1.1    .................... moves to amend H. F. No. 2362, the delete everything amendment
1.2A07-0842 as follows:
1.3Page 105, after line 21 insert:

1.4    "Sec. 12. [290.0681] RURAL ECONOMIC GROWTH CREDIT.
1.5    Subdivision 1. Credit name. The credit allowed by this section shall be known as
1.6the "Rural Minnesota Catch-Up Credit."
1.7    Subd. 2. Definitions. (a) For purposes of this section, the following terms have
1.8the meanings given.
1.9    (b) "Eligible county" means a county, located outside the metropolitan area, as
1.10defined in section 473.121, subdivision 2, that experienced, between 1994 and 2004, a net
1.11new job growth rate of less than 15.6 percent, or a county that has a population of less
1.12than 25,000 according to the 2000 census.
1.13    (c) "Qualifying job" means a job in an industry that produces goods or services
1.14that bring outside wealth into an eligible county. A qualifying job includes jobs in
1.15the following industries: value-added manufacturing, technologically innovative and
1.16information industries, forestry, mining, agriprocessing, and tourism attractions. At a
1.17minimum, a qualifying job must provide full-time employment and pay not less than $12
1.18per hour, or $10 per hour plus health insurance benefits, or its equivalent. A qualifying job
1.19does not include any job for which a tax credit is received under section 469.318 or for
1.20which a grant is made under section 469.309.
1.21    Subd. 3. Credit allowed. A taxpayer that is awarded a credit under subdivision 4
1.22may take a credit against the tax imposed by this chapter, equal to $4,000 per qualifying
1.23job created by the taxpayer, per year for three years, and $3,000 in the fourth year.
1.24    Subd. 4. Qualification; application. (a) To qualify for a credit under this section, a
1.25taxpayer must create a new qualifying job within an eligible county. The taxpayer must
1.26create the qualifying job within 12 months of being awarded the credit. If a taxpayer does
2.1not create the qualifying job within 12 months, the credit is forfeited and, if claimed by
2.2the taxpayer, subject to recapture, and the credit amount accrues back to the eligible
2.3county for allocation under subdivision 5.
2.4    (b) A taxpayer seeking a credit under this section must apply to an eligible county at
2.5least 60 days before the award date in paragraph (c) on a form and in a manner prescribed
2.6by the commissioner of employment and economic development.
2.7    (c) Eligible counties shall award credits under this section once each year, by March
2.815. An eligible county shall publish a notice advertising the award date, at least 90 days
2.9before the date. The county board of commissioners of an eligible county, or the duly
2.10appointed representatives of the county board of commissioners, shall award credits
2.11under this section to applicants using uniform criteria established by the commissioner
2.12of employment and economic development. In selecting among applicants for awarding
2.13credits under this section, criteria must contemplate and place greater weight on the
2.14following factors: whether the qualifying job provides higher wages, better benefits, or
2.15on-the-job training; whether the taxpayer's business is locally owned and owns, rather than
2.16leases, its own facilities or buildings; whether the taxpayer's business provides employee
2.17stock ownership plans or employee profit sharing; and whether a higher percentage of
2.18the business's employees are hired with tax credits under this section. For purposes of
2.19this section, "duly appointed representatives" include a county or regional economic
2.20development agency or authority.
2.21    Subd. 5. Limitation; carryforward. (a) The total amount of credits under this
2.22section may not exceed $150,000 per eligible county over two years. If a county fails to
2.23award $150,000 within a year, it may carry forward the amount that remains unawarded
2.24to the following year. Unawarded amounts may not be carried beyond the following
2.25year and are lost.
2.26    (b) A taxpayer may claim the credit under this section for the year following the
2.27year in which the new qualifying job is created and for each year the new qualifying job
2.28remains in existence, up to a maximum of four years or $15,000 per qualifying job created.
2.29The taxpayer may claim the credit under this section for years in which the qualifying job
2.30was in existence for the entire year. A credit under this section is awarded to the taxpayer
2.31for, and attaches to, a designated employee. If the designated employee for whom a credit
2.32under this section was awarded leaves the employment of the taxpayer for any reason,
2.33the remaining credit the taxpayer would otherwise be eligible to receive is forfeited and
2.34may not be claimed by the taxpayer unless a replacement employee is hired to fill the
2.35qualifying job within a reasonable period, not to exceed three months. Credit amounts
3.1forfeited under this paragraph accrue back to and may be awarded by an eligible county as
3.2if the amount had been unawarded, as provided in paragraph (a).
3.3    Subd. 6. Credit refundable. If the amount of credit that the taxpayer is eligible to
3.4receive under this section exceeds the liability for tax under this chapter, the commissioner
3.5shall refund the excess to the claimant. An amount sufficient to pay the refunds authorized
3.6by this subdivision is appropriated to the commissioner from the general fund.
3.7    Subd. 7. Manner of claiming. The commissioner shall prescribe the manner in
3.8which the credit may be issued and claimed. This may include providing for the issuance of
3.9credit certificates or allowing the credit only as a separately processed claim for a refund.
3.10    Subd. 8. Report. The commissioner of employment and economic development
3.11shall provide a written report to the legislature by February 15, 2009, in compliance with
3.12Minnesota Statutes, sections 3.195 and 3.197, on credits claimed under this section and
3.13shall evaluate the feasibility and benefit of continuing the program. The commissioner
3.14may consult with the commissioner of revenue in preparing this report.
3.15    Subd. 9. Expiration. This section expires for taxable years beginning after
3.16December 31, 2011.
3.17EFFECTIVE DATE.This section is effective January 1, 2008."
3.18Renumber the sections in sequence and correct the internal references
3.19Amend the title accordingly