HF2221

Purpose of the Bill

The bill aims to support businesses by providing financial incentives for advertising locally. It introduces a tax credit to encourage individual and corporate entities to increase their investment in local media advertising.

Main Provisions

• Tax Credit for Advertising: This bill allows a credit against the individual income tax and corporate franchise tax for expenses incurred on local media advertising.
• Modification to Current Laws: It amends Minnesota Statutes 2024 sections 290.0131 and 290.0133 by adding new subdivisions that specify these advertising expenses as eligible additions for a tax credit under section 290.0696.

Significant Changes to Existing Law

• The introduction of a tax credit for advertising represents a change in how local media advertising expenses are treated under Minnesota tax law. Prior to this bill, these expenses did not qualify for such a tax credit.
• The bill proposes new coding in Minnesota Statutes chapter 290 to incorporate these changes, making the local advertising cost a recognized addition for tax purposes.

Relevant Terms

• Tax credit
• Local media advertising
• Individual income tax
• Corporate franchise tax
• Minnesota Statutes
• Advertising expenses