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HF 2715

Homestead credit refund co-pays reduced.

2025-2026 Regular Session Introduced by Brad Tabke

HF 2715 lowers homeowners’ co-pays, raises income thresholds, and sets inflation-adjusted maximum state refunds for the homestead credit, with eligibility tighter at higher incomes

Introduction and first reading, referred to Taxes
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WeVote Research Nonpartisan
Bill Summary · HF 2715

Bill Summary – HF 2715 (2025-2026 Session, Minnesota)

Purpose and intent

HF 2715 seeks to modify the homestead credit refund provisions in Minnesota’s property tax system. The core goal is to reduce the amount of co-pays that homeowners must contribute toward their property tax refunds, by adjusting income thresholds, the share paid by claimants, and the maximum state refund amounts. The bill also introduces inflation-adjustment mechanisms for the relevant thresholds and funding.

Key provisions and changes

  • Section 1: Amendments to 290A.04, subdivision 2 (Homestead credit refund)

    • Replaces the existing income thresholds and cost-sharing percentages with new values.
    • Household income bands are revised upward in many cases (e.g., from $0–$2,079 to $0–$2,199; $3,310 range replaced by $3,500, etc.).
    • New cost-sharing percentages for claimants:
    • The portion of property taxes payable covered by the claimant (the co-pay) is reduced compared to prior language:
      • For the lowest income levels, the claimed percentage is set at 1.0% and then 1.1%, 1.2%, etc., up to 2.5% for higher income bands. The description indicates a shift from prior higher co-pay percentages (e.g., previously 12%, 10%, 15%, etc., depending on band) to significantly lower claimant-paid percentages (e.g., 10% or lower in many bands; actual formatting shows a transition to “Percent Paid by Claimant” values of 10%, 15%, 20% in some bands, but the final text emphasizes lower co-pays in many ranges).
    • Maximum state refund amounts: The maximum state refunds are shown as fixed dollar values per income band (e.g., $3,500 in several bands) after accounting for the claimant’s share. The exact dollar figures are presented in the table, with amounts resetting at each income band.
    • Income threshold for eligibility: There is a cap introduced beyond which no payment is allowed. The bill changes the cutoff from $135,410 to $143,140 (i.e., households with income at or above this threshold would not receive a refund).
    • Effective date: The changes apply to refunds based on property taxes payable after December 31, 2025.

  • Section 2: Amendments to 290A.04, subdivision 4 (Inflation adjustment)

    • The commissioner must annually adjust the income thresholds and maximum refunds in subdivision 2, using the same framework as section 270C.22.
    • Effective date: Adjustments apply to refunds based on property taxes payable after December 31, 2026.

Who is affected

  • Homeowners/claimants who qualify for the homestead credit refund will experience changes in:
    • The income thresholds used to determine eligibility and refund size.
    • The claimant’s required co-pay (percentage of property taxes payable the claimant must contribute).
    • The maximum possible state refund per income band.
  • State and local administration: The Department of Revenue (commissioner) would implement annual inflation adjustments and administer the revised refund calculations.

Procedural and timeline aspects

  • Introduction and referral: HF 2715 was introduced and referred to the House Taxes Committee on March 24, 2025.
  • Effective dates:
    • Section 1 changes become effective for refunds based on property taxes payable after December 31, 2025.
    • Section 2 (inflation adjustments) changes become effective for refunds based on property taxes payable after December 31, 2026.
  • Inflation mechanism: Annual adjustments aligned with the state inflation framework (section 270C.22) to keep thresholds and maximum refunds aligned with cost-of-living changes.

Notes

  • The bill modifies substantial portions of the homestead credit refund structure, notably reducing the claimant co-pay and updating eligibility thresholds, with inflation-adjusted upside over time.
  • The text includes a detailed table of income bands and corresponding percentages, maximum refunds, and eligibility cutoffs. The exact numeric values are critical for precise calculation and should be reviewed in the bill text for implementation.

If you’d like, I can provide a plain-language example of how a hypothetical household would calculate the refund under HF 2715 versus current law.

Compiled from official sources — confirm details with the bill’s official record.

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