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1
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Small business investment credit; data practices. Provides a cross reference in chapter 13 (the
data practices act chapter) to the data practices provisions of the angel
investment credit under section 2.
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2
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Small business investment credit. Provides a tax credit for angel or early stage
venture capital investments by individuals or funds.
Subd. 1. Definitions. Defines the following terms:
·
Qualifying small business is a
business certified by the commissioner of the Department of Employment and
Economic Development (DEED).
·
Qualified investor is an
investor certified by DEED.
·
Qualified fund is a pooled
investment fund certified by DEED.
·
Qualified investment means an
investment of at least $10,000 if made by a qualified investor, and of at
least $30,000 if made by a qualified fund.
·
Family is defined by reference
to the Internal Revenue Code.
·
Pass-through entity is an S corporation,
partnership, trust, or limited liability company that is not taxed as a C
corporation.
Subd.
2. Certification of qualified small business. Authorizes businesses to apply annually to DEED for certification and
pay an application fee of $150. Application fees are deposited in an
administrative account established in the special revenue fund. DEED has 30
days to certify the business, reject the application, or request additional
information, and then an additional 30 days after receiving the additional
information to certify the business or reject the application. If DEED fails
to act the application is deemed rejected, and DEED must refund the
application fee. Businesses may reapply for certification.
To receive certification, a business must be
engaged in any of a wide variety of lines of business as its primary business
(e.g., any type of manufacturing, technology, R&D, or developing new
processes or products) other than real estate development, financial
services, wholesale or retail trade, hospitality or professional services.
The business must have its headquarters and 51 percent of its employees in
Minnesota. It cannot have more than 25 employees or have received more than
$2 million in private equity investments. Business must pay all employees wages
and benefits of at least 175 percent of the federal poverty guideline, with
the exceptions of executives, officers, members of the board, and employees
who have greater than a 20 percent ownership share in the business.
A business must be certified for the tax year
before investments in the business qualify for the credit. Requires DEED to
maintain a list of certified businesses on its Web site.
Subd.
3. Certification of qualified investor. Authorizes
investors to apply to DEED for certification and pay an application fee of
$350. Application fees are deposited in an administrative account
established in the special revenue fund. DEED has 30 days to certify the
investor, reject the application, or request additional information, and then
an additional 30 days after receiving the additional information to certify
the investor or reject the application. If DEED fails to act the application
is deemed rejected, and DEED must refund the application fee. Investors may
reapply for certification.
Investors qualify for certification either by
being an accredited investor under SEC Reg D (generally requires net worth of
$1 million or annual income of $200,000 or more, $300,000 for a married
couple), or by certifying they intend to invest in an offering that is exempt
from registration under state law.
Investments made by an accredited investor before
the investor receives certification for the tax year do not qualify for the
credit.
Subd.
4. Certification of qualified funds. Authorizes
funds to apply to DEED for certification and pay an application fee of
$1,000. Application fees are deposited in an administrative account
established in the special revenue fund. DEED has 30 days to certify the
fund, reject the application, or request additional information, and then an
additional 30 days after receiving the additional information to certify the
fund or reject the application. If DEED fails to act the application is
deemed rejected, and DEED must refund the application fee. Funds may reapply
for certification.
To receive certification, a fund must invest or
intend to invest in qualifying small businesses or and be organized as a
pass-through entity with at least three investors.
Investments made before a fund receives
certification for the tax year do not qualify for the credit.
Subd.
5. Credit allowed. Allows a 25-percent,
refundable credit for investments in a qualified small business. The maximum
cumulative credit for a tax year is $250,000 for married couples filing joint
returns, and $125,000 for all other filers. No more than $4 million in
investments in any one qualified business over the life of the business are
eligible for the credit (i.e., total credit limit for each business of $1
million). Prohibits the commissioner from allocating a credit to an investor
who receives more than 50 percent of his or her annual gross income from the
qualified business.
Provides $2.5 million in credits for tax year
2010, and $5 million in credits per year for tax years 2011 through 2015,
except that the tax year 2013 amount is reduced by $100,000 to fund the
program evaluation in subdivision 10.
Requires investors and funds to apply to the
commissioner for credits. The commissioner must award credits on a
first-come, first-served basis, and must act on credit applications with 15
days. Investors and funds must make the investments specified in the credit
application with 60 days; if they do not the credit allocation cancels and is
available for reallocation. Requires DEED to provide credit certificates
after receiving notification that the investment was made; the certificate
must state that investments must be maintained for three years, or else the
credit is revoked and must be repaid. Exceptions are provided (and the
credit may be claimed even though the investment has been disposed of before
the end of the three-year period), if the investment becomes worthless or
business is sold.
Subd. 6. Annual reports. Requires qualified small businesses, investors,
and funds that either receive or make investments resulting in credits to file
annual reports with DEED and pay a $100 filing fee. Businesses, investors,
and funds that fail to report are subject to a $500 fine.
Qualified small businesses must certify that the
business maintains its headquarters in Minnesota, has at least 51 percent of
its payroll and employees in Minnesota, is engaged in a qualifying line of
business, and meets the 175 percent of the federal poverty guideline
requirement for wages and benefits paid to employees.
Qualified investors and funds must certify that they
remain invested in the business.
Subd. 7. Revocation of credits. Provides for full revocation of credits for
investors and funds that fail to meet the three-year holding requirement, and
for full or partial revocation of credits for businesses that do not retain
51 percent of their payroll and employees in Minnesota for five years after
receiving an investment that qualified for the credit.
A business that does not have 51 percent of its
payroll and employees in Minnesota in the five years following receipt of an
investment that qualifies for the credit must repay a percentage of the
credit, as shown in the table:
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Year after
investment made
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Percent of
credits that must be repaid
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1
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100%
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2
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80%
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3
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60%
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4
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40%
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5
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20%
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6 and later
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0%
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Subd. 8. Data privacy. Makes data contained in certification applications
from businesses, investors, and funds private, except the following items are
public:
·
Names of businesses,
investors, and funds that receive certification
·
Names of investors and funds
that make investments resulting in credits, names of businesses receiving
investments that result in credits, and the amount of each credit and
corresponding qualifying investment
·
Names of investors, funds, and
businesses for which credits are revoked, and the amount revoked
Requires DEED to provide application data and the Department
of Revenue to provide tax return data to the consultant under contract for
the program evaluation under subdivision 10.
Subd. 9. Report to legislature. Requires DEED to report annually on the program
to the tax and economic development committees of the legislature. The
report must provide information on the number and amount of credits issued,
the recipients, the line of business, and geographic location of each business
that received certification, and also if the business received an investment
that resulted in a credit, the amount of additional investments leveraged by
the allowance of the credit, credit revocations, and other information
relevant to evaluating the credit.
Subd. 10. Program evaluation. Requires the commissioner of revenue, in
consultation with the commissioners of management and budget and employment
and economic development, to contract with an outside consultant to evaluate
the effects of the credit on Minnesota’s economy. Requires the evaluation to
be completed by January 2014. Reduces the tax year 2013 appropriation for
the credit by $100,000 to fund the evaluation. Subjects the consultant to
the same data practices requirements as apply to government entities, with
regard to application and tax return data used in the evaluation.
Subd. 11. Appropriation. Appropriates amounts in the small business
investment tax credit administration account to DEED for costs of
administering the credit. Fees paid by businesses, investors, and funds to
receive certification are deposited in the account in subdivisions 2, 3, and
4.
Subd. 12. Sunset. Provides that the credit expires after tax year
2015, except leaves in effect reporting requirements as necessary to enforce
credit revocations and provide program information to the legislature.
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3
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Definitions. Defines
terms used in this section and section 4.
City means a statutory or home rule charter city.
Local government means a city, county, or town.
Energy audit means an evaluation of the energy consumption of
a building by an energy auditor who is certified by the commissioner of
public service that identifies appropriate energy improvements to the
building.
Energy improvement means renovation or retrofitting of a building to
improve energy efficiency, installation of new or upgraded electrical
circuits to permit charging of electrical vehicles, and renewal energy system
attached to, installed in, or close to the building to generate electrical or
thermal energy.
Qualifying real property means a single-family or multifamily residential
dwelling, commercial, or industrial building that the local government has
determined can benefit from energy improvements.
Renewable energy means energy produced by solar thermal, solar
photovoltaic, wind, or geothermal methods.
Renewal energy system feasibility
study means a written study to determine the
feasibility of installing a renewable energy system in a building.
Solar thermal and solar
photovoltaic are defined by cross reference
to other statutory definitions.
Effective date: Day
following final enactment.
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4
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Voluntary energy efficiency financing program for
local governments.
Subd. 1. Program authority. Permits local governments to finance energy
improvements to qualifying real property.
Subd. 2. Program requirements. Specifies elements of the loan program and
disclosures that must be made.
Subd. 3. Retail and end use
prohibited. Prohibits retail sales of
energy generated from an improvement financed under this program or from
being provided for off-site end use.
Subd. 4. Financing terms. Provides that the maximum term of a loan cannot
exceed 20 years or the weighted average useful life of the improvements,
whichever is shorter. The principal amount of the loan is limited to ten
percent of the appraised value of the property or the actual cost of the
installation, whichever is less. The interest rate must cover the local
government’s cost of its financing (i.e., the bonds it issues to finance the
loans and projected cost of delinquencies).
Subd. 5. Coordination with other
programs. Requires the financing program to
work with the conservation improvement activities of the utility serving the
property and other public and private energy improvement programs.
Subd. 6. Certificate of participants. Participant must get a certificate of
participation.
Subd. 7. Repayment. Requires a local government financing
improvements under this section to secure repayment with a lien on the
property and to collect repayments using the special assessment collection
process (section 16).
Subd. 8. Bond issuance; repayment. Permits a local government to issue revenue
bonds as provided in Minnesota Statutes, chapter 475. The bonds are payable
only from assessment revenues collected from the repayment and assessments
and not taxes.
Effective date: Day
following final enactment.
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5
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Apprenticeship training facilities. Extends the property tax exemption for apprenticeship
training facilities to property that was previously used by a school, was
exempt for taxes payable in 2010, is located in a township with a population
between 2,000 and 3,000, and will be used for this state-approved
apprenticeship program. Exemption includes up to 10 acres of land on which
the building is located. (Grand Lake Township; St. Louis
County) Also decreases the general city population
requirement from 7,500 or greater to 7,400 or greater. Effective for taxes
payable in 2011 and thereafter.
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6
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Credit for historic structure rehabilitation. Allows a refundable credit or grant-in-lieu of
credit for historic structure rehabilitation based on the similar federal
credit.
Subd. 1. Definitions. Defines “account” as the historic credit
administration account in the special revenue fund, “office” as the State
Historic Preservation Office of the Minnesota Historical Society, “society”
as the Minnesota Historical Society, and “project” as rehabilitation of a certified
historic structure, defined by reference to the federal tax credit.
Subd. 2. Credit or grant allowed. Allows a taxpayer a Minnesota credit equal to
the amount of the federal rehabilitation credit for certified historic
structures. Since the federal credit is a 20-percent credit, this increases
the combined federal and Minnesota credit to 40 percent. Allows a
grant-in-lieu of the credit equal to 90 percent of the credit otherwise
allowed. Allows insurance companies to claim the credit against the
insurance premiums tax.
Subd. 3. Maximum limit; applications; allocations. Provides for $5 million of credits and grants to
be allocated in fiscal years 2011 to 2016 only.
Requires a project developer to apply to the
office for a credit or grant before rehabilitation of the historic structure
begins. Authorizes the office to collect an application fee of up to $5,000 which
is deposited in the account and used for personnel and administrative
expenses of administering the credit, and for preparing the economic impact
report in subdivision 9. Requires the office to accept two rounds of
applications per year, and to allocate credits using an objective scoring
system that includes measures of additional investment leveraged as a result
of the credit, project financing, time anticipated to completion, the number
of construction jobs, the number of on-going jobs created after a project is
placed in service, rehabilitation of vacant properties, and local government
support. Projects that do not receive allocation certificates are refunded
all but $250 of the application fee.
Provides for the office to issue allocation
certificates that reserve credit amounts after a project’s application is
approved. Requires a project to be placed in service within three calendar
years following issuance of the allocation certificate; otherwise the
allocation cancels and is available to the for reallocation, except that
allocations cancelled after the fiscal year 2016 program sunset are not
available for reallocation.
Provides that the recapture and repayment
provisions that apply to the federal credit do not apply to the state credit.
Subd. 4. Credit certificates. Directs the office to issue credit certificates
after the developer notifies the office that a project has been completed and
placed in service. The credit certificate may not exceed the lesser of the
federal credit actually allowed, or the amount on the allocation
certificate. Allows credit recipients to assign the credit certificate to
another taxpayer.
Subd. 5. Partnerships; multiple
owners. Requires the partners or multiple
owners to pass the credits on pro rata to each owner based on the ownership
share as of the last day of the taxable year.
Subd. 6. Refundable. Provides the credit is refundable, if it exceeds
the liability for tax.
Subd. 7. Appropriations. Appropriates the money necessary to pay the
refunds to the commissioner of revenue, and the money necessary to pay the grants
to the State Historical Society. Also appropriates amounts in the historic
credit administration account to the society for personnel and administrative
expenses, and for preparing the economic impact report in subdivision 9.
Subd. 8. Manner of claiming. Authorizes the commissioner of revenue to specify
how the credit will be claimed, including claiming the credit as a separately
processed refund, rather than in the normal income tax filing. Authorizes the state historic preservation
office to specify how grants will be paid.
Subd. 9. Report to legislature. Requires the Minnesota Historical Society to
annually report to the legislature on the economic impact of the credit.
Subd. 10. Sunset. Provides that the credit expires after fiscal
year 2016, except leaves in effect issuance of credit certificates for
projects that were allocated credits before the sunset, and reporting
requirements to provide program information to the legislature.
Effective date: Tax
years 2010 for construction contracts entered into after May 1, 2010.
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7
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Job growth investment credit. Allows the angel investment credit, as described under section 2, to be
claimed against the individual income, corporate franchise, and alternative
minimum taxes. The commissioner of revenue retains the right to audit
eligibility for the credit, despite the certification by the commissioner of
DEED of an investor’s eligibility for the credit. Makes the credit
refundable, and provides an open appropriation for payment of refunds.
Sunset: The credit
expires effective for tax year 2015.
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8
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CARZ sales tax exemption. Provides that the JOBZ sales tax exemption for a zone designated as
a CARZ under section 34 is not
an upfront exemption. Rather, the purchaser must pay the tax and apply for a
refund. These refunds will not be paid until after June 30, 2013 (i.e., in
fiscal year 2014).
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9
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CARZ sales tax exemption. Adds a reference to the CARZ sales tax exemption in the law
providing for imposition of tax and payment of refunds on capital equipment
and other similar exemptions.
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10
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CARZ sales tax exemption. Adds a reference to the CARZ sales tax exemption in the law
providing for imposition of tax and payment of refunds on capital equipment
and other similar exemptions.
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11
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Historic credit; insurance premiums tax. Allows the historic structure rehabilitation
credit under section 6 to be
claimed by insurance companies against the premiums tax. This credit is
refundable.
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12
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Taconite economic development fund. Modifies a current distribution from the taconite
economic development fund that is a loan for a biomass energy facility, to a
loan or grant to a value-added wood product facility that must be located in
the taconite tax relief area in St. Louis County. Also extends the time
period that the loan or grant can be made for this facility from 2010 to
2012. Effective day following final enactment.
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13
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School districts distributions. Provides that if there are insufficient tax
proceeds to make the distributions to the school districts in any year, money
must be transferred from the taconite property tax relief account to the
extent of the shortfall in the distribution. For 2010 there is about a $500,000
shortfall. Effective beginning with distributions made in 2010.
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14
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Investment of fund.
Increases the amount available from the interest and investment earnings on
taconite funds for wage and small business subsidies from $1,000,000 to
$1,500,000 for fiscal years 2010 and 2011.
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15
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Special assessments for energy conservation
improvements. Authorizes cities to finance energy
conservation and renewable energy systems with special assessments as
provided in sections 3 and 4.
Effective date: Day
following final enactment.
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16
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Collection of energy improvement loans as special
assessments. Adds the financing of the
energy improvements authorized in sections 3 and 4, to the
list of costs a local government can recover through the special assessment
collection process.
Effective date: Day
following final enactment.
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17
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Transportation infrastructure loans. Authorizes the Public Finance Authority (PFA) to
make loans to cities for transportation infrastructure projects (as defined
under the PFA statute but even if they do not qualify for federal or state
funding) by issuing revenue bonds to be repaid by city taxes, such as tax
increments or special taxes (lodging, liquor, and similar). These bonds
could be, but would not be required to be, Build America Bonds.
Effective date: Day
following final enactment.
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18
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Project definition; industrial revenue bonds. Adds qualified green buildings and sustainable
design projects, as provided under section 19, to the
list of projects qualifying for the use of industrial revenue bonds.
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19
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Qualified green building and sustainable design
projects. Authorizes the issuance of
industrial revenue bonds for qualified green building and sustainable design
projects, which are projects that the municipality (usually a city) or redevelopment
agency (such as an HRA or EDA) ensures will do one of the following:
·
Reduce the consumption of
electricity, compared to conventional construction
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Reduce CO2 emissions,
compared with energy generated by coal
·
Increase use of solar cells in
the state
·
Increase the use of fuel cells
to generate energy
At least 75 percent
of the building’s square footage must be certified as complying with a
recognized rating system, such as LEED, Green Globes, or GreenStar.
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20
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Compact development TIF district. Defines a “compact development district” as a new
type of TIF district. To qualify, the district must meet a “coverage test”
similar to that which applies to redevelopment districts (i.e., 70 percent of
the parcels must have buildings or similar structures occupying 15 percent of
their square footage) and the planned redevelopment must increase the square
footage of the buildings by three times.
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21
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Tourism TIF, additional counties. Expands the authority to use economic development tax increment
financing (TIF) districts for tourism projects to include counties in Region
1. This will add the counties of Kittson, Roseau, Marshall, Pennington, Red
Lake, Polk, and Norman to those now allowed to use this authority. To
qualify, projects must also be located in counties with incomes that are no
more than 85 percent of the state median income and can not be in a city with
a population of over 20,000.
The following counties
are located in regions that now qualify to use the authority:
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Counties in
Development Regions 2, 3, 4, 5, and 7E
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Aitkin
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Cook
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Koochiching
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St. Louis
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Becker
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Crow Wing
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Lake of the Woods
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Stevens
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Beltrami
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Douglas
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Mahnomen
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Todd
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Carlton
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Grant
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Mille
Lacs
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Traverse
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Cass
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Hubbard
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Morrison
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Wadena
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Chisago
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Isanti
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Otter Tail
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Wilkin
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Clay
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Itasca
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Pine
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Clearwater
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Kanabec
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Pope
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22
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Compact development districts, sunset. Provides that the authority to establish compact
development TIF districts expires on June 30, 2012.
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23
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Compact development districts, duration limits. Specifies that compact development TIF districts
have a 25-year duration limit.
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24
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Permitted spending for compact development districts. Limits the use of increments from the new
compact development TIF districts to the following expenses:
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Administrative expenses
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Land acquisition
·
Demolition and removal of
existing buildings and other site preparation costs
·
Installation of public
infrastructure, but excluding road, highway, street, and parking improvements
that are designed primarily to serve passenger automobiles
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25
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Economic development districts. Eliminates obsolete language relating to specific projects that
were established in the 1990s (elimination of existing paragraphs (b) and
(d)).
The new paragraph (d)
provides temporary authority to use economic development districts for any
type of project, if three conditions are satisfied:
·
The municipality finds the
project will create new jobs in the state, including construction jobs, and
the project otherwise would not have begun before July 1, 2011, without the
assistance
·
Construction of the project
begins no later than July 1, 2011
·
The request for certification
is made by June 30, 2011
Effective date:
Applies to pre-existing districts if the request for certification was made
after June 30, 2009.
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26
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Temporary use of increment. Allows use of surplus or excess increment for construction of new
or substantial rehabilitation of existing buildings, if:
·
Construction begins before
July 1, 2011
·
The development will create
new jobs (including construction jobs)
·
The development would not have
occurred without provision of the assistance
This authority
includes the ability to make equity investments in the development, for
example, if it is necessary to obtain financing. The municipality (usually
the city) must approve and must hold a public hearing with published notice
(following the same rules as apply to approving a new TIF plan).
This authority
expires on December 31, 2011, and does not extend to allow payment of bonds
beyond that date.
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27
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CARZ definition.
Adds a Create Automotive Recovery Zone (CARZ) to the definition of a Job
Opportunity Building Zone (JOBZ) under present law.
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28
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Qualified business definition for CARZ. Requires a qualified business for purposes of
CARZ program to be engaged in assembling motor vehicles in the zone.
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29
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Motor vehicle assembly facility; CARZ. Requires a motor vehicle assembly facility to
have at least 500 employees and to be located in a city of the first class to
qualify for CARZ program benefits.
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30
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CARZ definition.
Defines a CARZ as a zone designed by DEED that contains a motor vehicle
assembly facility (defined in section 29).
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31
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CARZ, maximum size.
Limits the site of the CARZ to a size necessary for the vehicle assembly
operations, ancillary operations, and space for expansions for the reasonably
foreseeable future.
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32
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CARZ site. Exempts
CARZ from the prohibition on designating JOBZs in the seven-county Twin
Cities metropolitan area.
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33
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Duration of CARZ and wind turbine JOBZ. Provides that CARZ benefits will be available
for 12 years from designation of the zone; that is, they will not expire when
regular JOBZ benefits do in 2015.
In addition, this
section authorizes a five year extension of JOBZ tax benefits for a wind
turbine manufacturing facility under consideration for location in Duluth
and/or on the Iron Range. To qualify, the project must be in a county with
an unemployment rate that either is ten percent or higher or is ten percent
higher than the state average for any month in the year before the business
subsidy agreement is signed. The benefits can be provided singly or in
combination to the manufacturing facility, the U.S. headquarters of the
business, or a training facility.
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34
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Authority to designate CARZ. Authorizes the commissioner of DEED to designate one CARZ.
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35
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Designation schedule for CARZ. Allows DEED to designate a CARZ at any time after
December 31, 2011, and before January 1, 2016, if the city enters an
agreement with a qualified automaker to make a minimum investment in the
facility of $100 million.
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36
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Tax incentives in CARZ. Provides that all of the regular tax incentives under JOBZ are
available in CARZ, except that an alternative jobs credit applies as
specified in section 37.
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37
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CARZ jobs credit.
Provides an alternative jobs credit for CARZ equal to $2,500 per employee for
the first 750 FTE employees at the site and a $3,500 credit per FTE employee
for the number of employees at the site over 750. This credit is refundable.
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38
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Bloomington, special taxes. Expands the statement of public purpose in the original Mall of
America (MOA) special legislation for the city of Bloomington to encompass
development of the entire Industrial Development District 1, including
amendments of the district’s area, and specifically including both phases of
the MOA and the Old Cedar Avenue Bridge over the Minnesota River.
Effective date:
Local approval by the city of Bloomington.
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39
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Brooklyn Park, housing replacement authority. Provides a definition of “authority” for the city
of Brooklyn Park’s exercise of housing replacement district authority.
Section 40 grants Brooklyn Park housing replacement district
authority.
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40
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Housing replacement districts. Grants the city of Brooklyn Park authority to exercise housing
replacement district powers for up to 100 parcels. In addition, it increases
the number of parcels permitted in the cities of Crystal, Fridley, Richfield,
and Columbia Heights from 50 to 100 and eliminates the annual limit of ten
parcels.
Effective date: Day
following final enactment.
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41
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Bloomington, use of special taxes; labor peace. Authorizes the city of Bloomington to use the
special taxes authorized to fund development of Phase II of the MOA for any
phase of MOA. As a condition for exercising this authority, the city must
require developers of any hotel on the MOA site to enter a “labor peace”
agreement with the labor union that is most active in representing hotel workers
in Ramsey and Hennepin counties.
Effective date: Local
approval by the city of Bloomington; the labor peace provisions become
effective if the city approves any one of sections 42, 43, 44, or 54.
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42
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Bloomington sales tax, rate. Modifies the city of Bloomington authority to impose a general
sales tax at MOA so that any rate up to 1 percent may be imposed. Present law
requires a minimum rate of 0.5 percent.
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43
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Bloomington, state revenue bond financing. Authorizes the use of the state revenue bonds,
approved to be used for the MOA Phase II development, to be used for any
phase of the development.
Effective date:
Local approval by the city of Bloomington.
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44
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Bloomington, state revenue bond financing. Authorizes the use of the state revenue bonds,
approved to be used for the MOA Phase II development, to be used for any
phase of the development.
Effective date:
Local approval by the city of Bloomington.
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45
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Bloomington, state revenue bond financing. Authorizes the use of the state revenue bonds,
approved to be used for the MOA Phase II development, to be used for any
phase of the development.
Effective date:
Local approval by the city of Bloomington.
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46
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Early separation incentive. Extends and makes mandatory the early retirement incentive for the
Iron Range Resources and Rehabilitation enacted in 2009 until December 31,
2012.
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47
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St. Paul, housing replacement powers. Re-authorizes the city of St. Paul to exercise
housing replacement district powers. This power was granted to the city
under a 1995 special law, but the city did not approve the law and so it lost
the authority to do so in 1997. This would reinstate that authority (not
subject to local approval).
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48
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Oakdale TIF.
Authorizes the city of Oakdale to extend the duration of a tax increment
financing (TIF) district no. 6 (Bergen Plaza) through 2024 (an extension of 8
years). To qualify for this extension, the city must:
·
Enter a development agreement
for the site by July 1, 2011
·
Begin construction of the
infrastructure for the project by November 1, 2011
·
Limit expenditures of
increments from the district to this development and related TIF costs (such
as administration)
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49
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North Mankato TIF. Authorizes
the city of North Mankato to expand the boundaries of a tax increment
financing (TIF) district in the city (District No. IDD 1-8) to add a group of
parcels designated by the section. This district is a redevelopment
district. General law allows cities to expand the area of TIF districts, but
this must be done within 5 years after the district was certified. For
redevelopment districts, the expanded area must meet the blight test. This
district was certified in 1990 and thus is beyond the 5-year period. The
bill exempts the expansion from the requirement of meeting the blight test.
5-year rule. Exempts
the district from the 5-year rule.
Use of increments.
Permits increments to be used to reimburse the city for costs it incurs under
the TIF plan, including future amendments of the plan, and to pay for GO TIF
bonds issued for the district.
Conditions. Subjects
the district to current general TIF law (except as otherwise explicitly
provided by the section’s provisions) and requires the city to enter a
development agreement for the site by July 1, 2011, and to begin substantial
ongoing construction by November 1, 2011, to exercise the special authority.
Effective date: Upon
approval by the city of North Mankato.
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50
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Cohasset TIF.
Authorizes the City of Cohasset to transfer increments from two TIF districts
(No. 2-1 and 3-1) to repay advances the city made from its general fund for
road improvements for the benefit of the district. This authority may only
be used if the city enters a development agreement with a private developer
by July 1, 2011, for development of property to be served by the road and if
substantial and ongoing construction has begun by November 1, 2011.
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51
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2010 distributions.
Provides for distributions to be made in 2010 only (about $8.8 million) to
cities and townships for various public works projects. The amount used is
from the taconite property tax relief fund.
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52
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Tax compliance. Provides
appropriations for additional activities to identify and collect tax
liabilities from individuals and businesses that currently do not pay all
taxes owed, expected to result in new general fund revenues for fiscal year
2011. Requires reports to the legislature on specified performance measures
relating to this initiative. All of the new collection employees hired for
this initiative are to be located in DOR’s Ely office.
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53
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East Grand Forks TIF.
Authorizes the city of East Grand Forks to spend tax increments from two
redevelopment districts for the construction of additional campsites at the
Red River State Recreation Area. These districts were both certified before
the pooling and 5-year rule restrictions took effect and, thus, are not
subject to those rules.
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54
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Repealer. Repeals
the limitation imposed on the city of Bloomington in the 1996 special
legislation authorizing the Met Center and Kelley farm site land swap. This
limitation requires the city and the developer to abide by the public
assistance formula in the restated contract entered into for development of
MOA Phase I. That formula specified the amount of public assistance that the
developer was entitled to receive based on the developer’s investment in the
project. Repeal will allow the city and the MOA company to renegotiate the
terms of this agreement.
Effective date:
Local approval by the city of Bloomington.
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