This bill proposes amendments to Minnesota tax law regarding the Historic Structure Rehabilitation Credit. Specifically, it allows for a second assignment of the credit and modifies requirements for issuing allocation certificates.

Key provisions of the bill include:

1. Application Process: Developers must apply for the credit before starting rehabilitation, providing necessary details and paying a fee (up to 0.5% of qualified expenditures, with a cap of $40,000) to cover administrative costs.

2. Issuance of Allocation Certificates: If an application is approved, the state office will issue a certificate verifying eligibility and outlining:

   • The anticipated credit or grant amount.
   • The potential for adjustment if the actual federal credit received differs from initial projections.
   • The fiscal year allocation, specifying that the taxpayer or grant recipient will receive the amount in five equal annual installments, given the project is placed in service within three years.

3. Project Eligibility Review: The state office, in consultation with the Commissioner of Revenue, will determine eligibility, with decisions subject to review and audit.

4. Recapture and Repayment Exception: Federal recapture rules under the Internal Revenue Code do not apply to this Minnesota credit.

5. Challenge Process: Developers may challenge eligibility determinations through a contested case proceeding within 45 days of notification.

In summary, the bill refines the administration of the Historic Structure Rehabilitation Credit by incorporating an option for reassignment, adjusting how credits/grants are issued, and clarifying regulations for qualification and dispute resolution.