Minnesota Legislation Would Create State NMTC Worth 50% of QEIs

Thursday, March 10, 2022 - 12:45PM

Legislation introduced in the Minnesota Senate this week would create a state new markets tax credit (NMTC) incentive worth 50% of qualified equity investments (QEI) up to double the QEI authority for the federal NMTC. Under S.F. 3879, the annual statewide cap would be $50 million for metropolitan counties and $50 million for nonmetro counties. The state NMTC would be taken over seven years, with no credit earned in the first two years and 10% per year taken over Years 3-7. The state NMTC would be effective for taxable years beginning Jan. 1, 2023 and have a sunset date of Dec. 31, 2030.

Learn more about the interaction of state and federal NMTC incentives at the Novogradac 2022 Spring New Markets Tax Credit Conference, June 9-10 in Washington, D.C.

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