Bill > HF2049

This bill establishes the Minnesota Strategic Industrial Development Enhancement tax credits, which provide financial incentives for businesses and infrastructure development in smaller Minnesota counties. Specifically, eligible entities can receive tax credits of 10% (up to $8 million) for qualified economic development expenditures like land improvements, building construction, and equipment purchases, and 50% (up to $4 million) for qualified initial infrastructure expenditures such as new rail infrastructure, track construction, and loading dock improvements. Projects must be located in industrial parks, economic development zones, opportunity zones, or near certain railroads in counties with populations under 250,000. The total tax credit per project cannot exceed $10 million, and the commissioner of employment and economic development will not allocate more than $50 million in credits per tax year. Credits can be carried forward for up to five years and can be transferred to other taxpayers through a written agreement filed with the Department of Revenue. The program is set to expire on January 1, 2035, and will be effective for taxable years beginning after December 31, 2024, with the goal of encouraging economic development and job creation in smaller Minnesota communities.

Labor and Employment

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2049&ssn=0&y=2025