HF177

HF177 (Legislative Session 94 (2025-2026))

Refundable construction tax exemption provided for construction of new single-family residential housing for first-time homebuyers.

Related bill: SF2171

AI Generated Summary

This bill, brought before the Minnesota House of Representatives, seeks to provide a tax exemption for constructing new single-family homes specifically designed for first-time homebuyers. Under this proposed legislation, the materials, supplies, and equipment used in the construction of these homes would be exempt from sales and use tax. The exemption is applicable only up to the first $460,000 of the construction cost. Initially, taxes will be collected as usual during the purchase of these items but will be refunded later under specified conditions. This tax exemption is set to expire on July 1, 2033.

Bill text versions

Introduction PDF file
1st Engrossment PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 09, 2025	House	Floor	Action	Introduction and first reading, referred to	Taxes
February 12, 2025	House	Floor	Action	Author added
February 19, 2025	House	Floor	Action	Motion to recall and re-refer, motion prevailed	Housing Finance and Policy
February 26, 2025	House	Floor	Action	Committee report, to adopt as amended and re-refer to	Taxes
March 11, 2025	House	Floor	Action	Author added

Citations

[
  {
    "analysis": {
      "added": [
        "A new subdivision providing a tax exemption for materials used in the construction of new single-family homes for first-time buyers."
      ],
      "removed": [],
      "summary": "This bill amends Minnesota Statutes 297A.71 by adding a new subdivision for construction material tax exemptions.",
      "modified": []
    },
    "citation": "297A.71"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill modifies existing tax refund procedures under section 297A.75.",
      "modified": [
        "Clarifies application of tax refund process for exemptions under the new subdivision added to section 297A.71."
      ]
    },
    "citation": "297A.75"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references section 297A.62 in the context of setting tax rates for the application of refunds.",
      "modified": [
        "Confirms that tax rates under 297A.62 apply before calculating exemptions."
      ]
    },
    "citation": "297A.62"
  }
]