This bill (S.F. No. 2115) proposes amendments to Minnesota Statutes 2024, section 290.0681, regarding the historic structure rehabilitation tax credit. The key provisions include:

1. Second Assignment of Credit: It allows for a second assignment of the tax credit, providing more flexibility for developers in utilizing the credit.

2. Application Process:

   • Developers must apply for the credit before rehabilitation begins.
   • The application requires specific information as prescribed by the Office.
   • A fee of up to 0.5% of qualified rehabilitation expenditures (capped at $40,000) may be collected to cover administrative costs.

3. Allocation Certificates:

   • Issued upon approval of a project to verify eligibility.
   • Specifies the anticipated amount of tax credit or grant:
     • 100% of the federal historic tax credit for tax credits.
     • 90% of the federal tax credit for grant recipients.
   • Adjustments may be made if the federal credit received differs from the initial estimate.
   • Credits or grants are distributed over a five-year period, provided the project is placed in service within three years of receiving the allocation certificate.

4. Eligibility and Compliance:

   • Determined by the Office in consultation with the Commissioner of Revenue.
   • Subject to audit to ensure compliance.
   • Federal credit recapture and repayment requirements do not apply to this state credit.

5. Appeals Process:

   • Developers may challenge a denial of eligibility as a contested case.
   • Appeals must be initiated within 45 days of receiving written notification.

This bill aims to enhance the management and flexibility of Minnesota's historic structure rehabilitation credit, supporting redevelopment efforts while ensuring administrative oversight.