Deadline Approaching: Unique Tax Credit and Chance to Support Habitat

While this might seem too good to be true, it's not! Thanks to the newly created State Housing Tax Credit (SHTC) and Contribution Fund, you can support housing development projects across the state and get a tax credit equal to 85% of your contribution. It's a simple process that only takes a few minutes. 

Be sure to act quickly—the deadline to apply to contribute is December 6, 2024. 

Individuals and businesses who pay state taxes and meet eligibility requirements can contribute anywhere from $1,000 to $2 million. The Fund provides a tax credit of 85% of the contribution. For example, if you contribute $1,000 contribution, that would amount to $850 in tax credit. Or, if you contribute $10,000, you'll get $8,500 in tax credit. This is not a tax deduction, but a credit that offsets your state taxes.

Prospective contributors must fill out a very simple online application through Minnesota Housing— it only takes 5 minutes! Applications for 2024 contributions must be completed by December 6 at 5:00 p.m.

“The state tax credit program is one of the most amazing pieces of legislation we’ve seen in a long time,” said Chris Coleman, president and CEO of Twin Cities Habitat for Humanity. “It’s an incredibly simple way to help your tax burden while investing in much-needed affordable housing in Minnesota.”

See for yourself how easy and simple the process is! Check out these example applications:

• Individual contributor application example
• Corporate contributor application example 

The Minnesota Legislature created the Housing Tax Credit Program and Contribution Fund as a new way to help finance affordable multifamily and single-family housing throughout the state. SHTC is entirely funded with eligible Minnesota taxpayer contributions. The Fund hopes to raise $11.6 million this year.

While individuals and companies can designate their contribution either to a general pool or to any of 48 housing development projects, we hope you'll consider contributing to Twin Cities Habitat for Humanity’s project at The Heights.

Support Habitat Homes at The Heights

St. Paul resident John Bergstrom, a long-time volunteer and financial supporter of Twin Cities Habitat for Humanity, reported that he submitted his application for the tax credit again this year, after doing so last year. He chose to designate his contribution to The Heights project being developed by Twin Cities Habitat because it represents an important redevelopment effort for St. Paul and will include more than 100 homes built by Habitat.

“The State Housing Tax Credit Program is an amazingly good way to encourage individuals and companies to support affordable housing development through the always popular method of reducing their state income taxes,” John shared.

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— making them one of the largest single contributors to-date — in the SHTC program. This year, they have designated their contribution to Habitat's project at The Heights.

Funds contributed to The Heights project will be used by Twin Cities Habitat for Humanity to build 147 homes over the next five years as part of an environmentally friendly redevelopment of the 112-acre former Hillcrest Golf Course on St. Paul’s East Side. Volunteer efforts at The Heights launched with the Jimmy and Rosalynn Carter Work Project earlier this fall. The broader development at The Heights will include both housing and light industrial development, with 1,000 living-wage jobs and 1,000 housing units built by multiple development partners. Read more about how Habitat will use the State Housing Tax Credit and Contribution Fund at the Heights.

We hope contributors will view this tax credit opportunity as an unique way to contribute to the Heights, in addition to philanthropic donations that support the breadth of our work across the seven-county metro. This is a great opportunity to talk with your financial advisor about how you could potentially get a wonderful state tax credit by giving Habitat extra support directly to our project at The Heights. 

Be sure to consult with your tax preparer or financial advisor when deciding if this program is right for you.