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SF2754 (Legislative Session 94 (2025-2026))

Border city enterprise zones allocation increase provision and tax reduction authority modification provision

Related bill: HF2931

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to promote economic development in border city enterprise zones in Minnesota by increasing the funding available for tax reductions to businesses in these areas.

Main Provisions

  • Increased Allocation for Tax Reductions: The bill proposes to double the annual allocation for tax reductions in border city enterprise zones from $750,000 to $1,500,000. This increase aims to provide more substantial financial incentives to support business growth and retention in these areas.

  • Use of Funds: The allocated funds can be used for various tax reductions or offsets related to taxes imposed on businesses within the enterprise zones. These financial incentives are intended to help maintain and attract businesses to these areas.

  • Allocation Method: The allocation of funds will be distributed among eligible cities based on their population size.

  • Availability of Funds: The allocations do not have an expiration. They remain available to cities until they are fully utilized for the intended purpose of business retention or attraction.

Significant Changes to Existing Law

  • The bill amends existing statutes by increasing the annual allocation for tax reductions and making the funds available on a continuous basis, rather than allowing them to expire or be canceled if not used within a specific timeframe.

Relevant Terms

  • Economic development
  • Tax reductions
  • Border city enterprise zones
  • Business incentives
  • Minnesota taxation policies

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025SenateFloorActionIntroduction and first reading
March 19, 2025SenateFloorActionReferred toTaxes
March 26, 2025SenateFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Increases annual allocation for tax reductions to $1,500,000."
      ],
      "removed": [],
      "summary": "This section of the bill modifies allocation amounts for tax reductions in border city enterprise zones under section 469.169.",
      "modified": [
        "Changes allocation from $750,000 to $1,500,000 annually."
      ]
    },
    "citation": "469.169"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill amends existing rules governing tax reductions within border city enterprise zones under section 469.171.",
      "modified": [
        "Revises criteria for tax reductions for businesses within the enterprise zone."
      ]
    },
    "citation": "469.171"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References to tax reductions for businesses in border city enterprise zones include allocation use as per section 469.1732.",
      "modified": []
    },
    "citation": "469.1732"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Suggests use of allocations for tax offsets as provided in section 469.1734.",
      "modified": []
    },
    "citation": "469.1734"
  }
]

Sponsors