" Senator Clark said when presenting the bill on the Senate floor.

John Green, a senior project manager with AWH Architects who works primarily on historic buildings, testified that large rehabilitation projects often require phased work and extended coordination with the State Historic Preservation Office and the National Park Service. He described a recent Duluth Central High School project converting a 160,000‑square‑foot school into apartments and said the current three‑year rule can present a financing and compliance risk for multi‑phase projects.

Senator Drazkowski asked whether assignment provisions in tax credit programs had previously been exploited for fraud and whether SF 2115 could create vulnerabilities. \"I am unaware of any,\" Senator Clark replied, stressing the change was intended to make the credit more usable for investment partners. Committee members also noted the University of Minnesota's annual analysis of the historic tax credit, which the author included in the bill packet.

The committee adopted the listed amendments by voice vote. Senate File 2115 as amended was laid over for further consideration; no final action or roll‑call vote on adoption of the bill itself was recorded in the hearing transcript.","Senate File 2115 would extend the placement‑in‑service window for the state historic rehabilitation tax credit from three to six years, allow a second reassignment of credits, and requires returns from original and assigned certificate holders; the bill was amended and laid over for further consideration.","actionData","errors"]

Article not found

Committee hears proposal for 30% 'CUB' credit to convert underutilized buildings into housing and other uses

Bill would create seasonal‑recreation replacement aid to reduce referendum tax burden in districts with many cabins

Panel considers personal property tax exemption for Owatonna peaking plant to keep municipal rates competitive

Senate committee considers extending timeline and transferability for historic rehabilitation tax credit