Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Renter Credit topic
No spam. Unsubscribe anytime.
Lawmakers debate raising renter’s credit to match homestead refund; bill laid over
Summary
Representative Lee and housing advocates urged expansion of Minnesota’s renter’s credit (House File 2499) to increase income cutoffs and raise the maximum credit to parity with the homestead credit; committee laid the bill over for possible inclusion amid questions about rent pass-through and outreach to renters.
House File 2499, sponsored by Representative Lee, would increase the renter’s credit to align with the homestead property tax refund by (1) raising the income cutoff to match the homestead threshold and (2) increasing the maximum renter’s credit to $3,500 (from the current $2,640), producing nearly twice the household income cutoff and adding an estimated 80,000 additional renter households that would qualify, according to the revenue note referenced in committee materials.
Representative Lee said the 2023 changes made the renter’s credit a refundable income-tax credit filed with the state income-tax return. She said the change simplified filing and increased expected participation. Nan Madden, director of the Minnesota Budget Project, and Michael Dahl, public-policy director for Homeline (a statewide tenant-advocacy organization), testified in favor, saying many renter households are low-income, including seniors and people with disabilities, and that the credit helps families cover necessities.
Members asked whether landlords could simply raise rents in response to larger credits. Representative Lee and other supporters said evidence is mixed and that the renter’s credit is targeted to low-income households; they also described outreach efforts and administrative improvements (electronic certificates of rent paid, inclusion on tax forms, VITA and tax-prep support) that should increase uptake. Department of Revenue outreach and partnerships with community organizations were discussed as part of the bill’s implementation considerations.
Representative Lee renewed her motion to lay the bill over for possible inclusion in the 2025 omnibus tax bill; the motion carried by voice vote.
