ST. PAUL, MN – The bipartisan Small Business Caucus continues making progress this session in passing legislation designed to make Minnesota a more competitive place to do business.
Rep. Dean Urdahl, R-Grove City, is a member of the Small Business Caucus, which recently led a jobs bill (HF2695) to passage. The package includes three key initiatives that will support entrepreneurs, free-up capital for small businesses, and spur new innovation in technology development and manufacturing.
“This is an important step in making our state a better place to do business,” Urdahl said. “But we can do even more. Our state’s corporate income tax rate is one of the nation’s highest and an amendment that would have made us more competitive on the global market failed. We also need to put ourselves in position to better compete with our surrounding states.”
The bill’s various programs/credits are paid for by repealing the state’s low-income motor fuels tax credit. Savings from the elimination are estimated at approximately $30.1 million.
The Legislative initiatives driven by the Small Business Caucus and included in the jobs bill include:
•Angel Investor Tax Credit – Provides a 25 percent refundable credit for investments made in a qualifying business with a maximum $125,000 per investor and $1 million per business.
•Research and Development – Expands the state’s Research and Development Credit, with $11 million in new funding FY10-11 and $20.4 million in FY12-13.
•Extends the Research and Development to individual income tax.
Six other bills supported by the Caucus are still moving through the legislative process. Those bills would:
•HF3205 – Help community banks make more capital available for small businesses.
•HF3079 – Responsibly streamline Pollution Control Agency environmental regulations and mandates.
•HF3696 – Adopt fast-track small business formation and registration.
•HF2839 – Create a one-stop online resource assistance network for entrepreneurs.
•HF2849 – Conduct comparative study of Minnesota and Wisconsin small business start-ups.
Dean Urdahl represents District 18B in the Minnesota House of Representatives. The district includes most of Meeker County and a portion of Wright County. This is Urdahl’s fourth term in the Legislature after being elected in 2002, 2004, 2006 and 2008.