4% Only Housing Tax Credits

Information about 4% 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. 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% housing tax credits is Minnesota Housing.
 
Section 42 of the Internal Revenue Code establishes that 4% housing tax credits 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 Housing tax credits. The QAP and corresponding documents are published annually. The year in which tax exempt volume limited bonds are first issued for the project determines which year’s QAP applies to the project.

Apply for Housing Tax Credits

Minnesota Housing is currently accepting pre-applications and will also be accepting full applications for preliminary determination of eligibility for 2019 4% Housing tax credits letters (42M) for projects expected to be financed with tax exempt volume limited bonds directly from MMB beginning on January 1, 2019. Pre-applications and applications must be submitted in Minnesota Housing's Multifamily Customer Portal. Documents are listed for reference on the Application Resources webpage and the Tax Credit webpage.

Technical Assistance

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