HF 3902 Minnesota House · 2025-2026 Regular Session

Eligible recipients for Minnesota housing tax credit contributions modified, and credit sunset repealed.

This bill modifies Minnesota's housing tax credit program by updating who can receive funding and removing a previous expiration date for the credit. It clarifies definitions for key terms like "Greater Minnesota" and "qualified project," while establishing rules that reserve a portion of tax credits for projects in rural areas based on population percentages. The legislation also strengthens anti-abuse provisions by defining disqualified individuals and businesses who cannot receive grants or loans if they or their associates have already contributed to the housing tax credit account. These changes take effect for taxable years beginning after December 31, 2026, and aim to ensure fair distribution of housing development funds across the state.

Bill status in committee 1 of 4 stages cleared

Introduction

Mar 2026

Committee Review

Floor Vote

Governor

Introduced Mar 2, 2026 Last action Mar 9, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduction → 1st Engrossment · 5 edits · Mar 9, 2026

MODERATE

This bill was updated from its introduction to its first engrossment version, incorporating significant changes to the housing tax credit program. The primary updates include expanding the list of repealed statutes to ensure consistency, adding new definitions for key terms like 'Greater Minnesota' and 'Metropolitan area', and establishing a specific formula to reserve a portion of tax credits for projects in rural areas based on population. Additionally, the effective date for these provisions was set to apply to taxable years beginning after December 31, 2026.

Scope change

The bill's scope was expanded to include the repeal of an additional statute (290.0683, subdivision 7) that was not listed in the original introduction, ensuring all conflicting laws are removed. The applicability of the new rules regarding rural credit allocation is now explicitly defined by population percentages.

TECHNICAL

The bill title and version were updated from 'Introduction' to '1st Engrossment', and the posting date was changed from March 2 to March 9, 2026.

SCOPE

The list of repealed statutes was expanded to include Minnesota Statutes 2024, section 290.0683, subdivision 7, which was not in the original version.

DEFINITION

New definitions were added for 'Greater Minnesota', 'Metropolitan area', 'Population', and 'Qualified project' to clarify the bill's terms.

REQUIREMENT

A new requirement was added to reserve a percentage of tax credits for projects in Greater Minnesota, calculated based on the state's population distribution.

TIMELINE

An effective date clause was added, specifying that the new provisions apply to taxable years beginning after December 31, 2026.

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Full legislative history

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Key actions

Committee

Mar 9, 2026

Lower · Passed

Committee report, to adopt as amended and re-refer to Taxes

lower

Mar 2, 2026

Introduced

Introduction and first reading, referred to Housing Finance and Policy

lower

1 primary · 0 co-sponsors