Bill Summary

• Establishes a new "qualified greater Minnesota business" category with a higher tax credit of 40% (compared to 25% for other qualified small businesses) for investments in businesses headquartered and employing at least 51% of staff in greater Minnesota (outside the metropolitan area).

• Defines "greater Minnesota" as the area of Minnesota outside the metropolitan area as defined in section 473.121, subdivision 2, and requires greater Minnesota businesses to meet all standard qualified small business requirements plus location-specific employment and payroll thresholds.

• Increases tax credit percentage from 25% to 40% for qualified investments in qualified greater Minnesota businesses while maintaining the 25% credit rate for investments in other qualified small businesses.

• Expands annual reporting requirements to include the number of qualified small businesses that are women or minority-owned.

• Applies changes to taxable years beginning after December 31, 2011.