Eligible recipients for the Minnesota housing tax credit contributions modified, and set-aside for credit allocations required.

This bill modifies the Minnesota housing tax credit program to require that 50 percent of available tax credits be reserved for housing projects located outside the metropolitan area, known as Greater Minnesota. It also updates the program's definitions to clarify terms like "Greater Minnesota" and "qualified project" and establishes rules for how taxpayers can direct their contributions toward specific projects. Additionally, the legislation strengthens anti-abuse provisions by expanding the list of disqualified individuals and businesses that cannot receive grants or loans if they or their related parties have previously contributed to the tax credit account. These changes are designed to ensure broader geographic distribution of housing development funding and prevent conflicts of interest between contributors and recipients. The provisions will take effect for taxable years beginning after December 31, 2026.