S.F. No. 2892 Summary

• Angel Investment Tax Credit: Creates a 25% tax credit for qualified taxpayers investing minimum $10,000 in Minnesota-based small businesses with fewer than 25 employees engaged in innovation; allocates up to $5 million in credits for 2010 and $10 million annually thereafter.

• Minnesota Business Investment Company Credit: Establishes an 80% insurance company tax credit (phased in 20% yearly through 2018) for investments in certified business investment companies that invest in qualified Minnesota businesses; caps total credits at $100 million.

• Income Tax Changes: Reduces corporate franchise tax rates from 9.8% to 7.8% by 2014; adds subtractions for small business stock gains and pass-through entity income; increases research activity credit to be refundable for taxable years after 2011.

• Lawsuit Reform: Restricts consumer fraud lawsuits to natural persons; requires proof of actual out-of-pocket loss; allows interlocutory appeals of class certification decisions; shortens statute of limitations for product liability from 4 to 3 years.

• Environmental Provisions: Exempts ethanol plants producing less than 125 million gallons annually outside the seven-county metro area from mandatory environmental impact statements; clarifies disposal system permitting requirements.