Minnesota New Markets Jobs Act Summary

• Establishes the Minnesota New Markets Jobs Act (Chapter 116X) to provide tax credits for investments in economically distressed communities through qualified community development entities.

• Creates a state premium tax credit equal to a percentage of the purchase price of qualified equity investments, with credits earned on seven annual anniversaries at rates of 0% for years 1-2, 8% for years 3-6, and 7% for year 7.

• Limits total certified qualified equity investments to $250,000,000 and requires entities to invest 100% of proceeds into qualified low-income community businesses in Minnesota within one year of issuance.

• Requires qualified community development entities to pay a refundable performance fee of 0.5% of the investment amount (capped at $500,000) and a $5,000 application fee to the Department of Employment and Economic Development.

• Disallows unclaimed tax credits if investments are redeemed before seven years, if investment requirements are not met, or if proceeds are used to fund other qualified equity investments; already-claimed credits cannot be recaptured.