HF 2686

as introduced - 89th Legislature (2015 - 2016) Posted on 03/08/2016 04:42pm

A bill for an act
relating to economic development; small business investment tax credit;
modifying certain penalties; amending Minnesota Statutes 2014, section
116J.8737, subdivision 6.

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

Section 1.

Minnesota Statutes 2014, section 116J.8737, subdivision 6, is amended to
read:

Subd. 6.

Annual reports.

(a) By February 1 of each year each qualified small
business that received an investment that qualified for a credit, and each qualified investor
and qualified fund that made an investment that qualified for a credit, must submit an
annual report to the commissioner and pay a filing fee of $100 as required under this
subdivision. Each qualified investor and qualified fund must submit reports for three
years following each year in which it made an investment that qualified for a credit, and
each qualified small business must submit reports for five years following the year in
which it received an investment qualifying for a credit. Reports must be made in the form
required by the commissioner. All filing fees collected are deposited in the small business
investment tax credit administration account in the special revenue fund.

(b) A report from a qualified small business must certify that the business satisfies
the following requirements:

(1) the business has its headquarters in Minnesota;

(2) at least 51 percent of the business's employees are employed in Minnesota, and
51 percent of the business's total payroll is paid or incurred in the state;

(3) that the business is engaged in, or is committed to engage in, innovation in
Minnesota as defined under subdivision 2; and

(4) that the business meets the payroll requirements in subdivision 2, paragraph
(c), clause (6).

(c) Reports from qualified investors must certify that the investor remains invested
in the qualified small business as required by subdivision 5, paragraph (g).

(d) Reports from qualified funds must certify that the fund remains invested in the
qualified small business as required by subdivision 5, paragraph (g).

(e) A qualified small business that ceases all operations and becomes insolvent
must file a final annual report in the form required by the commissioner documenting
its insolvency. In following years the business is exempt from the annual reporting
requirement, the report filing fee, and the fine for failure to file a report.

(f) A qualified small business, qualified investor, or qualified fund that fails to file an
annual report as required under this subdivision is subject to a deleted text begin $500 deleted text end new text begin $100 new text end fine.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end