Individual income tax provisions modified, corporate franchise tax provisions modified, and historic structure rehabilitation credit modified.
Impact
The bill will impact state laws by potentially increasing the number of rehabilitation projects, as the modifications to the credit structure are designed to make it more appealing for developers. By offering up to 100% credit against income taxes for historic structures and allowing insurance companies to claim credits against insurance premium taxes, HF1488 aims to stimulate economic development while preserving Minnesota's historical architecture. The amendments also include provisions for administrative costs associated with the program, which could streamline the application process for developers.
Summary
HF1488 is a legislative bill concerning modifications to individual income tax provisions, corporate franchise tax provisions, as well as adjustments to the historic structure rehabilitation credit in Minnesota. Primarily, the bill aims to enhance the financial incentives for the rehabilitation of historic structures by amending existing statutes related to tax credits and grants. The proposed changes include modifications to the credit calculations and the conditions under which developers can claim these benefits, thereby encouraging investment in the restoration of historic buildings.
Contention
While proponents of HF1488 highlight the potential economic benefits of restoring historic structures, there is notable contention surrounding the administrative processes proposed in the bill. Concerns were raised regarding the application fees that could place a financial burden on smaller developers or non-profits looking to undertake these projects. Additionally, debates have emerged about the long-term implications of such tax modifications on state revenue, with some legislators fearing that the financial benefits may not outweigh the initial loss in tax income, thereby impacting overall state funding for public services.
Income and corporate franchise taxes; second assignment of historic structure rehabilitation credit allowed, and requirements for issuing allocation certificates modified.
Individual income tax provisions modified, corporate franchise tax provisions modified, film production credit modified, allocation increased, and sunset repealed.
Individual income taxes, corporate franchise taxes, sales and use taxes, and other various taxes and tax-related provisions modified; various policy and technical changes made; income tax credits and subtractions modified; and enforcement, return, and audit provisions modified.
Wage credits modified and reimbursement provided, general fund transfers authorized, unemployment insurance aid provided, report required, and money appropriated.
Governor's budget bill for early childhood programs; child welfare and child care licensing provisions modified; technical changes to early childhood law made; Department of Children, Youth, and Families recodification updated; and money appropriated.