SF2178

SF2178 (Legislative Session 94 (2025-2026))

Refundable construction exemption provision for construction of new multifamily residential housing for first-time homebuyers

Related bill: HF178

AI Generated Summary

This bill (S.F. No. 2178) proposes a refundable sales and use tax exemption for construction materials, supplies, and equipment used in building new multifamily residential housing (limited to duplexes and triplexes) for first-time homebuyers in Minnesota. To qualify, the first-time homebuyer must own and occupy at least one unit of the property. The exemption applies only to the first $460,000 of construction costs. Initially, sales tax is collected as usual, but a refund is provided afterward. This exemption is set to expire on July 1, 2033.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 05, 2025	House	Floor	Action	Introduction and first reading
March 05, 2025	Senate	Floor	Action	Introduction and first reading
March 05, 2025	House	Floor	Action	Referred to	Taxes
March 05, 2025	Senate	Floor	Action	Referred to	Taxes

Citations

[
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Refers to the tax rate applied to purchases in relation to construction exemptions.",
      "modified": [
        "How tax rates are considered for refundable exemptions under new multifamily home construction."
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Refers to the method of tax refund for exempt purchases under the construction exemption for multifamily housing.",
      "modified": [
        "The refund process for taxes on qualifying construction materials is clarified."
      ]
    },
    "citation": "297A.75",
    "subdivision": ""
  }
]