North St. Louis County Habitat for Humanity

Do you want to tell the State of Minnesota how you want your tax dollars spent? You have the opportunity to earn an 85% tax credit while increasing our area’s supply of decent, affordable homes.

In 2023, the Minnesota Legislature passed a bill to encourage giving to organizations working to provide affordable housing. They did not designate money but instead offered a tax credit for a contribution to qualified projects.

Under Section 290.0638, a taxpayer is allowed a credit of 85% of the amount that a taxpayer contributes of no less than $1,000 and no more than $2,000,000 for qualified projects with the Minnesota Housing Finance Agency. North St. Louis County Habitat for Humanity has one Specific Qualified Project registered with MHFA. This project is called “Home on the Range” and is built in partnership with the Drake family in Buhl. Donating to this specific project benefits our entire homeownership program.

This is an excellent way for North St. Louis County Habitat for Humanity supporters to leverage a $150 donation into a $1,000 donation. The minimum contribution is $1,000, but individuals and businesses can give any amount above that up to $2,000,000. Be sure to designate your money by December 6.

Contributing online is a simple process. Go to mnhousing.gov/shtc-contribution.html, then scroll down to “How do I contribute?” Complete the online application, and be sure to designate the contribution to North St. Louis County Habitat for Humanity. The Specific Qualified Project is titled “Home on the Range.” Checks are made out to Minnesota Housing (not to Habitat) and after signature requirements are met, a tax certificate will be issued. The credit can be claimed on MN Schedule M1C. Be sure to apply early, as there is an annual total state limit. Businesses may also claim this credit.

COMPLETING THE APPLICATION—IT’S EASY!

View the images below to see examples of how to fill out the application as an individual or as a business and how to enter information specific to our housing project.

Minnesota Housing Finance Agency will issue a credit certificate to be claimed when your Minnesota taxes are filed next spring. The credit must be claimed for the year that the contribution is made, and it can only be used to offset current tax liability. Excess credits may be carried over to each of the ten succeeding taxable years.

If you are able to take advantage of this opportunity, you can control where your tax money is spent and help ensure more of your neighbors can afford a decent place to live. Contact us if you have questions about this program.

Doug Gettle, an NSLCHFH founding board member, is a tax preparation professional who lent his knowledge to this article about an alternative way to support Habitat!