MN HF1823

Creates Minnesota Business Investment Company Credit under section 297I.23, allowing insurance companies to claim tax credits equal to 85% of investments in certified Minnesota business investment companies, with phased-in percentages (10-20%) for taxable years 2016-2020.

Establishes certification requirements for Minnesota business investment companies including minimum $500,000 equity capitalization, primary focus on investing in qualified businesses with no more than 100 employees, and prohibition on investment in professional services, banking, real estate development, and certain other industries.

Sets aggregate credit limit of $100,000,000 with no single investor able to claim more than 25% of maximum credits; requires companies to invest at least 35% of designated capital within two years and 50% within three years of credit allocation date.

Modifies small business investment credit (section 116J.8737) by removing intern wage requirements, striking "debt with mandatory conversion to equity" from qualified investment definition, and increasing credit allocation from $12,000,000 to $20,000,000 annually for taxable years 2012-2014.

Imposes decertification penalties including disallowance of all credits if decertified within two years, 50% disallowance if decertified after two years but before meeting investment requirements, and requires participating investors to pay 10% of net profits on qualified investments to the state.