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Minnesota Bill Would Create State NMTC Worth 50% of QEIs

Thursday, February 16, 2023 - 2:30PM

Legislation introduced in the Minnesota House of Representatives would create a state new markets tax credit (NMTC) worth 50% of qualified equity investment (QEI). H.F. 1528 would allow $60 million in allocation to metropolitan counties and $60 million in non-metropolitan counties. There would be a maximum of $10 million investment in a single qualified active low-income community business (QALICB). Taxpayers could claim 10% of the credit for five consecutive years beginning with Year 3 after the investment. The credit would be effective for taxable years beginning after Dec. 31, 2023, and the QEIs would be required to be made by Jan. 1, 2026, with the credit expiring for taxable years beginning after Dec. 31, 2031.

State credits and other factors in the capital stack will be discussed at the Novogradac 2023 Spring New Markets Tax Credit Conference, June 8-9, in Washington, D.C.

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