2024 State Housing Tax Credit

ST. LOUIS PARK, MN – With a December 6, 2024, deadline looming, a coalition of affordable housing developers, legislators, state officials, contributors, homeowners and renters, led by Minnesota Housing Partnership (MHP), are reminding Minnesota taxpayers about a unique opportunity to support housing in their communities — and get a tax credit for doing it.

The State Housing Tax Credit (SHTC) and Contribution Fund was launched in late 2023 and generated almost $7 million in private contributions to support the completion of homes and apartments across the state in its inaugural year. Nearly 400 Minnesota taxpayers made contributions last year, with many designating their dollars to 23 specific projects across the state.

This innovative and highly unique program, administered by Minnesota Housing, allows individual and corporate Minnesota taxpayers to invest in housing and receive a credit on their Minnesota taxes for 85% of their contribution. The program gives taxpayers a fresh start each year, with the opportunity to support an annual maximum of $11.6 million in contributions. To begin the process, taxpayers must complete a simple online application.

The deadline to apply this year is December 6, and funds must be submitted no later than December 31, 2024.

Taxpayers have already applied for $5.2 million in tax credits this year (as of November 18), but there is still time for people and companies to support housing in their local communities and maximize 2024’s contributions and tax credits.

“Every organization that builds affordable housing in their community struggles to gather all of the needed resources, and it can take years to fund and begin construction,” said Paul Williams, president and CEO of Project for Pride in Living (PPL). “The funds received through SHTC contributions serve as a bridge, helping projects get in the ground a little faster. We appreciate how it empowers individuals and corporations to give either to specific projects or to a general pool, and their gifts are put immediately to work.”

Housing affordability is a crisis throughout the country, and Minnesota is no exception with a shortage of affordable homes and apartments and high housing costs for many households. According to the National Low Income Housing Coalition, Minnesota has a significant shortage of affordable rental homes available to extremely low-income households with incomes below the poverty guideline or 30% of the Area Median Income. Many of these households are severely cost-burdened, spending more than half their income on housing.

“We have the capacity to raise $11.6 million this year to increase rental housing and homeownership in our state,” said Anne Mavity, executive director of the Minnesota Housing Partnership. “We don’t want to leave any of those funds on the table. Minnesota leads the nation in charitable giving, and we also lead in innovative housing policy. SHTC provides an opportunity for those who care about housing affordability and quality of life in our state to contribute, receive a tax benefit and see the fruits of their giving when projects go in the ground.”

Individuals and businesses who pay state taxes and meet eligibility requirements can contribute anywhere from $1,000 to $2 million per year. The program provides a tax credit of 85% of the contribution amount. If you donate $1,000 to the Fund, you receive an $850 credit to offset your Minnesota taxes.

“That means that for $150 dollars out of your pocket, you can make a $1,000 impact for a project you care about. It multiplies the impact of the dollars you give almost seven times,” said Mavity.

Contributors can designate their dollars for a specific project, or they can choose to use the general contribution pool, which will be used by Minnesota Housing to fund additional projects selected through a competitive process.

One investor in the SHTC program is Old National Bancorp (“Old National”), the sixth-largest financial institution in the Midwest. Its seven-figure commitment will directly benefit residents by helping to preserve three CommonBond Communities properties: St. Anne’s Senior Community in Minneapolis, Le Sueur Meadows in LeSueur and Wilder Square in St. Paul.

“We take tremendous pride in strengthening and supporting our Minnesota communities, and we look forward to serving our clients who have such a positive impact in the communities we serve,” said Jim Sandgren, Old National CEO, Commercial Banking. “This investment demonstrates the value we place in Minnesota, and we look forward to a cascading positive impact throughout the Twin Cities and every region we serve.”

For the second year in a row, Securian Financial, headquartered in downtown St. Paul and one of the nation’s largest life insurance companies, is investing $1 million in the SHTC program, making them one of the largest single contributors to date. This year, they have designated The Heights project, which is being developed by Twin Cities Habitat in East St. Paul. The Heights will create 147 new affordable homes in East St. Paul and is the largest project in Twin Cities Habitat for Humanity’s history.

Currently, there are 48 projects seeking designated SHTC contributions. For those looking to contribute, discover a project to specify or give to the General Contribution Fund.

For interviews with any of the coalition’s speakers, contact Ella Carlsson, Red Mood Marketing, ella@redmoodmktg.com, 612.805.0572.

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About Minnesota Housing Partnership

Minnesota Housing Partnership (MHP) advocates for equitable housing policy, produces data-informed research to inform solutions, and delivers community development services across the U.S. MHP’s efforts are rooted in the tenet that everyone should have a safe, stable place to call home. MHP is an anti-racist/culturally responsive organization and employer. For more information, visit MHP. 

About Project for Pride in Living

PPL builds the hope, assets and self-reliance of individuals and families who have lower incomes by providing transformative affordable housing and career readiness services. PPL provides high-quality affordable housing, on-site resident services, and life-changing career readiness programs to over 8,000 people annually throughout the seven-county metro area. For more information, visit PPL. 

About Twin Cities Habitat for Humanity

Twin Cities Habitat for Humanity brings people together to create, preserve and promote affordable homeownership and advance racial equity in housing. Since 1985, more than 1,900 families have partnered with Twin Cities Habitat to unlock the transformational power of homeownership. Twin Cities Habitat is one of the highest-regarded Habitat for Humanity affiliates nationwide. Learn more about Build Forward Together or visit Twin Cities Habitat. 

About CommonBond Communities

CommonBond Communities believes a home is the foundation for everything in life. Our mission is to build stable homes, strong futures and vibrant communities. CommonBond has been building and sustaining homes with services for families, seniors, veterans and people with disabilities since 1971. Learn more at CommonBond.     

About Old National

Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank. As the sixth largest commercial bank headquartered in the Midwest, Old National proudly serves clients primarily in the Midwest and Southeast. With approximately $54 billion of assets and $30 billion of assets under management, Old National ranks among the top 30 banking companies headquartered in the United States. Tracing our roots to 1834, Old National focuses on building long-term, highly valued partnerships with clients while also strengthening and supporting the communities we serve. In addition to providing extensive services in consumer and commercial banking, Old National offers comprehensive wealth management and capital markets services. For more information and financial data, please visit Investor Relations at Old National. In 2024, Points of Light named Old National one of “The Civic 50” – an honor reserved for the 50 most community-minded companies in the United States.

About Securian Financial

To be confident in your financial future, you need to trust the strength and commitment of the companies you choose to work with. For more than 140 years, the Securian Financial family of companies has been developing innovative insurance and retirement solutions to meet the evolving needs of individuals, families and businesses. Offered through partnerships with employers, financial professionals and affinity groups, our products help bring peace of mind to more than 23 million customers throughout the United States and Canada. We are trusted by our partners and customers to fulfill our purpose of helping to build secure tomorrows. Learn more at Securian Financial or follow us on Facebook, Instagram or LinkedIn.