Research and Development Tax Credit: A non-refundable tax credit equal to 10% of the first $2 million in eligible expenditures and 2.5% of eligible expenses above $2 million is available for qualified businesses engaged in R&D activities. Credit may be carried forward up to 15 years.
Angel Tax Credit: Newly enacted legislation provides a 25% credit to investors or investment funds that put money into startup companies focused on high technology, new proprietary technology or a new proprietary product, process or service in specific fields.
Minnesota Job Creation Fund (MJCF) – Twin Cities: Provides up to $1M in funding over a 5 year period in the Minneapolis-St. Paul Metro area. The company must invest a minimum of $500,000 in qualifying property improvements. Payments are up $3,000 per job with a 5% rebate. If a company invests $75M and creates 250 qualifying jobs, the maximum award is up to $2M.
Minnesota Job Creation Fund (MJCF) – Greater Minnesota: Provides up to $1M in funding over a 7 year period in the Greater Minnesota area. The company must invest a minimum of $250,000 in qualifying property improvements. Payments are up to $4,000 per job with a 7.5% rebate. If a company invests $25M and creates 75 qualifying jobs, the maximum award is up to $2M.
Minnesota Investment Fund (MIF): Provides loan financing to a company via the community in which the project will occur. The MIF assistance is based upon capital investment and the creation of new full-time equivalent jobs within two years. The funds are granted to the City and then provided as a loan to the company. Forgiveness of the State portion of the loan may occur if the company meets certain capital expenditure, job and wage requirements. The City has the option to forgive their portion of the loan (40% of the award or up to $100K) City Council action. MIF funds and matching funds may be used to pay for equipment costs incurred after a formal award letter has been signed by the Commissioner of DEED. Formal resolution and City Council action are required for approval and use of these funds. The program award maximum is $1,000,000.
Border Cities Enterprise Zone Program: This program provides tax credits to qualifying businesses that locate or expand in the cities of Breckenridge, Dilworth, East Grand Forks, Moorhead, or Ortonville.
Greater Minnesota Job Expansion Program: Provides sales tax exemptions of up to 12 years to certified businesses that increase employment by 10 percent at their facility and meet prevailing wage requirements. Refunds can total up to $2M annually and $10M over the seven-year certification period. Business facilities must be located outside of the Greater Minneapolis-St. Paul Metro in order to qualify.
Data Centers: Businesses that invest at least $30 million in a data or network operation center with at least 25,000 square feet can qualify for a 20-year sales tax exemption on related equipment purchases. In addition, a 20-year sales tax exemption is available for businesses that invest at least $50 million to refurbish an existing data with at least 25,000 square feet.
Sales and Use Tax Exemptions: In addition to the sales tax exemption for manufacturers’ capital equipment, sales of property delivered outside the state are exempt from sales tax under certain conditions. Materials used or consumed in agricultural, industrial, or services production for retail sale and petroleum products subject to other excise taxes are also exempt from sales and use taxes.
Minnesota Job Skills Partnership (MJSP): Application based grants, awarded by the MJSP Board of up to $400,000 are available to educational institutions that partner with businesses to develop job training programs for new hires and existing workers.
Minnesota Job Training Incentive Program (JTIP): Provides training grants of up to $200,000 to new or expanding businesses located in Greater Minnesota. Funding is available to businesses located outside the seven county metropolitan Twin Cities area, and adding at least three new jobs. The new jobs must pay wages at least equal to the average weekly wage for the county in which the jobs are located. Funds may be used to pay direct training costs for workers in new jobs including trainee wages for on-the-job training, curriculum development, delivery of training, materials and supplies, training equipment and facilities, and trainer travel and lodging costs. Funds may also be used for assessment, testing and certification costs. Training may be provided in-house, by institutions of higher education, by federal, state, or local agencies, by consultants, or equipment vendors. This program may be used (stacked) with the MJSP training program if appropriate and needed.
Last updated: May 2019