MINNESOTA INCENTIVES

Minnesota shows an average deal value of $9.91 million with 84 new jobs created per deal

MINNESOTA INVESTMENT FUND

The Minnesota Investment Fund provides below-market financing to help add new workers and retain high-quality jobs on a statewide basis.  There is a maximum award of $1 million per project. Funds are awarded to local units of government who provide loans to assist expanding businesses.  After two years, the loan is forgiven, or the low-interest loan is paid-off. Terms are for a maximum of 20 years for real estate investments, and a maximum of 10 years for machinery and equipment.

JOB CREATION FUND

The Minnesota Job Creation Fund is a new statewide performance-based job creation program that is meant to provide targeted incentives, awarded on a project-by-project basis, to businesses looking to expand or relocate in Minnesota.  The fund provides up to $1 million in grants to approved businesses after specified job creation and capital investment goals are achieved. Actual job creation and capital investment rebates are based on project parameters. A minimum of 10 jobs must be created with a minimum of $500,000 in capital investment. 

The amount of award varies based on wages of new full-time positions:

  • $1,000 per new full-time job created with wages over $25,000
  • $2,000 per new full-time job created with wages over $35,000
  • $3,000 per new full-time job created with wages over $45,000

RESEARCH AND DEVELOPMENT TAX CREDIT

The Research and Development tax credit provides a deduction against gross income for research and development expenses.  The tax credit relies on a two-tiered rate structure; a 10% tax credit applies to the first $2 million of qualified research expenses, and a 2.5% tax credit for eligible expenses above $2 million.

GREATER MINNESOTA BUSINESS EXPANSION TAX CREDIT

This program provides sales tax exemptions of up to 12 years to eligible existing businesses located in Greater Minnesota that meet eligibility requirements.  Available tax incentives include sales tax exemption on qualified purchase, property tax exemption for improvements to commercial or industrial property, and an income tax credit based on calculation of wages and number of employees. 

MINNESOTA JOB SKILLS PARTNERSHIP PROGRAM

The Minnesota Job Skills Partnership Program assists businesses by financing the design and implementation of customized job training projects. This fund successfully merges business needs and local customized training opportunities into a winning formula to increase the skills level and wages of the Minnesota workforce. Minnesota participating businesses must partner with an accredited Minnesota educational institution.  The maximum grant award is $400,000, and is awarded to the educational institution to develop and deliver training specific to the business needs.  A cash or in-kind contribution from the participating business must match grant funds on at least a one-to-one basis.  A short-form application is available for grants of up to $50,000.

OTHER MINNESOTA INCENTIVE PROGRAMS

  • Small Business Development Loan Program
  • State Small Business Credit Initiative
  • Angel Tax Credit for Business
  • Border Cities Enterprise Zone Program
  • Job Opportunity Building Zone
  • Urban Initiative Loan Program
  • Indian Business Loan Program
  • Minnesota Reservist and Veteran Business Loan Proram
  • Small Business Technology Transfer Program
  • Foreign Trade Zones