HF 1796

as introduced - 89th Legislature (2015 - 2016) Posted on 03/12/2015 02:03pm

A bill for an act
relating to economic development; creating new business park job development
zones; authorizing tax credits; appropriating money.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin NEW BUSINESS PARK JOB DEVELOPMENT ZONES.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $1,000,000 is appropriated in fiscal year 2016 from
the general fund to the commissioner of employment and economic development for the
purpose of administering new business park job development zones. This is a onetime
appropriation and is available until expended.
new text end

new text begin Subd. 2. new text end

new text begin New business park job development zones. new text end

new text begin Tax credits under subdivision
3 are available to cities that:
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new text begin (1) have a population of less than 1,000 as of the 2010 census;
new text end

new text begin (2) own land within the city limits and have designated ten acres or less of the land
as a business park, none of which is occupied by an existing business;
new text end

new text begin (3) are making lots available within the business park to businesses at no cost to the
business; and
new text end

new text begin (4) have designated the business park as a new business park job development zone
and adopted a development plan that addresses:
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new text begin (i) the viability of the development plan;
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new text begin (ii) public and private commitment to the development plan;
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new text begin (iii) how the grant would relate to the development of the business park and the
city as a whole; and
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new text begin (iv) how the local regulatory burden will be eased for businesses operating in the
business park.
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new text begin The development plan must include a map of the proposed new business park job
development zone.
new text end

new text begin Subd. 3. new text end

new text begin Credit authorized. new text end

new text begin Qualified property in a new business park job
development zone is allowed a credit against the tax imposed under Minnesota Statutes,
chapter 272, of up to $5,000 per lot, for up to five taxable years, but in no event may the
credit under this section exceed $100,000 per business park job development zone over
a five-year period. For the purposes of this section, "qualified property" means class 3
property as defined in Minnesota Statutes, section 273.13, that is located in a zone and
contains newly constructed improvements after the zone was designated, including the
land that contains the improvements. The city must pay the amount of the credit, as
determined under the terms of the credit approved by the commissioner, to the owner
of the qualified property.
new text end

new text begin Subd. 4. new text end

new text begin Application; certification. new text end

new text begin Cities must apply to the commissioner
of employment and economic development for the credit under this section. In its
application, the city must specify the proposed percentage, maximum amount, and any
other parameters of the requested credit. The commissioner shall issue credits on a
first-come, first-served basis after certifying the city has supplied a viable development
plan under subdivision 2. The commissioner shall certify credits in an amount no greater
than the amount appropriated under subdivision 1.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable beginning
after January 1, 2015.
new text end