New tax credit program supports affordable housing

Minnesota’s new tax credit program is aimed at supporting affordable housing throughout the state with tax incentives for those who contribute to affordable housing. Through the amazing new State Housing Tax Credit Program and Contribution Fund, taxpayers receive tax credits for contributing to either a registered housing project or the state housing contribution fund. The program is funded entirely by taxpayer contributions.

When taxpayers contribute to a project or the fund, they qualify for a state tax credit of 85% of the contribution! Habitat for Humanity South Central Minnesota currently has two housing projects that qualify for funding through the new program in North Mankato and St Peter.

FAQs:

Who can contribute?
People or businesses that pays Minnesota taxes and meets eligibility requirements can contribute.

How much can I contribute?
To qualify for the tax credit, contributions must be at least $1,000 and cannot exceed $2 million each tax year.

How much is the credit?
You may be eligible for a state tax credit of 85% of the contribution.

How do I contribute?
To contribute to the State Housing Tax Credit Program and Contribution Fund, you will need to fill out an application.
After you submit your application and your application is accepted, you will:

  • Receive an email with documents to sign
  • Submit your contribution following the instructions contained in the email
  • Receive a tax credit certificate
  • Minnesota Housing issues within 30 days of receiving the signed documents and funds

If your application is not accepted, you will be notified with the reason why your application was declined.

What happens to my contribution?
Contributions will be used to develop and fund affordable housing throughout Minnesota.
Your contribution can go into a general housing fund. These contributions can be awarded to cities, federally recognized American Indian tribes, developers, nonprofits, public housing authorities and more.
You can also opt for your contribution to be awarded to a qualified project.

Questions?
To learn more and apply, visit mnhousing.gov and search for contribution fund. You can also email questions to statehtc.mhfa@state.mn.us.

Leave a Reply

Your email address will not be published. Required fields are marked *