SF2835

Purpose of the Bill

The bill aims to encourage large corporations to establish or maintain their headquarters in Minnesota by offering tax credits. This initiative is designed to promote economic development and job creation within the state.

Main Provisions

• Corporate Headquarters Credit: The bill establishes a tax credit for qualified corporations that have their headquarters in Minnesota.

• Eligible Corporations: To qualify, a corporation must:

  1. Have worldwide revenues of at least $250 million in the preceding taxable year.
  2. Locate or relocate its corporate headquarters to Minnesota.
  3. Employ at least 250 eligible employees at the Minnesota headquarters.
  4. Invest a minimum of $10 million in eligible expenses related to the headquarters.

• Eligible Expenses and Employee Training: This includes costs associated with relocating, renovating corporate headquarters, and training employees.

• Certification Process: Corporations must apply for certification to qualify for the tax credit. The Minnesota commissioner will certify or provisionally certify corporations based on their compliance with the outlined criteria.

• Credit Details:

  • The credit is calculated based on eligible employee wages, capped at $20,000 per eligible employee.
  • Corporations can claim the credit for up to ten years until they reach the maximum credit amount.

• Annual Reporting: Corporations must annually affirm their eligibility to continue receiving the credit. The commissioner will issue a credit certificate for the taxable year if requirements are met.

Significant Changes to Existing Law

This bill introduces a new statute providing tax incentives specifically for large corporations that choose to have their headquarters in Minnesota, thus potentially changing the location decisions of major companies and affecting state economic development strategies.

Relevant Terms

corporate headquarters, tax credit, relocation expenses, certification process, economic development, employee training, eligible expenses, job creation.