Bill
HF 2360
Creates a Minnesota New Markets Tax Credit program to spur private investment in underserved areas.
Summary of bill information
- Bill Number: HF 2360
- Title: New markets tax credit established, report required, and money appropriated
- Status: Author added Warwas (as of 2025-04-01)
- Introduced: March 13, 2025
- Referred to: Taxes
- Related Bill: SF 2327 (companion)
Overview and purpose
HF 2360 would create a Minnesota New Markets Tax Credit program by establishing a state-level tax credit mechanism intended to promote private investment in underserved or economically distressed areas within Minnesota. The bill also requires reporting to the Legislature and provides for appropriations to support the program’s implementation and administration.
What the bill would do (key provisions, as indicated by the title and known actions)
- Establish a Minnesota New Markets Tax Credit program.
- Create and authorize a state tax credit to encourage private investment in designated community development projects.
- Define the framework for eligibility, allocation, and administration (exact details would be in the bill text).
- Require a report.
- Mandate reporting to the Legislature (and/or relevant committees) on program design, performance, and impacts (e.g., requested data, evaluation metrics, and timelines for reporting).
- Appropriate funds.
- Provide appropriations to fund the establishment, administration, and ongoing operation of the program (including potential administration costs, oversight, and related activities).
Who would be affected
- Investors and financial entities seeking to claim the state tax credit.
- Qualified community development projects and developers seeking capital in Minnesota’s underserved areas.
- Minnesota state agencies responsible for tax administration, program oversight, and reporting to the Legislature.
- Local communities in areas targeted for investment, potentially benefiting from economic development and revitalization initiatives.
- Taxpayers and the overall state budget, depending on the net revenue impact of the credits and the level of appropriation.
Procedural and timeline aspects
- Introduced: March 13, 2025.
- Legislative action: Referred to the Taxes committee.
- As of 2025-04-01, the author was updated to include Warwas.
- Related legislation: SF 2327 in the Senate serves as the companion bill.
Potential impact and considerations
- Fiscal: The bill would require an appropriation to implement and administer the NMTC program, with potential reductions in state tax revenue proportional to credits claimed (subject to eventual legislative and fiscal analysis).
- Economic development: If enacted, the NMTC program could mobilize private investment into Minnesota communities that need economic revitalization, potentially expanding job creation and local development.
- Administrative: Establishment of criteria, verification, monitoring, and annual or periodic reporting would shape how effectively the program operates and measures outcomes.
Next steps
- Monitor committee hearings and amendments in Taxes.
- Review the bill’s full text for specific credit rates, eligible activities, project definitions, geographic targeting, sunset provisions, and reporting methodology.
- Compare HF 2360 with its Senate companion SF 2327 for alignment and potential differences.
Compiled from official sources — confirm details with the bill’s official record.
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