WeVote
Log In

Bill

Bill

HF 457

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.

2025-2026 Regular Session Introduced by Bobbie Harder and 6 co-sponsors

Minnesota bill creates refundable tax credits and grants for converting underutilized buildings, with sunset and reporting provisions to track program effectiveness.

Author added Myers
#realestate #taxation-income
0
WeVote Research Nonpartisan
Bill Summary · HF 457

Legislative bill overview

HF 457 establishes a refundable sales and use tax credit for businesses that convert underutilized buildings into productive use. The bill allows the state to issue grants in lieu of tax credits for eligible projects and includes a sunset provision requiring the program to expire after a set period. Regular reporting requirements are mandated to track program performance and outcomes.

Why is this important

This legislation aims to incentivize urban redevelopment and adaptive reuse of vacant or underutilized commercial properties, potentially revitalizing neighborhoods and reducing urban blight. The program could generate economic activity, create construction jobs, and increase property tax bases, though it represents a direct cost to the state treasury through foregone tax revenue or direct grant expenditures.

Potential points of contention

  • Fiscal impact: The refundable credit and grant alternative represent significant state expenditure; lawmakers may debate whether the economic benefits justify the cost and whether funds could be better allocated elsewhere
  • Definition ambiguity: "Underutilized buildings" lacks precise definition, creating uncertainty about project eligibility and potential for subjective approval decisions
  • Accountability and effectiveness: The program lacks detailed performance metrics in the bill summary, raising questions about whether reporting requirements will adequately measure return on investment and prevent misuse

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

Sign in to ask a question.