HF3306 Summary

• Tax rate and individual income adjustments: Modifies corporate franchise tax rates (phasing down from 9.8% to 7.8% by 2014) and adjusts individual income tax brackets and rates for married, single, and head-of-household filers.

• Angel investment and business investment credits: Establishes new tax credits for qualified investors in small businesses and creates the Minnesota Business Investment Company Credit program with limits of $5-10 million in annual allocations.

• TECHZ (Technology and Health Sciences Zones) program: Creates new tax incentives including income and franchise tax exemptions, property tax exemptions, and job creation credits for qualified businesses operating in designated TECHZ locations.

• Federal Internal Revenue Code conformity: Updates Minnesota tax law to reference the Internal Revenue Code as amended through January 22, 2010, incorporating federal tax changes into state calculations.

• Research activities credit and property tax provisions: Modifies the research credit structure, establishes TECHZ business reporting requirements, adjusts property tax aid distributions to local governments, and includes various technical and administrative changes.