Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

CARZ proposal revs up

Published (3/4/2010)
By Lee Ann Schutz
Share on: 



CARZ, the governor’s proposed incentive to help keep the St. Paul Ford plant in operation, was held over by the House Taxes Committee March 3 for possible inclusion in its omnibus bill.

Ford has threatened to close the plant in recent years, but the facility received a reprieve until at least the end of 2011 as sales of the Ranger truck it produces have increased.

Sponsored by Rep. Michael Paymar (DFL-St. Paul), HF2329, the Create Automotive Recovery Zone proposal, focuses on creating a series of state and local tax exemptions to help make the site viable to Ford or another vehicle manufacturer.

Under the bill, a special tax zone would be created around the plant and exist for 12 years. To be eligible for tax incentives, guidelines call for a business with a minimum of 750 full-time positions, plus an additional incentive of $3,500 would be offered for every new, permanent job above the minimum. There would be no incentives for contracted employees.

St. Paul Mayor Chris Coleman said the proposal is about retaining and growing jobs, calling the facility a significant asset to his city. He called the CARZ proposal a sign to other employers that the state is serious about keeping and attracting businesses. “Unless we as a state get more aggressive to target these jobs, we won’t have these jobs,” he said.

Committee Chairwoman Rep. Ann Lenczewski (DFL-Bloomington) said that, as with any other tax credit proposal, there is a price tag, and questioned how it would be funded.

Rep. Keith Downey (R-Edina) said that the governor’s supplemental budget pays for the credit through cuts.

“We hear that we have a bad tax climate, but we don’t account for the jobs that are losing because of cuts,” countered Rep. Tina Liebling (DFL-Rochester).

The bill’s companion, SF1232, sponsored by Sen. Ellen Anderson (DFL-St. Paul), was laid over by the Senate Taxes Committee for possible inclusion in an omnibus bill.

Session Weekly More...


Session Weekly Home



Related Stories


Revenue raiser raises none
Tax reprieve for flood victims
(view full story) Published 6/1/2010

Betting on TIF
Expanded use of development tool key component to ‘jobs’ new law
(view full story) Published 4/8/2010

Finding funding
Tax ‘jobs’ bill struggles its way to the House floor
(view full story) Published 3/25/2010

Targeting investment
Projects ready to go by July 1, 2011, could benefit from tax bill
(view full story) Published 3/18/2010

At Issue: Holding firm on funding positions
Historic deficit magnifies differences on how to pay for state services
(view full story) Published 5/29/2009

At Issue: Dealing with difficult reform
Tax bill squeaks by House floor, conferees begin work
(view full story) Published 5/1/2009

First Reading: Mustering courage and bold reform
‘Tough’ choices made in tax bill; new bracket created, some loopholes closed
(view full story) Published 4/24/2009

Minnesota Index: Taxes
Figures and statistics on taxes in Minnesota
(view full story) Published 4/24/2009

At Issue: Innovating property taxes
House division chair takes a stab at reform
(view full story) Published 4/3/2009

At Issue: Giving back local control
Counties could have option to impose sales tax
(view full story) Published 3/27/2009

First Reading: Making the state more progressive
Tax chairs take a stab at reform
(view full story) Published 3/20/2009

At Issue: Challenges ahead for taxpayers
Division seeks public’s input into property tax issues
(view full story) Published 1/9/2009