469.327 JOBS CREDIT.
Subdivision 1. Credit allowed.
(a) A qualified business is allowed a credit against the taxes
imposed under chapter 290. The credit equals seven percent of the:
(1) lesser of:
(i) zone payroll for the taxable year, less the zone payroll for the base year; or
(ii) total Minnesota payroll for the taxable year, less total Minnesota payroll for the base
(2) $30,000 multiplied by the number of full-time equivalent employees that the qualified
business employs in the international economic development zone for the taxable year, minus
the number of full-time equivalent employees the business employed in the zone in the base
year, but not less than zero.
(b) This section applies only to tax years beginning during the duration of the international
economic development zone.
Subd. 2. Definitions.
(a) For purposes of this section, the following terms have the meanings
(b) "Base year" means the taxable year beginning during the calendar year immediately
preceding the calendar year in which the duration of the zone begins under section
(c) "Full-time equivalent employees" means the equivalent of annualized expected hours of
work equal to 2,080 hours.
(d) "Minnesota payroll" means the wages or salaries attributed to Minnesota under section
290.191, subdivision 12
, for the qualified business or the unitary business of which the qualified
business is a part, whichever is greater.
(e) "Zone payroll" means wages or salaries used to determine the zone payroll factor for the
qualified business, less the amount of compensation attributable to any employee that exceeds
Subd. 3. Inflation adjustment.
For taxable years beginning after December 31, 2010, the
dollar amounts in subdivisions 1, paragraph (a), clause (2); and 2, paragraph (e), are annually
adjusted for inflation. The commissioner of revenue shall adjust the amounts by the percentage
determined under section
290.06, subdivision 2d
, for the taxable year.
Subd. 4. Refundable.
If the amount of the credit exceeds the liability for tax under chapter
290, the commissioner of revenue shall refund the excess to the qualified business.
Subd. 5. Appropriation.
An amount sufficient to pay the refunds authorized by this section
is appropriated to the commissioner of revenue from the general fund.
History: 1Sp2005 c 3 art 10 s 20; 2006 c 259 art 13 s 13