HF 2770 Summary

• Establishes Minnesota Business Investment Company Credit allowing insurance companies to invest in qualified Minnesota businesses and claim tax credits equal to 80% of their designated capital investment.

• Requires businesses receiving investments to be independently owned, headquartered in Minnesota with 80% of employees in-state, have no more than 100 employees, and cannot engage in professional services, banking, real estate development, insurance, oil/gas, gambling, or retail.

• Sets aggregate limit of $100,000,000 in total investment tax credits and requires companies to invest 35% of designated capital within 2 years and 50% within 3 years of allocation date.

• Mandates Department of Employment and Economic Development certification of investment companies, with nonrefundable $7,500 application fee and $5,000 annual certification fee.

• Allows state to receive 10% of net profits on qualified investments and permits decertification with credit recapture if companies fail to meet investment requirements or violate program rules.