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State Representative Kurt Zellers
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-5502
For more information contact: Jodi Boyne 651-296-0640
NEWS RELEASE
TAX RELIEF AND JOB CREATION ACT PASSES MINNESOTA HOUSE Bill provides small business tax relief and job creation incentives
Saint Paul -- (May 1, 2012) -- The Minnesota Legislature today approved the Tax Relief and Job Creation Act. The bill encourages long-term economic growth including statewide business property tax relief, investment in programs that will foster job creation, and job training and placement programs targeted toward Greater Minnesota and veterans. The bill also includes targeted property tax relief for homeowners.
"The Tax Relief and Job Creation Act keeps money in the pocket of small business owners who know how to create jobs and invests in programs that will help create jobs for Minnesotans," said Speaker of the House Kurt Zellers (R-Maple Grove). "We also provide targeted property tax relief to homeowners."
The Tax Relief and Job Creation Act permanently froze the automatic inflator on the statewide levy for commercial and industrial properties.
"Minnesota’s business property tax rate ranks among the highest in the United States. By freezing the inflator we are helping small businesses across the state to keep more of their money to invest in employees and growth, not burdensome regressive taxes that hinder development and expansion," Zellers said.
Zellers said small businesses will also benefit from the bill as a result of changes made in how the state collects sales taxes. The bill permanently provides an upfront sales tax exemption on capital equipment purchase on small businesses and eliminates the accelerated sales tax remittance for 11 months of the allowing small businesses assistance with monthly cash flow and relieving them of burdensome accounting requirements to help free up capital.
"The upfront sales tax exemption means more than $50 million per year will stay in the pocket s of small business job creators," Zellers said. "It is a long overdue reform for our small business community."
The bill also provides targeted property tax relief to homeowners who have experienced increased property taxes. Homeowners would receive 90% of the amount over 12% this year and 75% after that. There are no income restrictions this plan but the increase must be at least $100 in one year.
The Tax Relief and Job Creation Act also supports investment in designed to foster economic development of job creation in Minnesota. These programs include:
Provides $5 million in increased funding for the Angel Investment Tax Credit for the duration of the program and enhances effort to push more investment in Greater Minnesota.
Increases the Research and Development credit by 24% for Minnesota companies to help encourage entrepreneurship and make Minnesota a more attractive place to do business.
Provides $2 million in increased funding to the Minnesota Investment Fund, which helps spur economic growth and job creation across Minnesota.
"These investments are designed to attract high growth, emerging industries that will bolster our economy and create good-paying jobs for Minnesotans," Zellers said.
The Tax Relief and Job Creation Act also creates a internship grant program that is aimed at attracting and keeping talent in Greater Minnesota and provides a $3000 tax credit of up to for employers who hire veterans who are disabled, unemployed or receive food stamps.
The bill is waiting for action in the Minnesota Senate.
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