A state program that allows tax credits in exchange for contribution to housing projects is off to a good start.
The Minnesota State Housing and Tax Credit was first offered a year ago. Contributions go directly toward housing projects in exchange for tax credits.
"What we saw, a lot of progress in a short amount of time last year, and we're going to just see that sort of snowball and pick up more momentum," says DFL State Representative Mike Howard of Richfield. "It's a program that is working and the more we kind of prove the concept, the more support we can build at the legislature to put more investment into this. Which I think is absolutely warranted."
The deadline to make a qualifying contribution is 5:00 p.m. on December 6th. About half of the $11.6 million awarded to the program is still available.
The State Housing Tax Credit Program and Contribution Fund (SHTC Contribution Fund) helps finance housing that is affordable throughout the state of Minnesota. Eligible Minnesota taxpayers can contribute to the contribution fund and, in return, receive a state Tax Credit Certificate.
Individuals and businesses who pay state taxes and meet eligibility requirements can contribute anywhere from $1,000 to $2 million per year. The program provides a tax credit of 85 percent of the contribution amount, so if you donate $1,000 to the Fund, you receive an $850 credit to offset your Minnesota taxes.
“Every organization that builds affordable housing in their community struggles to gather all of the needed resources, and it can take years to fund and begin construction,” said Paul Williams, president and CEO of Project for Pride in Living (PPL). “The funds received through SHTC contributions serve as a bridge, helping projects get in the ground a little faster. We appreciate how it empowers individuals and corporations to give either to specific projects or to a general pool, and their gifts are put immediately to work.”
Eligible uses of funds include new construction, acquisition, rehabilitation, and demolition or removal of existing structures. You can find more information on the program here.
