HF2856 Summary

• Modifies the small business investment tax credit program by creating a new "qualified greater Minnesota business" category for businesses located outside the Minneapolis-St. Paul metropolitan area, with $7.5 million of annual credits reserved for greater Minnesota and minority/women-owned businesses for 2015-2016.

• Increases annual tax credit allocation from $12 million to $15 million per year for taxable years beginning after December 31, 2014, through December 31, 2016.

• Adds new qualification requirement prohibiting qualified investors from being founders, officers, principals, or immediate family members of the qualifying business to prevent self-dealing.

• Adds definitions for "immediate family member" (spouse, child, parent, brother, sister) and "greater Minnesota" (area outside the Minneapolis-St. Paul metropolitan area).

• Extends the sunset date of the tax credit program from December 31, 2014, to December 31, 2016, and extends related reporting and credit revocation requirements through 2020-2021.