Legislative Session number- 86

Bill Name: SF1777

Relating to taxation

ARTICLE 1 - JOB INCENTIVES AND ECONOMIC
STIMULUS

Repealing the political contribution income or franchise tax refund;
modifying the definition of taxpayer; defining small business stock; providing
for the gradual reduction of corporate franchise tax rates; providing a refund
for qualified property purchases by small businesses; modifying the corporate
alternative minimum tax; modifying the residential homestead market value
property tax credit; modifying the definition of rent constituting property
taxes for property tax refund purposes and certain rent percentages; modifying
the incentive payment for the sustainable forest resource management program;
modifying the capital equipment sales tax exemption; modifying the taconite
production tax

ARTICLE 2 - GREEN JOB OPPORTUNITY BUILDING
ZONES

Establishing green job opportunity building zones (green JOBZ),
defining terms, specifying limitations, providing an application for designation
procedure, eligibility and criteria, providing for business subsidy agreements
and reports, green job opportunity building zones designation, available tax
incentives, individual income and corporate franchise tax exemptions, green jobs
credit, property tax exemption and wind energy production tax exemption,
requiring a tax benefit report from qualifying businesses, providing income tax
benefits, allowing an income tax jobs credit, requiring tax benefits repayment
by businesses no longer operating in a zone and continuing eligibility
certification, specifying agreement breaches and prohibition against amendments
to business subsidy agreements, allowing state auditor audits

ARTICLE 3 -
MINNESOTA SMALL BUSINESS INVESTMENT COMPANY CREDIT

Providing a Minnesota
small business investment company credit, defining terms, specifying
requirements, aggregate limitations on investment credits allocation, continued
certification requirements, reporting requirements, distributions, audit,
certification revocation, registration requirements, reporting, credit allowed
and repayment upon decertification

ARTICLE 4 - JOB GROWTH INVESTMENT TAX
CREDIT

Providing a job growth investment tax credit, defining terms,
specifying
qualified regional investment fund requirements, funds certification
and
requirements and individual investors certification, allowing a job
growth
investment tax credit

ARTICLE 5 - AIDS TO LOCAL
GOVERNMENTS

Modifying local government aid; modifying the market value
homestead
credit reimbursement; providing for county program aid adjustments;
modifying the city formula aid and city aid distribution; requiring the
commissioner of revenue to compute certain 2009 city and county aid reductions;
modifying general distribution requirements and payments to counties for natural
resources land; repealing a certain provision relating to certain appropriation
aid adjustments

ARTICLE 6 - FEDERAL UPDATE

Updating certain state income
tax and property tax refund provisions to changes in the internal revenue code
(IRC) and updating the definition of internal revenue code under tax
administration and compliance provisions; prohibiting commissioner of revenue
from assessing tax penalty or interest
against an employer for failing to
withhold tax from differential wages to an
employee called to active duty in
the military
(je)