MANKATO — If you want to help your neighbors and get a tax break too, here is your chance.
Minnesota is offering a tax credit to eligible taxpayers to encourage investment in affordable housing throughout the state. The tax credit is 85% of the amount contributed. That is the amount your tax bill is reduced. And taxpayers do not have to itemize to get the credit.
Taxpayers must contribute at least $1,000, and the maximum amount is $2 million.
“If someone contributes $1,000 to our Habitat house build in North Mankato, then they will receive $850 as a tax credit,” said Juliann Dandu, development manager with Habitat for Humanity South Central Minnesota.
“It’s pretty simple. The feedback is that it’s very efficient.”
Habitat for Humanity South Central Minnesota has two local projects taxpayers can contribute to. One is a house in North Mankato, which Dandu expects will be completed this spring. The second qualifying house is in Mankato, which she said will be completed in winter of 2025.
During its first year last year, Minnesota Housing received nearly 400 contributions for the tax credit program, which tallied about $7 million. So far this year, the state has received 150 contributions. Those contributions have tallied close to $3 million.
The program is open as long as the state has tax credits to allocate, said Ryan Baumtrog, assistant commissioner for policy and community development with Minnesota Housing.
Donors can identify a project they’d like to support and keep their money local if that’s important to them. “People can direct their contribution to housing that reflects their values and what they’re interested in supporting,” Dandu said.
“That’s exactly right,” echoed Baumtrog. “In North Mankato and Mankato, Habitat for Humanity South Central Minnesota is looking for some contributions to help build homes.”
“It’s a great program,” Dandu said. “We all know here in Minnesota it is harder and harder to find affordable housing. This is a newer initiative from the state. They want to support affordable housing and the program is completely taxpayer funded.”
Baumtrog describes affordable housing as a “big issue.”
“This program allows residents of Mankato and North Mankato the chance to make a contribution to help build projects locally in their communities,” he said. “It’s a way they can contribute directly to help address the housing needs of Mankato and its neighbors.”
Baumtrog said Minnesota Housing hopes to allocate all $9.9 million in tax credits available this year. “We just need more people to make contributions,” he said, “so we can allocate tax credits.
“It’s about letting people know this is an opportunity because it’s a new program and one that is fairly unique across the country,” he said. “It’s one where your neighbors can make a contribution to a project and get some benefits for themselves.”
The fund shows the state’s commitment to housing, Dandu said. “We are excited to see people taking notice and starting to use this fund more than they did last year,” she said.
“I would urge people to check it out and make a contribution,” Baumtrog said. “They can make an impact in their community and help more homes get built in Mankato and North Mankato.”
A deadline for contributions hasn’t been set yet, Baumtrog said, but will be sometime in December. For more information or to apply, go to habitatscmn.org/tax-credit.