MN SF1774

Establishes Minnesota Business Investment Company Credit program under new section 116J.665, allowing insurance companies to invest designated capital in certified Minnesota business investment companies and receive tax credits equal to 85 percent of their investment.

Certified Minnesota business investment companies must invest at least 35 percent of designated capital within two years and 50 percent within three years in qualified businesses (independently owned, Minnesota-based, max 100 employees, excluding professional services, banking, real estate, insurance, and gambling).

Sets aggregate cap of $100 million in investment tax credits across all participating investors, with individual insurance companies limited to 25 percent of the maximum ($25 million), and requires state to receive 10 percent of net profits from qualified investments.

Modifies small business investment credit (section 116J.8737) by removing debt-with-mandatory-conversion requirement, eliminating intern wage provisions, and increasing annual credit allocation from $12 million to $20 million for taxable years 2012-2014.

Creates new tax credit under section 297I.23 allowing participating insurance companies to claim credits against state premium tax liability, with graduated claim percentages from 2016-2020 (10-20 percent annually), subject to decertification penalties and recapture provisions.