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Minnesota House of Representatives

State Representative Tim Sanders

259 State Office BuildingState Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4226

For more information contact: House GOP Communications 651-296-5520

Posted: 2012-03-30 00:00:00
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NEWS COLUMN

March 30 Legislative Update

Neighbors,

The House recently passed the Tax Relief and Job Creation Act. The Tax Relief and Job Creation Act will make Minnesota a more economically competitive and attractive place for job creation. This provides a reduction in the statewide business property tax rate to help businesses invest in employees and growth. It encourages high-growth industries to make Minnesota a magnet for the medical device and bio-technology industry. It also provides incentives to create a well-trained work force in Greater Minnesota and help the veterans who fought for our county find jobs at home. Lastly, the Tax Relief and Job Creation Act targets new benefits and reforms existing ones to ensure they help more Minnesota-based businesses, especially in rural Minnesota.

This bill focuses on growing jobs and business in Minnesota to encourage businesses to stay, expand, and move here. Listed below are some of our specific initiatives and ideas from the Tax Relief and Job Creation Act:


Business Property Tax

· Phases out statewide tax on business property over 12 years beginning in 2014.

· Exempts 70% on first $150,000 of value for all business property in tax year 2013 ($55 million), especially beneficial for rural small businesses.

· Freezes statewide tax on business property for one year.

· Reformulates the FOC deduction, allowing to re-invest in Minnesota job creation.

Angel Investor Credit

· Increases annual limit from $12 million to $17 million, which is a permanent increase.

· The full amount of the Angel Investor Credit has been utilized since the program’s inception.

· In 2011, the $16 million allocated to the program ran out in mid-November resulting in numerous applications being rejected and Minnesota lost out on new jobs. The $12 million that was allocated for 2012 was anticipated to run out by late July.

· Currently only 6 percent of the investment is in Greater Minnesota. Our bill enhances effort to push more investment in Greater Minnesota. If 30% of investment is not in Greater Minnesota by the end of 2013, then Angel Investors will receive a 40% credit (instead of 25%) for investing in Greater Minnesota.

Growing the BioTech Industry

· Minnesota should be a magnet for high-growth medical device and biotech industries.

· Our bill helps small, start-up biotech companies partner with larger, profitable companies to gain access an immediate infusion of cash so they can hire more employees.

· As it can take years for government approval of medical devices (etc.) our program will give companies a chance to stay afloat and create/retain jobs while they wait for approval.

· Program is based on a similar successful program that created thousands of jobs in New Jersey.

Helping Small Businesses

· Allows small businesses (less than $1 million and less than 20 employees) to take up-front capital equipment exemption rather than get it through a refund.


Please contact my office at 651-296-4226 with any state legislative questions or concerns you may have.


Have a great weekend.

Tim

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