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Committee forwards changes to state housing tax credit, including workforce pairing and geographic balance
Summary
Senators adopted the sponsor's amendment to SF 40-44 and recommended the measure to the Committee on Taxes; the bill pairs the state housing tax credit with workforce housing programs, adds geographic balance between metro and greater Minnesota, and removes the program sunset.
The committee adopted an author’s amendment and recommended passage of legislation that modifies Minnesota’s State Housing Tax Credit program.
Senator Nelson, sponsor of SF 40-44, said the bill will allow the credit to be paired with the Workforce Housing Development Program, add language to ensure a geographic split between the seven‑county metro and greater Minnesota, and remove the program’s automatic sunset so it can be reviewed on a scheduled cycle by the Tax Expenditure Review Committee.
Supporters — including the Minnesota Housing Partnership, Habitat for Humanity, nonprofit developers and regional housing partnerships — described the credit as rapidly oversubscribed and effective at leveraging private contributions. Courtney Schaaf of the Minnesota Housing Partnership said one recent application round received more than $15 million in contribution requests in under two hours, far above the $9.9 million cap.
Committee members asked about reporting and the program’s review cycle; sponsors noted the tax expenditure review process conducts periodic evaluations. The committee recommended SF 40-44, as amended, to the Committee on Taxes by voice vote.
