S.F. 2306 Summary

• Establishes a tax credit program for insurance companies investing in Minnesota start-up and emerging businesses through certified Minnesota business investment companies.

• Creates an 80% tax credit against insurance premium tax liability for investments in designated capital, with a reduced 20% credit for tax years 2014-2017.

• Sets aggregate limit of $100 million in total tax credits available, with individual investor participation capped at 25% of maximum credits.

• Requires Minnesota business investment companies to meet investment milestones (35% of capital within 2 years, 50% within 3 years, 100% within 6 years) and restricts investments to qualified businesses with under 100 employees headquartered in Minnesota.

• Appropriates $75,000 for fiscal year 2011 and $50,000 base funding for fiscal years 2012-2013 to the Department of Employment and Economic Development for program administration.