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SF2115 (Legislative Session 94 (2025-2026))

Second assignment of the historic structure rehabilitation credit permission

Related bill: HF2142

AI Generated Summary

This bill proposes modifications to Minnesota's historic structure rehabilitation tax credit (section 290.0681). Key changes include:

  1. Second Assignment of Credit: Allows for a second assignment of the historic structure rehabilitation credit, making it more transferable.

  2. Changes to Allocation Certificates: Adjustments to requirements for issuing allocation certificates, including:

    • Applications must be submitted before rehabilitation begins.
    • A fee (up to 0.5% of qualified expenditures, capped at $40,000) may be collected to cover administrative costs.
    • Allocation certificates will verify eligibility and specify the anticipated credit or grant amount (100% of the federal credit for tax credit applicants; 90% for those opting for a grant).
    • Allocation certificates may reflect adjustments to the credit amount if the federal credit received differs from initial projections.
    • Taxpayers or grant recipients will receive one-fifth of the total credit or grant when the project is placed in service, provided it occurs within three years of certificate issuance.

  3. Eligibility & Legal Review:

    • The office, in consultation with the commissioner, will determine eligibility, subject to review and audit.
    • Federal credit recapture rules do not apply to this state credit.
    • Decisions on eligibility can be contested within 45 days under Minnesota's administrative procedure laws.

This bill aims to streamline the process for developers applying for historic rehabilitation credits while enhancing the flexibility of credit assignments.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 02, 2025SenateFloorActionIntroduction and first reading
March 02, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies the process for second assignment of the credit."
      ],
      "removed": [
        "Previously required application details that have now been simplified."
      ],
      "summary": "This bill modifies requirements for the historic structure rehabilitation credit under section 290.0681.",
      "modified": [
        "Adjustments in allocation certificate issuance related to federal credit anticipation."
      ]
    },
    "citation": "290.0681"
  },
  {
    "analysis": {
      "added": [
        "A statement that federal credit recapture rules do not apply to the state credit."
      ],
      "removed": [],
      "summary": "The bill addresses the non-applicability of federal credit recapture rules under section 50 of the Internal Revenue Code to the state's credit system.",
      "modified": []
    },
    "citation": "50 of the Internal Revenue Code"
  }
]

Sponsors