.................... moves to amend H.F. No. 1676 as follows:
Delete everything after the enacting clause and insert:
"Section 1. [469.352] PERFORMANCE REWARDS ON FAST INVESTMENT
1.5 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.6have the meanings given.
1.7(b) "Business" means an individual, corporation, partnership, limited liability
1.8company, association, or other entity.
1.9(c) "Commissioner" means the commissioner of employment and economic
1.10development unless stated otherwise.
1.11(d) "New full-time equivalent position" means a position that:
1.12(1) is created at a PROFIT business during the taxable year; and
1.13(2) has annualized expected hours of work of at least 1,950 hours.
1.14(e) "Performance rewards on fast investment today (PROFIT) business" means a
1.15business that is designated by the commissioner under subdivision 4.
1.16(f) "Taxing authority" means a county, home rule charter or statutory city, town,
1.17school district, or joint powers board under section 471.59 acting on behalf of local
1.18government units with jurisdiction to tax in the applicable geographic area.
1.19(g) "Wages" has the meaning given in section 290.92, subdivision 1, clause (1).
1.20(h) "Agreement" or "business subsidy agreement" means a business subsidy
1.21agreement under section 116J.994 that must include but is not limited to: specification of
1.22the duration of the agreement, job goals and a timeline for achieving those goals over the
1.23duration of the agreement, and construction and other investment goals and a timeline
1.24for achieving those goals over the duration of the agreement. The commissioner shall
1.25annually verify whether the terms of the agreement are being met by the participating
2.1 Subd. 2. PROFIT business designation; eligibility requirements. (a) To be
2.2eligible for designation as a PROFIT business, a business must satisfy all of the following
2.4(1) the business is engaged in at least one of the following activities as its PROFIT
2.5business activity in Minnesota:
2.9(iv) information technology;
2.11(vi) insurance; or
2.12(vii) professional or technical services; and
2.13(2) a business has entered into a business subsidy agreement with the commissioner
2.14and the appropriate local taxing authority specifying the length of the subsidy, the job
2.15creation goals, wage rates, and investment goals for the duration of the subsidy. An
2.16agreement under this subdivision must include the following minimum requirements:
2.17(i) creation of at least ten new full-time equivalent positions within the first two
2.18years of designation as a PROFIT business. Positions or employees moved or relocated
2.19from another location of the business in Minnesota must not be included in any calculation
2.20or determination of job creation or new positions under this section. A business may
2.21not terminate, lay off, or reduce the working hours of any employee for the purpose of
2.22hiring an individual to satisfy job creation goals under this section. Each new full-time
2.23equivalent position must pay:
2.24(A) an hourly wage of at least $16.80 per hour for businesses located in the
2.25seven-county metropolitan area as defined in section 473.121, subdivision 2; or
2.26(B) an hourly wage of at least $13.00 per hour for businesses located in all other
2.27areas of the state; and
2.28(ii) investment of at least $500,000 in a construction project in the taxing authority's
2.29jurisdiction during the two years immediately following designation as a PROFIT
2.30business. For the purposes of this section, "construction project" includes a new,
2.31expanded, or remodeled facility and an expenditure of up to $250,000 for machinery and
2.32equipment for use or operation at the location of the PROFIT business.
2.33(b) A business that is primarily engaged in making retail sales to purchasers who are
2.34physically present at the business location in Minnesota, lobbying, political consulting,
2.35leisure, hospitality, gaming, or professional services provided by attorneys, accountants,
3.1business consultants, physicians, or health care consultants, is not eligible for designation
3.2as a PROFIT business.
3.3 Subd. 3. Local approval. (a) Any business seeking PROFIT designation by the
3.4commissioner shall submit an application for approval to each affected taxing authority
3.5affected by the tax refunds provided under this section.
3.6(b) Applications for local approval shall be made on a form and follow procedures
3.7and deadlines established by the commissioner.
3.8(c) In considering an application for local approval, each taxing authority shall
3.10(1) the eligibility requirements under subdivision 2;
3.11(2) potential increases in economic activity generated by the applicant in the taxing
3.13(3) results of a cost benefit analysis of the potential economic activity generated by
3.14the applicant and the revenue implications of potential tax refunds under this section.
3.15(d) Local taxing authorities shall notify the commissioner, on a form established by
3.16the commissioner, of applications for which local approval has been granted.
3.17 Subd. 4. Designation by the commissioner. (a) Upon receiving notification of
3.18local approval under subdivision 3, the commissioner shall review the determination by
3.19the local taxing authorities, the subsidy agreement, and eligibility requirements under
3.20subdivision 2, to determine whether it is in the best interests of the state and local taxing
3.21area to designate a business as a PROFIT business.
3.22(b) Prior to approving the proposed designation of a business under this subdivision,
3.23the commissioner shall also consider the following:
3.24(1) the economic outlook of the industry in which the business engages;
3.25(2) the projected sales of the business that will be generated from outside the state
3.27(3) how the business will build on existing regional, national, and international
3.28strengths to diversify the state's economy;
3.29(4) whether the business activity would occur without public financial assistance;
3.30(5) the effect of public financial assistance on industry competitors;
3.31(6) the job creation and investment goals of the proposed subsidy agreement that
3.32exceed the minimum requirements under subdivision 2, paragraph (a), clause (2); and
3.33(7) any other criteria the commissioner deems necessary.
3.34 Subd. 5. Certification for tax benefits. (a) The commissioner must initially certify
3.35a PROFIT business as eligible to receive tax refunds under subdivisions 6 to 9, if the
3.36business has met the jobs creation and wage goals, and investment requirements of the
4.1agreement in the two years immediately following designation as a PROFIT business.
4.2The commissioner must notify the commissioner of revenue that the business is eligible
4.3for tax refunds under subdivisions 6 to 9. Any PROFIT business that fails to achieve
4.4initial certification under this paragraph is deemed ineligible for future certification under
4.6(b) Each year after initial certification under paragraph (a), the commissioner must
4.7verify that a business has continued to meet the requirements of the subsidy agreement and
4.8certify to the commissioner of revenue that a business is eligible for the tax refunds. For
4.9any year after the two-year period immediately following designation, a PROFIT business
4.10that fails to maintain the minimum job creation goals under subdivision 2, paragraph (a),
4.11clause (2), is ineligible to receive tax refunds.
4.12(c) Tax refunds under this section are available only for real and personal property
4.13located at, or goods or services used or consumed at, PROFIT business locations that are
4.14covered by the business subsidy agreement under this section and have been approved by
4.15the local taxing authorities and the commissioner.
4.16 Subd. 6. Tax refunds; percentage; duration. (a) A business that is certified under
4.17subdivision 5 is eligible for the following tax refunds for up to 12 years from the date of
4.18initial certification of eligibility by the commissioner under subdivision 5, paragraph (a):
4.19(1) the property tax refund for certain improvements as provided in subdivision 7;
4.20(2) a refund for sales and use tax and any local sales and use taxes on qualifying
4.21purchases as provided in subdivision 8; and
4.22(3) a refund for the state sales tax on motor vehicles and any local sales tax on motor
4.23vehicles as provided under subdivision 9.
4.24(b) A refund of property, sales, or motor vehicle taxes paid may be paid upon filing
4.25with the commissioner of revenue a claim for refund in the form and manner prescribed
4.26by the commissioner of revenue.
4.27(c) The commissioner of employment and economic development shall determine
4.28the percentage of tax refunds that a PROFIT business may receive based on the
4.29performance of the business in reaching the subsidy agreement goals in the prior 12
4.30months. The commissioner shall certify the percentage of tax refunds to the commissioner
4.31of revenue. No tax refund may be paid without certifications of eligibility and percentage
4.32of tax refunds from the commissioner of employment and economic development.
4.33 Subd. 7. Property tax refund. (a) The property tax imposed on the increase in tax
4.34capacity resulting from the value of improvements made to real property and personal
4.35property, classified under section
273.13, subdivision 24, and owned and operated by a
4.36PROFIT business, may be refunded as provided in this subdivision.
5.1 (b) For property to qualify for the refund, the occupant must be a PROFIT business.
5.2 (c) A PROFIT business is eligible for the refund beginning the first assessment year
5.3after the business is certified by the commissioner. To be eligible, the property must be
5.4occupied by July 1 of the assessment year by a PROFIT business.
5.5 (d) A PROFIT business must notify the commissioner of revenue in writing of
5.6eligibility under this subdivision by July 1 in order to begin receiving the refund under this
5.7subdivision in the following year.
5.8(e) The refund is distributed and continues annually as long as the qualified PROFIT
5.9business continues to be certified as eligible under subdivision 5.
5.10 Subd. 8. Sales and use tax refund. (a) A PROFIT business is eligible for a refund
5.11of taxes paid under chapter 297A on the purchase and use of construction materials,
5.12services, and supplies used or consumed in, including equipment incorporated into, real
5.13property owned by a PROFIT business if used in the conduct of a PROFIT business
5.14and the purchase was made and delivery received during the duration of the PROFIT
5.16(b) The refund under this subdivision applies regardless of whether the purchases are
5.17made by the PROFIT business or a contractor hired to perform work or provide services at
5.18the PROFIT business location.
5.19(c) The tax must be refunded in the manner provided under section 297A.75.
5.20 Subd. 9. Motor vehicle tax refund. (a) A PROFIT business is eligible for a refund
5.21of taxes paid under chapter 297B on the purchase of a motor vehicle if the motor vehicle
5.22is primarily used as part of or in direct support of the business operations of a PROFIT
5.23business. The refund applies to sales if the purchase was made and delivery received
5.24during the duration of the PROFIT business designation. The refund also applies to any
5.25local sales and use tax.
5.26(b) The tax must be refunded in the manner provided under section 297B.031.
5.27 Subd. 10. Appropriation. An amount sufficient to pay the refunds under
5.28subdivisions 7 and 8 is appropriated to the commissioner of revenue from the general
5.29fund. An amount sufficient to pay the refunds under subdivision 9 is appropriated
5.30proportionately from the accounts and funds under section 297B.09, paragraph (f).