MN SF2492

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 zero percent for the first two credit allowance dates, eight percent for dates three through six, and seven percent for the seventh date, calculated on the purchase price of qualified equity investments.

Requires qualified community development entities to invest 100 percent of certified equity investment proceeds into qualified low-income community businesses in Minnesota within 12 months and maintain that investment level through the seventh anniversary of issuance.

Allows $250,000,000 total in certified qualified equity investments to be distributed on a first-come, first-served basis, with applications accepted beginning January 1, 2015, and imposes a nonrefundable $5,000 application fee plus a refundable performance fee of one-half percent (up to $500,000 maximum).

Disallows unclaimed tax credits if the issuer redeems investments before seven years, fails to meet investment requirements, or violates prohibited uses of proceeds, with a six-month cure period before penalties apply.