Accessibility menu
State Representative Jim Davnie
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-0173
For more information contact: Nick Halter 651-297-1934
Press/News Releases
Jobs for Minnesotans
St. Paul, MN – The Minnesota House passed legislation today designed to create as many as 12,000 jobs statewide, primarily in the fields of bioscience, manufacturing, construction and the green economy.
“This bill is a main ingredient in our jobs agenda for the session," said State Rep. Jim Davnie, “Through measures like the Angel Investment and Historic Rehab tax credits we not only provide Minnesotans with jobs but also lay the groundwork for high-tech companies to call Minnesota home. In a time when the economy is changing rapidly, we need to work with our entrepreneurs to develop dynamic ideas.”
The bill focuses primarily on a variety of new tax incentives for investors who provide money for small businesses, historical building renovations, small high-tech companies, manufacturers and eco-friendly businesses.
The provisions in the bill are targeted to the immediate challenges facing Minnesota. The Angel Investment and Historic Rehabilitation Tax Credits will drive investment in private-sector ventures. The Research and Development Credit is increased, and several communities are provided more flexibility in the use of Tax Increment Financing (TIF) for “shovel ready” projects. The legislation would also provide greater TIF flexibility for developers at the Mall of America, without increasing the burden on property taxpayers.
The Angel Investment Credit will provide a 25% credit for investments made in qualifying business, while the Historic Credit allows for a 20% state credit to match a federal credit available for historic structure rehabilitation for certified historic projects. There is also a provision in the bill designed after the JOBZ program, making the Ford Motor Plant a CARZ zone. Davnie said this provision was included with the hope of discouraging Ford Motor Company from closing this plant, thereby eliminating thousands of jobs.
TIF creates funding for "public" projects that may otherwise be unaffordable to cities by borrowing against future property tax revenues. It is projected the value of the property will increase once it’s developed, and the future gains in taxes will be used to finance the current improvements.
As a result of the legislation passed today, TIF increments from existing districts can be used to help finance private development that would otherwise not have enough equity to receive bank financing. Temporary authority is granted for the creation of new TIF districts that will create jobs, and a city or county can issue industrial revenue bonds to finance the cost of certified green buildings.
A new type of TIF district, called a Compact TIF District, can be created to encourage compact, transit-friendly redevelopment, and this option can also be used to rehabilitate houses that have been blighted by foreclosure.
“These are all useful tools for investors and innovators,” said Davnie. “But more importantly, it gives everyday Minnesotans the opportunity to start a career in the industries that will dominate the next century. We need to realize that median family income is slipping. That job creation in Minnesota is declining. With measures like these we can help Minnesota fight these problems.”
This bill also provides communities with the necessary tools to make improvements protect historic sites and develop the jobs of the future through an increased investment in research and development.
“This legislation wouldn’t have been passed without the patience and resourcefulness of its main author, Representative Ann Lenczewski, Speaker of the House Margaret Kelliher, and Representative Tim Mahoney, one of its champions,” said Davnie.
After the bill passes the Senate it will make its way to the Governor’s desk for signing.
News Items
- Republicans Choose Banks Over Middle Class Homeowners - (Posted: 2012-03-27 00:00:00)
- Health care access - (Posted: 2011-07-29 00:00:00)
- K-12 Finance and Policy - (Posted: 2011-07-28 00:00:00)
- Archived News Items
- Subscribe to RSS News Feeds
- Read more about RSS.