Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF768

Introduced
1/30/25  

Caption

Underutilized buildings conversion refundable tax credit proposal, sunset for the credit provision, and appropriation

Impact

The bill outlines that to qualify, a project must retain a significant portion of existing building structures and demonstrate a substantial transformation of use. It specifically targets buildings that have been vacant for at least five years or those with significant renovations. Upon successful completion of the project, developers can apply for the tax credit or a grant, providing the potential for economic revitalization in underperforming areas, alongside sustainability by encouraging the reuse of existing resources rather than new construction.

Summary

SF768 proposes a refundable tax credit aimed at promoting the conversion of underutilized buildings in Minnesota. It allows property developers and owners to claim a credit equal to 30 percent of qualifying conversion expenses incurred on projects that meet specific criteria, such as converting long-vacant structures or repurposing them for new commercial uses. This initiative is introduced in response to the growing concern over the number of vacant properties and the potential economic benefits of revitalizing these structures.

Contention

However, discussions around SF768 highlight some points of contention, particularly regarding the administrative aspects of the bill. Critics may express concerns over the potential complexity of the application process and the timeline required to meet the qualifications. They fear that the projects might not deliver anticipated benefits if developers find it challenging to navigate these requirements or if the credits are not adequately communicated to potential applicants. Additionally, stakeholders will have a chance to voice their opinions in public hearings to address these issues and fine-tune the implementation of this program.

Companion Bills

MN HF457

Similar To Refundable sales and use tax credit proposed for conversion of underutilized buildings, grants in lieu of the credit allowed, credit sunset proposed, and reports required.

Previously Filed As

MN SF5194

Refundable credit proposal for conversion of underutilized buildings

MN HF5191

Refundable income tax credit proposed for conversion of underutilized buildings, grants in lieu of credit allowed, sunset for credit proposed, and reports required.

MN SF45

Property tax refund program conversion to a refundable income tax credit authorization

MN HF1653

Property tax refunds and individual income tax provisions modified, and renter's credit converted to refundable income tax credit.

MN SF4261

Additional property tax refund conversion into a refundable income tax credit authorization

MN SF1512

New markets tax credit proposal

MN HF167

Individual income tax provisions modified, and refundable tax credit proposed for tax years 2021 and 2022.

MN HF3230

Refundable sustainable aviation fuel tax credit and related sales tax exemption established.

MN HF2960

Refundable sustainable aviation fuel tax credit and related sales tax exemption established.

MN SF2753

Refundable sustainable aviation fuel tax credit and related sales tax exemption establishment

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