Bill > HF2723

This bill modifies the small business income tax investment credit program in Minnesota by making several key changes. First, it increases the maximum amount of previous private equity investments a qualifying small business can have received from $4 million to $15 million. The bill extends the credit allocation period, adding $10 million in available credits for taxable years beginning after December 31, 2024, and before January 1, 2029. It also lengthens the required investment holding period from three to five years, meaning investors must maintain their investment in a qualified small business for five years to retain the full tax credit. Additionally, the bill adjusts the repayment schedule for credits if a business fails to meet employment and payroll requirements, with a graduated repayment scale over five years. The legislation continues to support innovative small businesses in Minnesota, particularly those in high-technology fields, by maintaining existing certification requirements such as having headquarters in Minnesota, employing at least 51% of workers in the state, and focusing on innovation in areas like technology, agriculture, manufacturing, and research and development. The bill aims to provide ongoing support for small business investment and economic development in Minnesota, with an effective date of January 1, 2025.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2723&ssn=0&y=2025