Written by Doug Gettle
Former NSLCHFH Board Member
In 2023, the Minnesota Legislature passed a bill to encourage giving to organizations that are working to provide affordable housing . They did not designate money but instead offered a tax credit of $850 for a $1,000 contribution for 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 Hibbing High School and Minnesota North College.
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 any amount can be made above that (up to $2,000,000). 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.
Making a contribution online is easy. Go to mnhousing.gov and search for Contribution Fund. Click “State Housing Tax Credit” and scroll to “Program contributions now being accepted.” Complete the online application being 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 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 state limit. Businesses may also claim this credit.
Not everyone is able to tie up a thousand dollars, even knowing that most of it will come back as a tax credit next spring. But think of the impact that could be made if a few dozen supporters who normally donate one or two hundred dollars a year took advantage of this state credit!
Doug Gettle was an NSLCHFH founding board member and has continuously supported our organization since 1995. He is a tax preparation professional who lent his knowledge to this article about an alternative way to support Habitat!
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