4% Only Housing Tax Credits for Use with Tax-Exempt Volume Limited Bonds (4% Only)

Minnesota has different allocating agencies for the distribution of tax-exempt volume limited bonding authority and 4% housing tax credits (HTC). The primary allocating agency for tax-exempt volume limited bonding authority is Minnesota Management and Budget (MMB), and the primary housing credit agency for 4% HTC is Minnesota Housing.

Section 42 of the Internal Revenue Code establishes that 4% HTC may be available under certain circumstances for projects that receive an allocation of tax-exempt volume limited bonding authority. Minnesota Housing’s Qualified Allocation Plan (QAP) is the agency’s plan for the distribution of HTCs. The QAP and corresponding documents are published annually. The year in which tax-exempt volume limited bonds are issued in an amount sufficient to meet the 50% test for 4% HTC determines which year’s QAP applies to the project.

Apply for Housing Tax Credits

Minnesota Housing is currently accepting pre-applications, and beginning on January 1, 2021 will also be accepting full applications, for an allocation of 2021 4% HTC (42M) for projects expected to be financed with tax-exempt volume limited bonding authority from MMB. Pre-applications and applications must be submitted using Minnesota Housing's online Multifamily Customer Portal. Application resources include the following:

Technical Assistance

  • Technical assistance with Minnesota Housing staff is available and strongly encouraged throughout the process. For more information or tax credit questions, contact William Price at william.price@state.mn.us or 651.296.9440.