HF2750 Summary

• Creates a small business investment tax credit allowing qualified taxpayers to claim 25% of their investment in a qualified small business, up to the lesser of their tax liability or the certificate amount provided by the commissioner.

• Establishes three certification pathways: certified small businesses (with $150 application fee), qualified taxpayers/accredited investors (with $350 fee), and qualified angel investment network funds (with $1,000 fee), with annual reporting requirements and $100 filing fees.

• Limits tax credit allocation to $10,000,000 for taxable years 2010-2011 and $12,000,000 per year for 2012 and beyond, with credits allocated on a pro-rata basis among same-day applicants and carried forward up to 10 years if unused.

• Requires qualified small businesses to have headquarters in Minnesota, employ at least 51% of workforce in-state, have fewer than 25 employees, and engage in innovation, green manufacturing, or specialized technology development in specified fields.

• Mandates three-year minimum holding periods for investments, with specific exceptions for worthless investments, asset sales, business sales, or public stock offerings; credits revoked if investments not made within 60 days of allocation.