If you're a tax-savvy Minnesotan, don't miss this amazing opportunity! Thanks to the newly created State Housing Tax Credit (SHTC) and Contribution Fund, you can support housing development projects across the state and get a tax credit of 85% of your contribution.
Be sure to act quickly—the deadline to contribute for this year is December 8, 2023 (extended to December 13, 2023!).
Individuals and businesses who pay state taxes and meet eligibility requirements can contribute anywhere from $1,000 to $2 million. The Fund provides a tax credit of 85% of the contribution. For example, if you contribute $1,000 contribution, that would amount to $850 in tax credit.
The Minnesota Legislature created the Housing Tax Credit Program and Contribution Fund as a new way to help finance affordable multifamily and single-family housing throughout the state. SHTC is entirely funded with eligible Minnesota taxpayer contributions.
Prospective contributors must fill out an online application through Minnesota Housing. Applications for 2023 contributions must be completed by December 8, 2023 (extended to December 13, 2023!). The Fund hopes to raise $11.6 million this year.
Former Minnesota Housing Commissioner, Mary Tingerthal, is working with several organizations to make sure that people know about this exciting new program before this year’s deadline. “For Minnesotans who believe that everyone deserves a safe and secure place to live, this is a great opportunity to directly support a project in your community,” she said. “I’ve talked with one Minnesota company that has already made a substantial contribution to the general pool and several others who are considering contributions. I hope other companies and individuals will follow their lead.”
St. Paul resident John Bergstrom, a long-time volunteer and financial supporter of Twin Cities Habitat for Humanity, reported that he submitted his application for the tax credit earlier this month. He chose to designate his contribution to The Heights project being developed by Twin Cities Habitat because it represents an important redevelopment effort for St. Paul and will include more than 100 homes built by Habitat.
“The State Housing Tax Credit Program is an amazingly good way to encourage individuals and companies to support affordable housing development through the always popular method of reducing their state income taxes,” John shared.
Other organizations seeking designated contributions for housing projects stretching from Thief River Falls to Rochester include Aeon, Beacon Interfaith Housing Collaborative, Central MN Housing Partnership, CommonBond Communities, Project for Pride in Living, Inc. (PPL), Three Rivers Community Action, and North Star Neighbors.
If the contributor doesn’t designate a specific project, the contribution will go to a general housing fund that can be awarded to cities, federally recognized American Indian tribes, developers, nonprofits, a public housing authority, or a redevelopment authority.
Be sure to consult with your tax preparer or financial advisor when deciding if this program is right for you.