Tax Credit Proposal Targets Vacant Buildings in Minnesota
Building Owners: Senate Considers Tax Credit Boost for Building Conversions. (PHOTO: Brownstoner)
Minnesota Legislature Proposes Tax Credit for Building Revitalization
According to Finance & Commerce, a new tax credit initiative known as the Conversion of Underutilized Buildings Tax Credit (CUB), has been introduced in the Minnesota Legislature. Spearheaded by Mendota Heights DFL Sen. Matt Klein, the policy aims to rejuvenate buildings left vacant due to the pandemic. Building owners with properties showcasing 50% vacancy or more for five years or longer could qualify for the credit amounting to 30% of the conversion cost. Building owners under the proposed bill projects costing less than $5 million to convert may receive a grant instead of a tax credit. The initiative has garnered support from various stakeholders including Minneapolis Mayor Jacob Frey and Sherman Associates’ Dan Collison.
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CUB Tax Credit Proposal Sparks Debate Over Property Tax Implications
As building owners discussions unfold around the Conversion of Underutilized Buildings Tax Credit (CUB) in the Minnesota Legislature concerns arise regarding its impact on property taxes. Building owners, the primary beneficiaries of the proposed tax credit face uncertainties about how conversions could influence their tax obligations. While supporters argue that revitalizing vacant buildings would enhance communities Taxes Committee Chair Sen. Ann Rest raises apprehensions about potential shifts in property values. Specifically, the conversion of multifamily properties may alter tax revenues posing challenges for local governments. Despite differing opinions stakeholders emphasize the importance of revitalizing unused buildings and maximizing their potential.
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